BIBLIOGRAPHY LESTINO, CHARLTONE B. APRIL...
BIBLIOGRAPHY
LESTINO, CHARLTONE B. APRIL 2010. Impact of the Livelihood Assistance
of Land Bank to Bahong Multi-Purpose Cooperative. Benguet State University, La
Trinidad, Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
The study looked into the impact of the livelihood assistance of Land Bank to
Bahong Multi-purpose cooperative. Specifically the study aimed to determine the
contribution of the livelihood assistance program to the socio-economic status of
members and to the cooperative, and identify problems encountered.
The assistance program provided loans for production, trainings and seminars.
The study shows that not all the members of the cooperative joined the assistance
program of Land Bank and for those who joined not everybody availed of the assistance
program especially the loan. Most of the members who avail loans are involved in
vegetable production and cut flower production like rose and mums. Majority were
satisfied with the implementation and services offered by the project.
Problems encountered by both the members and the cooperative were the lack of
information, lack of communication, cooperation and too many requirements. A problem
on loan delinquency was minimal and the reasons for delinquency were; low price of
produce, short grace period and lack of monitoring and follow-up.
The impact of the assistance project to the members were improvement on the
socio-economic status of the project beneficiaries because of increased income due to
increase in capital and production, increased assets both for the members and cooperative
and provided knowledge and ideas or opportunity for other livelihood activities. On the
part of the cooperative, there was an increase in assets and capital lend out to members.
It is recommended that continuous cooperative education and training services
should be conducted regularly to members as well as officers and management staff to
ensure sustainability of operations and development. Furthermore, continuous monitoring
and technical support should be done for sustainable growth and development.
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TABLE OF CONTENTS
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION
Rationale of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Importance of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Objectives of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Scope and Delimitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE
Land Bank of the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Vision and Mission of Land Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Key Cooperative Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Integrated Rural Financing
Program (IRF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Land Bank – Local Government Unit
(LGU) Cooperative Strengthening
Partnership Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Gawad sa Pinakatanging
Kooperatiba (Gawad Pitak) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Technology Promotion
7
Centers (TPCs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Program Accomplishments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Landbank’s Cooperative
iii
Rating System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Cooperative Accreditation
Criteria (CAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
METHODOLOGY
Local and Time of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Data to be Gathered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
RESULTS AND DISCUSSION
The Package of the Land Bank
Assistance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Number of Members who
Joined the Livelihood
Assistance Program
of Land Bank to
Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Problem of Members in Joining
the Assistance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Member’s Satisfaction on the
Livelihood Assistance
Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Number of Members who Availed
of Loans from the Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Purpose of the Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Mode and Method of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Terms of Payment for Installment Basis . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Cooperatives Problem on the
Assistance Program of
Land Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
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Impact of the Assistance Program
to Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Contribution of Livelihood Program
to the Bahong Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Factors Affecting Delinquency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
APPENDIX
A. Survey Questionnaire for
Member-Borrowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
B. Survey Questionnaire for
Cooperative Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
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INTRODUCTION
Rationale of the Study
Livelihood Program were implemented and became a priority programs of
government and non-government organizations of the evident problem of poverty and the
ardent wanting of the private and government sector to help and one of which is Land
Bank.
One of the cooperatives that were assisted by the private sector is the Bahong
Multipurpose Cooperative. The cooperative was established after the killer earthquake in
July 1990 with forty-four (44) individual members and a capital of P30,000. The
application of the cooperative for registration in the Cooperative Development Authority
was approved on February 6, 1991. The cooperative started its operation on credit and
customer services, retailing selected basic commodities such as sugar, rice and LPG. At
that same time Land Bank of the Philippines fielded staffs to assist members to avail
loans for farm inputs in vegetables, cut flower production and hog fattening which was
approved and released on the same year with the amount of P287, 002.08. The
cooperative had assisted farmer-members to access to government programs. At present,
most farmers are now engaged in cut flower production, replacing their vegetable
farming.
