Qualitative Assessment of Financial Inclusion of Rice Farmers in Sariaya, Quezon

Date

5-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Normito R. Zapata, Jr.

Committee Member

Nimfa D. Montes, Arlene C. Gutierrez, Agnes T. Banzon

Abstract

The study entitled “Qualitative Assessment of Financial Inclusion of Rice Farmers in Sariaya, Quezon” was conducted with the general objective of assessing the status of financial inclusion among rice farmers in Sariaya, Quezon. Specifically, the study aimed to: 1) present the profile of selected rice farmers and their farms in Sariaya, Quezon; 2) determine the rice farmers’ awareness of access points and of formal financial products and services; 3) analyze the accessibility, usage, quality and perceived welfare of formal financial products and services to rice farmers; 4) evaluate hindrances to inclusive finance among farmers; and, recommend strategies for key stakeholders to achieve financial inclusion among rice farmers.

A descriptive research design was used in the study. Primary data was obtained from the rice farmers through personal interviews as facilitated by questionnaires. Thirty-two respondents were interviewed from barangay Castanas, a barangay with the highest number of rice farmers in Sariaya, Quezon. Secondary data was obtained related literature such as journal researches, and published reports from Bangko Sentral ng Pilipinas, Philippine Statistics Authority, and other government and related institutions. The data were qualitatively analyzed strengthened through descriptive statistics such as averages and frequency counts. Integration of the dimensions under the financial service headlines of financial transactions, savings and bank accounts, loans, and insurance was also done.

Respondents were basically aware of most access points and the corresponding common transactions made with them. Majority are not aware of the types of insurance but of life and accident insurance. They also have access to formal financial service providers (FSPs) but often find them strenuous to go to. Despite of the availability of financial service providers in the municipality, farmers still opt to not availing financial products and services from them. Regular usage is often only limited to payment of electricity bills and remitting of money as facilitated by payment centers and electronic money agents. Saving is often either through a microfinance-oriented bank and/or in the house while loaning, especially for farm working capital, is dominant to informal options to individuals such as palay buyers and family, friends and relatives. Only a few have insurance and are aware of its types. Most are satisfied with their transactions with FSPs, however, some who had experienced problems had made it into an exit point in using them. Stronghold foundation regarding positive impact barely subsist that farmers are easily influenced by forehand experiences and spreading information about the experiences of others and thus the reputation of the service and its providers in the community. Lastly, rice farmers perceive the importance and benefit of being able to have access, save, loan and have coverages for unexpected circumstances, however, there are still some that claim they do not use or even want them from financial service providers.

Basically, rice farmers claimed that having no enough money, being the main driver, and cultural behaviors, like that of traditional practices, are the forefront hindrances of the respondents in accessing and using access points. However, for the few times that they have financial transactions, most often, they choose informal options due to being used to them and being more convenient. Rice farmers would often prefer flexible means from availing loans to paying its dues especially when it comes to rice farm working capital.

For recommendations, strategies were suggested for key stakeholders – at which is not mutually exclusive for each - and further areas of research were provided. Rice farmers must take efforts in enhancing their knowledge on finance and offered financial services. Financial service providers should be able to continuously effort into innovating financial products and services most suitable for rice farmers and in educating these farmers of the potential benefits of their usage. Government institutions and related organizations were also suggested of possible actions such as improvement of physical infrastructure, and more importantly, developing of more efficient scheme to facilitate usage of financial products and services. Suggested areas of research include spearheading of relevant institutions in spearheading the designing an appropriate methodology for and segmentation of researches and relating financial inclusion status variations to corresponding behavioral mechanisms in finance of a specific population. These, hopefully, would further aid in achieving financial inclusion among rice farmers and those with related situations whom multi-sectoral efforts are dedicated to.

Language

English

LC Subject

Rice farmers--Philippines, Agriculture, Cooperative--Finance

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 A45

Notes

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Document Type

Thesis

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