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ABSTRACT RAGUTERO, ELLA MAE A. 2019. Perception of Rice-Farmers Towards the Sources of Agricultural Finance in the Irrigated Areas of San Nicolas, Ilocos Norte. Undergraduate Thesis. College of Agriculture, Food and Sustainable Development, Mariano Marcos State University, City of Batac, Ilocos Norte. 69 pp. Adviser: Dr. Zenaida H. Esteban A survey was conducted in three barangays of San Nicolas, Ilocos Norte, namely, San Marcos, San Lorenzo and San Guillermo. This study aimed to assess the perception of rice-farmers towards the sources of agricultural finance in irrigatedareas. Specifically, it aimed to determine the socio-demographic profile, determine the farm/economic profile and the perception of the rice farmer-respondents towards the sources of agricultural finance in terms of general perception on the agricultural finance, problems encountered/perceived, loan process and loan schemes. The rice farmer-respondents belonged to middle aged group (40-59 years old) and male. Majority (75%) were married and high school graduates. The families are medium-sized (6-10). Majority are not members of any organization and did not attend training and learned about the agricultural finance through word-of-mouth. With regard to the farm machinery used on rice production, 93% used tractor wherein 91% of which rented it. The rice farmer-respondents also engaged in backyard farming like poultry and livestock. Most rice-farmer respondents earned an income ranging between Php 5,000 - Php 24,999. The study revealed further that 82% of the rice farmer-respondents planted an area of 500-5,000 sq. m. Most (98%) of the rice farmer-respondents were share tenants. Moreover, personal savings constitute the major source of capital. In cases of savings insufficiency, most of them borrowed a loan ranging from Php 5,000 - Php 9,999 which is usually payable within four months. The result of the study showed that the rice farmer-respondents agreed on the general perceptions on credit on the following statement: borrow only in times of urgent situation, credit helps to buy seeds, fertilizers at farmer's convenience and choice, the better repayments record of loans, the greater chance to apply for another loan and credit limits can be enhanced depending on performance and needs. In terms of problems encountered/perceived, the rice farmer-respondents were still undecided on various challenges they faced in accessing agricultural finance either from formal or non-formal source. The rice farmer-respondents agreed regarding loan process perception from formal sources. They perceived that asset size of the business is considered as well as cash flow of the business with highest value of 2.96. Moreover, they also perceived that immediate time repayment of loan, unnecessary documents are required, and loan amount is not release on time. On other hand, there was a neutral opinion about the loan process under the non-formal. Finally, rice farmer-respondents' perception agreed about the loan scheme from formal sources. It was found that both volume of credit is enough and action on default is informed to the farmer with score of 2.95. Furthermore, rice farmer- respondents agreed on the loan scheme from non-formal sources. Farmers perceived that both an action on default is informed to the farmers and good financial condition of the guarantor is needed. |