In the year 2000, through the effort of the officers of the cooperative they were
able to avail assistance from the Department of Labor and Employment (DOLE). DOLE
conducted training for composting and granted fund amounting to six hundred thousand
(P600,000) which was used on the construction of cold storage and additional grant was
given by the Department of Agriculture to complete the facilities. The marketing service
Impact o f the Livelihood Assistance of Land Bank to
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of the cooperative is currently operating through these post harvest facility. Meanwhile,
credit service was inactive due to absence of transaction until the third quarter of 2005
when the Land Bank assisted the cooperative to resume its lending services.
After the years of trials, challenges, and frustrations faced by the officers of the
cooperative, the officers exerted more effort and learned from their experiences, thus,
were able to manage the cooperative for almost sixteen (16) years, which helped in the
development and provide employment and livelihood to the residents of the barangay
through the livelihood assistance program. The cooperative has employed ten staffs that
include a full time manager. The audited financial statement of the cooperative has
reached a net surplus of PhP 245,286.22 and a total asset of 3.7 million pesos.
Importance of the Study
The result of the study or the experience of the Land Bank with the Baong Multi-
Purpose Cooperative would be a guide for institutions providing the same kind of
assistance. It would also serve as a guide to researchers interested to conduct study of the
same interest.
The result would also serve as an evaluation for Land Bank to assess their project
impact to the cooperative and to member recipients. As to the government, it would serve
as basis in providing support and assistance. Furthermore, results of this study would
serve as a guide for the cooperative in planning their assistance program.
Statement of the Problem
1. What is the impact of Land Bank assistance program to Bahong Multipurpose
Cooperative?
Impact o f the Livelihood Assistance of Land Bank to
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2. What is the effect of the assistance on the improvement of the socio-economic
status of members?
3. What are the problems encountered by the cooperative and Land Bank in
implementing livelihood assistance program?
4. What are the solutions or actions that were employed by the cooperative on
delinquent members?
Objectives of the Study
1. To determine the impact of Land Bank assistance program to Bahong
Multipurpose Cooperative.
2. To determine the effect of assistance on the improvement of their socio
economic status.
3. To find the impact of their assistance to the cooperative.
4. To identify the problems encountered by the cooperative and Land Bank in
implementing livelihood assistance program.
Scope and Delimitation of the Study
The study focused on the livelihood assistance of Land Bank to Bahong
Multipurpose Cooperative.
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REVIEW OF LITERATURE
Land Bank of the Philippines
Land Bank of the Philippines (LBP) is the largest formal credit institution in the
countryside and services more than 5,000 cooperatives and farmers groups benefiting
about 500,000 small farmers and fish folk. Cooperative strengthening Programs,
Livelihood Programs and 495 Countryside Credit Delivery Program, the bank was able to
extend credit assistance to small farmers and fisher folk. The program provided credit to
small farmers and fisher folk through cooperatives and rural financial institutions to
finance various livelihood projects, which include the production of agricultural crops,
livestock/cattle raising and the acquisition of pre- and post-harvest facilities, among
others. LBP is the financial intermediary of the CARP Land Transfer Operations through
which Agrarian Reform had conducted and land transfer claims were valued. In addition
LBP offers refinancing facilities to rural banks and cooperative rural banks. Within its
Banking section LBP offers the whole range of universal bank including investment and
merchant banking, credit and guarantee facilities, deposit services, ancillary services,
treasury, trust, programmed lending and international banking (Anonymous, 2004).
Vision and Mission of Land Bank
Land Bank’s mission has changed over the years. Forty-four years ago, it was
created primarily to serve as the financing arm of the government agrarian reform
program. At present, however, Land bank has taken broader and more dynamic role in
supporting the government’s initiatives geared towards the nation building and poverty
alleviation.
Impact o f the Livelihood Assistance of Land Bank to
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Land Bank’s vision is to be the premier countryside development financial
institution of the country. It commits itself to highest standards of ethics and excellence
in service. Land Banks development goal is centered on promoting sustainable growth
and development in the countryside (Rosko, 2007).
Key Cooperative Strategy
The Key Cooperative Strategy (KCS) aimed to identify, strengthen, and accredit
at least one key cooperative per municipality nationwide, which can act as Landbank’s
valued development partner. The premise is that one strong cooperative is better than
many weak ones.
