Effects of the plant now, pay later program on the production and income of rice farmers-beneficiaries of Imus, Cavite, 2015

Date

6-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Elizabeth E. Supangco

Abstract

The local government of Cavite implemented the PLANT Now, Pay Later program to provide credit support to rice farmers who have insufficiency of operating capita and to increase the supply of rice in the area. This credit will enable them to increase the quantity of the rates. Research institutions have established the rise farmers will attain higher yield and income, if agricultural credit were provided. The underlying policy question is whether the P5, 000 per hectare financial support is sufficient to meet the operating capital needs of rice farmer-beneficiaries to maximize production. Hence, this study was conducted to determine the effect of the Plant Now, Pay Later program on the production and income of rice farmer-beneficiaries in Imus, Cavite. A total of 26 rice farmer-beneficiaries of the Plant now, Pay Later program of Imus, Cavite, in 2015 were interviewed through complete enumeration. The study used a ?before and after? case scenario. The results of the study showed that the farmers spent a larger portion of their loan for agricultural purposes. However, mutualized loan was still large if these were used properly, it may enable them to purchased additional farm inputs that they underuse. Descriptive analysis revealed that after credit support availment, there was an increase in the usage of N, P, K fertilizers, herbicide, molluscicide, and hired labor, and the yield also increased. These means more available rice produced in the area. On the other hand, there was a decrease in the usage of insecticide and unpaid labor. Cost and return analysis revealed that farmers had higher net income after credit support availment. As for repayment, 52 percent were able to pat their loan 4 months after the due date. The major problem encountered under the program was insufficiency of credit released, which is P5, 000 per hectare. Because the implementing office faced problems on farmer?s repayment, this resulted in a low percentage of farmers availing of credit. The program made effort, to extend aide to rice farmers-beneficiaries to increase their production and net income. They were able to attain higher output as a result of the increase in the input use, hence, the increase in net income. Based on the findings of the study, it is recommended that the implementing office increase the amount of credit available for circulation and establish a system of payment schedule. As for credit available utilization, pre-disbursement seminars on handling loans in cash may help farmers efficiently use their loans. Otherwise, they might consider best better means to provide assistance- e.g., instead of providing cash, they can give loans in kind. The program must also include arrangements with farm input suppliers or retailers to ensure lowest costs of agricultural technicians (ATs) should include seminars and trainings wherein they can educate farmers on recommended rates and good land preparation to optimize the farmer?s productivity. Proper monitoring, through more frequent visits from the ATs will enable them to check any false representation or statements in the loan contract.

Language

English

Location

UPLB College of Economics and Management (CEM)

Document Type

Thesis

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