Assessment of credit needs of fish farmers in Lamut, Ifugao, 2010

Date

4-2011

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

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Abstract

This study assessed the credit needs of fish farmers in Lamut, Ifugao. Fish farming in Lamut, Ifugao was made possible by the Hapid Irrigation Project of National Irrigation Administration (NIA) and was further promoted by the One Town One Project (OTOP) by the municipality. Based on a sample of 30 fish farmer-respondents, the study showed that 80 percent of the fish farmers operated in less than a hectare farm. The average farm size in this study was 0.51 ha which is composed of four fishponds on the average. Majority of the respondents were male, married and finished high school. Eighty percent of the fish farmers have been engaged in the fish farming business for one to five years already. The fish farmer-respondents acquired credit from formal, informal and both formal and informal credit institutions. Majority of the fish farmer-respondents borrowed from informal sources and seek for both formal and informal when the needed amount is not enough to sustain the farm operation. Assessment of one growing season of tilapia using cost and returns analysis revealed that the fish farming business is profitable with net farm income of PhP88,634 per farm or PhP174,590 per hectare. The bulk of farm expenses incurred by the fish farmers went to feeds and fingerlings amounting to 70 and 7 percent, respectively. Household expenditures were also analyzed in this study. Education (33%) which covered the allowances of household members sent to school was the second largest cost next to food (56%). The total household income of the fish farmers came from on-farm, off-farm and non-farm activities. Only seven of the fish farmer-respondents had income from other sources aside from the fish farming business. Eighty percent of the respondents had negative savings and only six of them had cash savings to be used for the next growing season. The fish farmers had household cash savings which amounted to negative PhP34,122 implying that even before the farm operations started, the fish farmers are already mired of debt. The average credit need computed in the study amounted to PhP120,851. Results from the multiple linear regression showed that cash savings, farm size and household size had significant effects on the credit needed by the fish farmers. The recommendations and policy implications included the provision of farm-to-market roads for accessibility and increased competition among buyers; passing of ordinance for protection of indigenous culture and practices, creation of special credit program that will cater to the needs of the fish farmers in Ifugao , and conduct of a similar study for the wet season growing cycle.

Language

English

Location

UPLB College of Economics and Management (CEM)

Document Type

Thesis

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