A distinct feature of a key co-op is its willingness to accommodate and absorb
good paying members of dis-enfranchised cooperatives in an area. As an incentive,
accredited and eligible co-ops are entitled to the waiver of the service fee (2% of the
loan) being charged by the Bank (Anonymous, 2004).
Integrated Rural Financing Program (IRF)
The program is a tie-up program with the Agricultural Credit Policy Council
(ACPC) – also an APRACA member institution. Under the program, cooperative
development technicians (referred to as “Institution-building Specialists or IBS) provided
on-site, hands-on technical support – business/enterprise project identification, planning,
and packaging, marketing assistance, technology transfer, project monitoring and
documentation, operations management training and the like to some 574 cooperative in
12 regions and 29 provinces nationwide. On the average, one IBS staff is assigned to 15
Impact o f the Livelihood Assistance of Land Bank to
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cooperatives. The Land Bank, with P230 million seed fund from ACPC, provides credit
assistance (Anonymous, 2004).
Landbank-Local Government Unit (LGU)
Cooperative Strengthening
Partnership Program
The Land Bank-LGU Cooperative Strengthening Partnership Program is a
partnership with the LGUs in coop strengthening through identification, planning, and
implementation of needed interventions and projects to hasten coop development under
the ‘resource sharing arrangement.’ The provincial or municipal government provides the
necessary funds, on an annual basis, as its equity contribution to the program to defray
costs of coop strengthening activities, such as training, workshops, business development
forums, etc. LGUs also provide seed for guarantee funds for those coops that fall short of
certain eligibility requirements for Land Bank financing. An example of this scheme is an
LGU putting up a guarantee fund to absorb possible loan loss by Land Bank in the course
of lending to the LGU endorsed cooperatives that currently cannot meet Land Bank’s
qualification requirements (Teodesio, 2004).
Gawad sa Pinakatanging Kooperatiba
(Gawad Pitak)
Land Bank was given recognition to model cooperatives that have exhibited
exemplary performance as countryside developers. The “Gawad Pitak” Program targets
the thousands of active cooperatives operating in all parts of the country that have pooled
their resources and expertise to uplift the lives of their members and their communities.
Impact o f the Livelihood Assistance of Land Bank to
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Technology Promotion Centers (TPCs)
The TPC Program is a partnership among Land Bank, state universities and
colleges (SUCs), local government units, and other agencies having common and related
concern on technology promotion and transfer. Technology transfer under the Program
adopts a two pronged approached of technology showcasing and credit support. The basic
strategy is to tie-up with SUCs with an inventory of updated technology (research being
one of their primary functions). Private entities, called Private Technology Providers, are
also allowed to validate and promote their developed technologies thru the TPC. LGUs
provide counterpart fund and technical support while Land Bank provides the financing
assistance to technology adopters. Technology focus of TPCs includes agriculture
(lowland, upland), livestock and feed grains, root crops and fiber crops, aquatic and
fishery products (Teodiso, 2004).
Program Accomplishments
Among its cooperative assistance programs, the IRF program has the most
integrated package of assistance that incorporated the major intervention strategies of
Land Bank on cooperatives’ development. It was also under this program that various
intervention converge – from the cooperative rating, to membership savings, operation to
the current thrust on business enterprise development. Targets on these KRAs are set
annually. These targets are first prepared by the staff and units concerned and then have
to be negotiated with their supervisors and top management. Once approved by top
management, the targets then become the KRAs in evaluating individual as well as unit
performance of the staff and unit concerned (Teodesio, 2004).
Impact o f the Livelihood Assistance of Land Bank to
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Landbank’s Cooperative Rating System
In 1994, the Cooperative Accreditation Criteria (CAC) was launched as a Land
Bank prescribed set of performance standards and credited requirements that cooperatives
must attain so they can be provided with appropriate financial and technical assistance.
The CAC was revised in 1997 to promote the growth of quality cooperatives.
