Analysis of cash requirements and loan repayment of rice farmers of Calamba Rice Growers Multipurpose Cooperative in Calamba, Laguna

Date

2011

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Request Access

To request access of this material, please email the administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

Extreme weather conditions, such as typhoon and floods, is a factor in the farmers’ farm productivity that lead to the destruction of crops. This study analyzed the cash requirement and loan repayment of the farmer-members of Calamba Rice Growers Multipurpose Cooperative affected by Typhoon Ondoy in Calamba, Laguna. The study specifically aimed to: (1) determine the cash requirements of the member-borrowers for the next cropping season after the typhoon; (2) determine the loan repayment rate of the member-borrowers of CRGMPC after the typhoon; (3) analyze the financial condition of CRGMPC after Typhoon Ondoy; and (4) determine the modifications made by the management of CRGMPC with its lending operation in view of the occurrence of Typhoon Ondoy. A total of 20 farmer-respondents were interviewed using a pre-tested questionnaire. All respondents were male farmers and claimed that their only source of income is obtained from farming. The data that were obtained from the farmer-respondents include age, civil status, educational attainment, farm size, years in farming, tenure status, household expenses, farm expenses, and farm income. The cashflow analysis was used to determine the farmer’s cash standing after the Typhoon Ondoy and one cropping season thereafter. The average net cash flow position of 20 farmer-respondents was computed to be Php 13,710. After deducting the average total expenses for next cropping season from the average net income (ending balance), the average cash requirement for the next cropping season was estimated to be Php 69,178. After obtaining the average loan (Php 9,256), average cash requirement was decreased. Thus, a total average cash requirement of Php 59,922 is needed for the next cropping season of 2010. The total loan repayment rate of the member-borrowers in 2008 to 2010 were computed. Loan repayment rate of 2008 was estimated to be 70%, while 2009 and 2010 had a loan repayment rate of 49% and 48%. In comparison with the loan repayment rate before the typhoon (2008), repayment rate for 2009 and 2010 decreased significantly. In determining the liquidity and solvency of the cooperative, the current ratio was computed for liquidity and net capital ratio for solvency. The current ratio for 2008 and 2009 were computed to be 2.58 and 16.9. The net capital ratio was computed to be 1.42 for 2008 and 1.64 for 2009. This implies that the cooperative was liquid and solvent before and after the occurence of Typhoon Ondoy. In view of the extreme weather condition, no adjustments were made by both farmers and the cooperative. Farmers continued with their regular farming routine and kept availing on loans to sustain expenses for each cropping season. While the cooperative’s loan policies were remained unchanged.

Language

English

Location

UPLB College of Economics and Management (CEM)

Document Type

Thesis

This document is currently not available here.

Share

COinS