Effects of the agri-fishery microfinance program of the Land Bank of the Philippines and the Agricultural Credit Policy Council on the income of the farmer-borrowers of the Sentrong Samahan ng Mamamayang Pilipino in Sta. Cruz, Laguna, 2009-2010

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arvin B. Vista

Committee Member

Danny L. Evangelista, Prudenciano U. Gordoncillo

Abstract

This study was done to determine the effects of the Agri-Fishery Microfinance Program of the Land Bank of the Philippines and the Agricultural Credit Policy Council on the income of the farmer-borrowers of the Sentrong Samahan ng Mamamayang Pilipino (SUMAPI) in Sta. Cruz, Laguna. Specifically, the study aimed to (1) describe the credit scheme of the program; (2) determine the rate of loan utilization of the farmer-borrowers; (3) compare the net income of the farmers who used the loan for the intended purpose and those who misutilized their loans; (4) determine the effects of credit availed under the credit program on the farm income of the farmer-borrowers; (5) determine the loan repayment rate of the farmer-borrowers; (6) determine the factors affecting the loan repayment performance of the farmer-borrowers; and (7) identify the problems encountered in availing the loans from the cooperative SUMAPI. The study was conducted in Sta. Cruz, Laguna which is the capital of the province. Both primary and secondary data were used in the study. Primary data were gathered through an interview with the use of a pre-tested questionnaire. Secondary data were gathered from the cooperative and the program. Thirty farmer member-borrowers of SUMAPI cooperative were selected using simple random sampling. The study used descriptive analysis, determination of loan utilization rate, percent contribution of loan to the net income of the farmer-borrowers, cost and returns analysis, cashflow budgeting, t-test of means and multiple linear regression analysis to determine the effects of the program to the income of the farmer-borrowers under SUMAPI in Sta. Cruz, Laguna. The farmer-borrowers from SUMAPI showed an increase in their net farm incomes after availing the loan. Seventy three percent of the farmer-borrowers reported having full credit utilization rate. Most of the farmer-borrowers were utilizing their loan amounts to its intended purpose. The percent contribution of the loaned amount to the income of the farmer-borrowers is relatively low because the farmers did not fully depend on their loans for the operation of their farm. The average loan repayment rate of the farmer-borrowers which is 84 percent is high but it is not attributed solely to the increase in income of the farmers. Factors that affected the loan repayment rate of the farmer-borrowers include their educational attainment, income from other sources and age. The farmer-borrowers faced different problems in availing and processing their loans. The problems include the slow processing of the requirements for filing the loan application, the cooperative were unable to give the loan on time sometimes and that their office is far especially to farmer-borrowers from Sta. Maria. The farmer-borrowers found it time consuming in going to the office for passing the requirements and in picking up the cheque for encashment since they have a farm to manage. It is recommended that the SUMAPI cooperative must be in coordination to the Department of Agriculture Sta. Cruz in disseminating information for the seminars conducted specifically for farmers. These seminars are necessary for them to better understand their situation in the farm and the goals of the program to increase their incomes and for a better loan repayment. Specific seminars that address income diversification for farmers who have a limited capital can be of great help.

Language

English

Call Number

Thesis

Document Type

Thesis

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