CAC seeks to rationalize and systematize the delivery of financial and technical
assistance to bank assisted cooperatives (BACs). The CAC enables Land Bank units to
assess and calibrate credit assistance to bank assisted cooperatives and plan and
implement timely, adequate and necessary measure to graduate BACs to higher level of
“maturity”. To ensure an objective examination and rating of cooperatives, a special unit
– separate from the staff of the lending unit (Lending Center) and institution capacity
building unit (Development Assistance Centers) undertakes the performance audit of the
cooperatives. A performance audit is normally taken once a year for each cooperative
(Teodesio, 2004)
Cooperative Accreditation Criteria (CAC)
The CAC contains two (2) major parts. These are the requirements cooperatives
must attain to access or continuously receive financial assistance from Land Bank and the
system for categorizing Bank Assisted Cooperatives (BACs) based on their maturity
level. The requirements are further subdivided into prequalification requirements which
all prospective cooperatives wishing to access credit assistance from Landbank for the
first time must pass, minimum requirements which Newly-Accessing Cooperatives
(NACs) and existing BACs must attain before they can avail of assistance and standard
requirements which existigng BACs shall endeavor to attain. In all cases, the compliance
Impact o f the Livelihood Assistance of Land Bank to
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of cooperatives with the requirements is subject for validation. Furthermore, the
accreditation does not look solely on the performance of the cooperatives. The Board of
Directors (BODs) and management staff must pass the credit and background
investigation as well. The system for BACs classifies them into four (4) classes; class
A,B,C, and D. Cooperatives failing to attain Class D level shall be rated as F or Fail and
cannot avail of credit facility. The activity shall also identify specific BAC strengths and
weaknesses which serve as guide to Land Bank was able to plan proactively and
implement timely and adequate strengthening interventions or assistance to help BACs
attain higher growth levels. The categorization of BACs involves quantitative and
qualitative appraisal criteria which are critical to coop’s level of maturity or growth
(Teodesio, 2004).
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METHODOLOGY
Local and Time of the Study
This study was conducted at Bahong La Trinidad, Benguet where the Bahong
Multipurpose Cooperative is located. This was conducted on November to December
2009.
Respondents of the Study
Respondents of the study were the members of the cooperative who joined the
livelihood project of Land Bank whether they availed or did not avail of the project
assistance for livelihood. A total of 100 members served as respondents of the study.
Data Gathered
The data gathered were on the benefits or services availed from the Land Bank
and its impact to the members. The problems they encountered and the solutions
employed were also gathered.
Data Collection
To attain the objectives of the study, the primary data were gathered through
interview with the aid of a questionnaire. Likewise, secondary data pertaining to the
profile of the cooperative and reports were sourced out from the cooperative records.
Data Analysis
The data and information gathered were analyzed and interpreted according to the
objective of the study. Data were analyzed using frequency analysis.
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RESULTS AND DISCUSSION
The Package of the Land Bank
Assistance Program
The assistance program of Land Bank is a package which includes the livelihood
training, lending/loan services and a seminars and workshops conducted. The livelihood
training maybe on the existing livelihood activities such as improved technology or on
other potential livelihood activities at the same time planning as this was one of the
requirement for the borrower. Majority (82%) of the respondents mentioned the seminars
and workshops was the major assistance provided, secondary was the livelihood trainings
(15%) and the financial assistance provided (8%).
Number of Members who Joined the Livelihood
Assistance Program of Land Bank
to Cooperatives
One of the programs of Land Bank is to alleviate poverty was livelihood
assistance through cooperatives. Bahong Multipurpose Cooperative was one of the
recipient cooperative of Land Bank. However, not all members of the cooperative can
avail of the assistance. Cooperative members who were interested formed a group and
became the recipients’ of the project. Among the 100 respondents of the study who
joined the livelihood assistance program of Land Bank, 78% availed of the assistance
program while 22% did not availed but they only joined the Land Bank assistance
program (Table 2). The assistance program provides additional capital in the form of
farm inputs or supplies such as fertilizers and chemicals for cut flower production.
