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ABSTRACT AGBUGGO, JUNELYN ANN S. 2019. Perception of Rice Farmers Towards the Sources of Agricultural Finance in the Rainfed Areas of the City of Batac, Ilocos Norte. Undergraduate Thesis. College of Agriculture Food and Sustainable Development, Mariano Marcos State University, City of Batac, Ilocos Norte. 65 pp Adviser: Dr. Zenaida H. Esteban The study was conducted in the three barangays of the City of Batac, namely Camandingan, Dariwdiw and Tabug. It aimed to assess the perception of rice farmers on the sources of agricultural finance in the rainfed areas. Specifically, it aimed to determine the rice farmer-respondents' socio-demographic profile, farm/economic profile, and their perception towards the sources of agricultural finance in terms of problems, loan process, loan scheme, and in their general perception on how they view the two sources of agricultural finance. Majority of the rice farmer-respondents were middle-aged, most of them were females, married, high school graduate and has a small family size. Majority of the rice farmer-respondents were members of an organization in their barangays and had no training/seminar on rice production. Almost half of the rice farmer-respondents had knowledge on credit through word of mouth. Farming was their main source of income but they were also engaged into animal backyard raising. Majority of the rice farmer-respondents used tractors or hand tractors and most of these machineries are government-owned. The average landholdings of the farmer-respondents were 3,200 sq m and more than half of them were share tenants. To finance their field operations, they used their personal savings, but if they did not have enough capital, they needed to borrow money from capital providers. Almost half of the rice farmer-respondents borrowed loan from the two sources of finance with an average amount of P9, 609 which is payable within 2- 6 months. The general perception of the rice farmer-respondents towards the two sources of agricultural finance showed that they agreed on the statements given. The top five statements in which rice farmer-respondents agreed are the following; borrow only in times of need or urgent situation, the better the repayments record of loans the greater chance to apply for another loan, it helps buy seed, fertilizers at farmer's convenient and choice, credit limits can be enhanced depending on performance and needs, and the repayment is done after harvest. With regards to the problems perceived by the rice farmer-respondents towards the formal and non-formal sources of agricultural finance, the top five statements in which they agreed are the following: high interest rate, unaware of the due date of loan, insufficient amount of loan allowed and loan officer is not helpful and felt mistreated. The perception on the loan process by the rice farmer-respondents was also determined. They agreed to the statements like, repayment period is just and fair and the simple procedures and formalities for the both sources of credit. Majority of their responses was neutral, for they do not know if they will agree or disagree to the statements given. The perception of the loan scheme under both sources of agricultural finance, the rice farmer-respondents agreed on the seven statements like, repayment of loan is low, credit facilities are well informed to the beneficiaries, action on default is informed to the beneficiaries, operate at times and on days, the scheme meets the needs of the beneficiaries and the scheme provided is reaching the right people and lenders are approachable. Based on the results of the study, the following are recommended: the terms used in obtaining loans should be simplified so that they can be thoroughly understood by the farmers; there should be an information dissemination for the farmers in order for them to be knowledgeable of what proper financial institutions they can approach in asking for help, the government, through its lending institutions, should continue its financial assistance to the farmers; and more accessible and affordable facilities should be implemented to the farmers especially in the remote areas of the city/province. |
