Accessibility of Agricultural Credit and Its Perceived Effects Among the High-Value Crop Farmers of Atok, Benguet, Philippines

Abstract

Credit plays a vital role in the agriculture sector by providing the financial needs of farmers. The accessibility of credit is a crucial element in agricultural production, however, farmers often face difficulties along this line. Hence, this research aimed to examine the accessibility of agricultural credit among high-value crop farmers taking the case of farmers of Atok, Benguet. The study employed a cross-sectional descriptive research design involving 10% of the population. Findings revealed that respondents interviewed were mostly married females aged 40-59, high school graduates, and landowners with farm sizes less than one hectare producing mainly cabbage and potato. Findings revealed that cooperatives were the primary source of formal credit while relatives served as informal sources. The major constraints when accessing formal credit are limited sources of agricultural credit, high interest rates, and lack of collateral while limited availability of funds, insufficient loan amounts, and short loan durations were the constraints when availing informal credit. Low agricultural income, limited income sources, and crop failure are the common problems associated with credit repayments. Further, farmers perceived an increase in agricultural production and productivity when accessing credit but faced challenges due to existing credits and penalty charges.