Impact o f the Livelihood Assistance of Land Bank to
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Table 1. Land Bank assistance program provided
PARTICULAR
FREQUENCY
PERCENTAGE
Seminars and workshops
82
82
Livelihood training
15
15
Lending services
8
8
Table 2. Number of respondents who availed of the assistance program of Land Bank
PARTICULARS
FREQUENCY
PERCENTAGE
Availed the assistance
78
78
program of Land Bank
Did not avail the Land
22
22
Bank assistance program
Problem of Members in Joining
the Assistance Program
Table 3 shows the problems of the members in joining the assistance program of
Land Bank. Results shows that the most common problem encountered by members was
on the lack or limited information (61%) about the program, thus, the members do not
know about the “pros and cons” of availing such assistance. This may also be the reason
why some of those who joined did not avail of the assistance. Some members do not like
to take the risk. Other problem encountered were personal reasons such as no time to
attend because farmers were busy in the garden and wives in household chores. The far
distance of the house to the cooperative office was another reason mentioned. Usually
the assistance provided was in the form of farm inputs such as fertilizer and the recipients
Impact o f the Livelihood Assistance of Land Bank to
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need to pick these up in the cooperative, thus hauling would be difficult especially if the
distance of farm to cooperative office is far.
Member’s Satisfaction on the
Livelihood Assistance
Program
Table 4 shows that most (68%) of the respondents were satisfied with the
implemented livelihood assistance program which promotes their livelihood or way of
living. The program had provided them with farm inputs and post harvest facilities for
their farm produce. Thirty two percent were not satisfied with the livelihood assistance
program, some of these respondents who were not satisfied were those who did not avail
of the project though they joined the project while the others availed of the assistance
program may not be enough for use as these assistance program will only augment some
of the needed inputs. In most assistance program especially for government assisted
projects, it is only intended to augment capital. The beneficiary should always have a
counterpart. This implies that in projects not every beneficiary get satisfied, this maybe
due to the limited quantity loaned out.
Table 3. Problems encountered by members in joining the assistance program
PARTICULAR
FREQUENCY
PERCENTAGE
Lack/limited information
61
61
No time to attend
23
23
Busy in garden or house
12
12
chores
House distance from coop
4
4
* Multiple responses
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Table 4. Satisfaction of members
PARTICULARS
FREQUENCY
PERCENTAGE
Satisfied
68
68
Not satisfied
32
32
TOTAL
100
100
Number of Members who Availed
of Loans from the Cooperative.
Table 5 shows that majority (64%) availed of loan from the cooperative while
thirty six percent did not apply for the loan program. Those members who availed of the
loan need additional capital for expansion and for farm improvements. Those who did not
avail of the loan do not need additional capital or because they were financially secured
and have other sources of capital such as savings.
Purpose of the Loan
Out of the 64 respondents who availed of the loan from the assistance program,
48% of the members used or invest their loans to cut flower production, 30% invested
their loan to other business that can be profitable such as cutflower trading and other
livelihood activities (Table 6). Some respondents (14%) spent the loan for child
education as payment for tuition fee and other school related expenses. Eight (8)
members used the availed loan for other purposes such as to purchase luxury items. The
findings show that a portion of their loan was not used for capital but for other purposes.
However, majority of the respondents still used the loan for the intended livelihood.
Impact o f the Livelihood Assistance of Land Bank to
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Table 5. Number of members who availed of loans from cooperative through the program
PARTICULARS
FREQUENCY
PERCENTAGE
Availed of the loan assistance
64
64
Did not avail of the loan assistance
36
36
TOTAL
100
100
Table 6. Purpose of the loan
PARTICULARS
FREQUENCY
PERCENTAGE
Investments in cutflower
production
48
48
Business capital
30
30
For child education
15
15
Purchase luxury items
8
8
*Multiple response
Mode and Method of Payment
Since the loan was coursed through the Bahong Multi-Purpose Cooperative, no
collector was hired by the Bank or by the cooperative. Collection of the loan was done
by the cooperative as this was the counterpart of the cooperative, that they will be
responsible in the collection. All the respondents, preferred to pay personally to the
cooperative in order also to check or update them on their loan balances, however, there
were times that they cannot go to the cooperative, thus they sent payment it through a
representative (Table 7).
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Loans from the assistance program were paid on installment basis as indicated in
the implementation procedure of the program. As indicated in table 7, ninety five percent
of the borrowers find it easier to settle their loans on installment basis. Five percent of the
respondents who got a higher income from the production preferred to pay in full.
