Relating the City Agriculture and Fishery Council (CAFCI) Farm Input Assistance Project and vegetable farmers' yield and income, San Pablo City, Laguna, 2011

Date

4-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

Committee Member

Prudenciano U. Gordoncillo, Cesar B. Quicoy

Abstract

The study was conducted to assess the relationship between the City Agriculture and Fishery Council (CAFC) Farm Input Assistance Project (FIAP) and vegetable farmer-borrowers’ yield and income in San Pablo City, Laguna. It aimed to describe the lending policies and procedure implemented by CAFC in its financing project, determine the loan utilization and input utilization of vegetable farmer-borrowers, determine the relationship between input utilization and vegetable farmer-borrowers’ yield and income, determine the loan repayment rate of vegetable farmer-borrowers, assess the perception of farmer-borrowers regarding the financing project, and identify the problems encountered by both vegetable farmer-borrowers and CAFC and recommend possible solutions to address them.

Primary data taken from 11 CAFC-FIAP vegetable farmer-borrowers for the years 2009 to 2010 were subjected to descriptive analysis using simple statistical tools such as frequencies, percentages, and averages, and costs and returns analysis. Assessed changes in input utilization after credit availment were cross tabulated with yield and net income to determine if there is existing relationships among them.

Results revealed that in general, the amount of loanable funds had a highly fluctuating trend and the mean loan utilization rate was 93.91 percent. Input utilization of 82 percent of the farmer-borrowers was found to be the same after credit availment. Cross tabulation results showed that there was no relationship between farmer-borrowers’ input utilization and farms’ yield since there was no definitive pattern observed between the two variables. Moreover, results showed that input utilization and farmer-borrowers’ gross income, total production cost, and net income were not related. Farmer-borrowers’ input utilization was the same after credit availment, thus, improvement in their income and higher production cost incurred were not attributable to FIAP.

Analysis of loan repayment performance revealed that on the average, 46 percent of the farmer-borrowers were able to pay their loans on time, 27 percent paid only a portion of their loan, and 27 percent did not pay at all. Farmer-borrowers regarded FIAP as releasing loans that are timely because it processes loans fast and has easy to acquire loan requirements but the amount of loan is inadequate for their needs. The problems encountered by CAFC were: large number of delinquent borrowers, decrease in their loanable funds, problem in finding private stores who will be their partner in loan disbursement, and poor loan record keeping resulting to poor management.

Based on the results of this study, it can be said that there is no enough evidence to show that CAFC-FIAP was indeed able to increase its farmer-borrowers’ yield and income, nor was it ineffective in achieving its objective of increasing the input utilization of their farmer-borrower and therefore improve their income due to reasons beyond the control of the farmer-borrowers. The following are the recommendations: increase the amount of FIAP total loanable funds, increase the loan ceiling per farmer-borrower, and improve the loan monitoring scheme.

Language

English

Call Number

Thesis

Document Type

Thesis

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