Terms of Payment for Installment Basis
Borrowers settle their loans in three (3) terms. Those who utilized their loan for
agricultural production paid on quarterly (29%), annually (34%) or after harvest (51%) .
The terms of payment depend on the length of cropping season and on the kind of crops,
The respondents who have other sources of income such as employment preferred to pay
on a monthly basis (Table 8). This implies that respondents preferred to pay their loans
after harvest or selling of their crops because their loans was really intended for that
purpose.
Table 7. Mode and method of payment
PARTICULARS
FREQUENCY
PERCENTAGE
Method of payment
Personally went to the cooperative
64
100
Sent payment through representative
5
8
Method of payment
Full payment
3
5
Installment
61
95
TOTAL
64
100
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Cooperatives Problem on the Assistance
Program of Land Bank
Table 9 shows the problem that arises in the assistance program of Land Bank.
According to the 42 respondents, one problem is the limited funds provided by the bank.
Thirty percent, the lack of cooperation among members, maybe because the processing is
done all in one time, but some of those who joined the program did not work on the
requirements, thus, application and processing is delayed. Four of the respondents
mentioned the too many requirements and they are not patient to fix and work on the
requirements. Two of the respondents mentioned that lack of communication between the
cooperative and the recipients and another 2 mentioned the lack/limited information of
information. The communication problems that aroused maybe attributed to the
lack/limited of information about the program.
Table 8. Terms on installment payment
PARTICULARS
FREQUENCY
PERCENTAGE
Monthly
30
49
Quarterly
18
29
After harvest
31
51
Table 9. Cooperatives problem on the assistance of Land Bank
PARTICULAR
FREQUENCY
PERCENTAGE
Lack of communication
2
2
Lack of information
2
2
Lack of cooperation
30
30
Lack of budget
42
42
Many requirements
4
4
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Impact of the Assistance Program
to Members
Generally, the assistance program offered had been helpful in alleviating the
quality of life of the members. The said program contributed in introducing other means
of livelihood other than the old or traditional way as mentioned by 33% of the
respondents. The old and traditional way mentioned referred to in this study was that
there were improvements in the techniques of production such as greenhouse production
to have an all season production of vegetables and cutflower. Furthermore, in the case of
the vegetable growers in Bahong, because of the assistance program, majority of the
residents in the area converted their vegetable farms to cutflower production where
competition is lesser since very few in Benguet were engaged in cutflower production.
Majority of the farmers in Benguet province were into vegetable and rootcrop
production, thus competition is high. Furthermore, because of the loaned inputs, their
traditional farming practices were changed to a modern conventional way of production.
Table 10. Impact of the assistance program to members
PARTICULARS
FREQUENCY
PERCENTAGE
Improved traditional
means of livelihood
33
33
Improved economic status
30
30
Provided capital for
business
23
23
Provided more ideas and
knowledge
7
7
Help
7
7
TOTAL
100
100
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Thirty percent of the respondents mentioned that the assistance program had
improved their economic status due to the increase in capital provided by the program as
mentioned by twenty three percent of the respondents. The additional capital provided by
the assistance program had increased their production, thereby increasing their income.
An increase in income means an increase on the purchasing power of consumers
(Leftwich, 1976), thus improving the economic status of the households. The assistance
program had also provided them capital for other business (23%), thereby increasing their
income or providing then additional income from other sources – business.
Seven percent of the respondents mentioned that the program had provided them
more ideas and knowledge especially on livelihood opportunities. Although 22 of the
respondents did not avail of the assistance program, the trainings and seminars conducted
as a package of the assistance program had provided them knowledge and ideas on
livelihood activities.
On the other hand, seven percent mentioned that the assistance program had help,
them but did not elaborate the impact of the program to them or to their household. The
result therefore implies that those who borrowed had earned extra income and improved
their socio-economic status.
Contribution of Livelihood Program to
the Bahong Cooperative
Aside from the members who benefited from the assistance program of the
Land Bank, the cooperative also benefited from the said program (Table 11). Through the
program, the cooperative was able to increase capital loaned out to the members, from
Impact o f the Livelihood Assistance of Land Bank to
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Table 11. Contribution of the livelihood programs of Land Bank to Cooperative.
PARTICULAR
FREQUENCY
PERCENTAGE
Increased capital to lend to member
9
20.93
Increased asset
7
16.28
this there was also an increase in income for the cooperative because of the
interest from the loan.
Through the program/project their credit services had expanded, thus, improving
the socio-economic status of members.
The asset of the cooperative had increased through the program, the program
provided the cooperative with computers for their operation. The program had also
provided the cooperative with cold storage which is rented out to members and storage
house for farm inputs. These facilities have improved and increased services offered by
the cooperative to members.
Factors Affecting Delinquency
In almost all lending agencies, the major problem is delinquency of borrowers,
this was also experienced in the Land Bank assistance program. Table 12 shows the
factors contributory to the loan delinquency of the beneficiaries of then assistance
program. Out of the 64 who availed of the assistance program, nine of them mentioned
the low price received from their product is the major reason of delinquency. The
respondents were not able to recover the expenses incurred in the production because of
the low price received, thus, were not able to pay their loan. Four of the respondents
Impact o f the Livelihood Assistance of Land Bank to
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21
mentioned, the lack of monitoring and follow-up services had contributed to loan
delinquency. This maybe due to the misuse of loan, that the loan was not used for
intended purpose nor was not used for livelihood activities. On the other hand,
monitoring was minimal because of the distance of the house or farm from the
cooperative. Two of the respondents mentioned the short grace period given to them. The
respondents mentioned that they have less time to prepare payment, especially if crops
have long production period like in the case of roses, where from start –up, it takes about
6 months to be able to produce a bigger quantity of produce. However, delinquency
problem was not that serious in the case of the Bahong Multi-Purpose Cooperative
because very few of the respondents did not pay on time, majority paid their loans on due
date.
Table 12. Factors affecting delinquency
PARTICULARS
FREQUENCY
PERCENTAGE
Low price of product
9
14
Lack of monitoring and follow-up services
Short grace period
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This was conduct to determine the impact of Land Bank assistance program to
Bahong Multipurpose Cooperative; to determine the impact of the assistance project of
Land Bank to the cooperative and to the members of the cooperative; and to identify also
the problem encountered by the cooperative and Land Bank in implementing livelihood
assistance program. This study was conducted in Bahong, La Trinidad, Benguet on
December 2009.
The assistance project started to implement the Livelihood Assistance Project two
month after the killer earthquake in July 1990 in collaboration with the Department of
Agriculture who provided the trainings and technical assistance.
The assistance program provided loan in the form of farm inputs and implements,
provided trainings and seminars.
The study shows that not all the members of the cooperative joined the assistance
program of Land Bank and for those who joined not everybody availed of the assistance
program especially the loan. This shows that the others were only interested on the
trainings provided. Most of the members who avail loans are involved in vegetable
production and cut flower production like rose and mums. Majority were satisfied with
the implementation and services offered by the project.
Problems encountered by both the members and the cooperative were the lack of
information, lack of communication, cooperation and too many requirements. Problem
on loan delinquency was minimal and the reasons for delinquency were; low price of
produce, short grace period and lack of monitoring and follow-up.
Impact o f the Livelihood Assistance of Land Bank to
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The impact of the assistance project to the members were improvement on the
socio-economic status of the project beneficiaries because of increased income due to
increase in capital and production, increased assets both for the members and cooperative
and provided knowledge and ideas or opportunity for other livelihood activities. On the
part of the cooperative, there was an increase in capital lend pout to members and assets.
Conclusions
Based on the findings, the following conclusions were derived.
1. Not all the members who joined of the assistance program availed of the
services provided by the program.
2. All those availed of the assistance project were satisfied on the Landbank
Assistance Program.
3. The loans from the assistance program were used in cutflower and vegetable
production.
4. The assistance program of Landbank to Bahong Cooperative had improved
the socio-economic status of the beneficiaries and also the cooperative.
Recommendations
Based on the result, the following are recommended:
1. Continuous cooperative education and training services should be conducted
regularly to members as well as officers and management staff as guidance and for them
to strengthen their knowledge and be supportive to the cooperative programs and ensure
sustainability of operations and development.
Impact o f the Livelihood Assistance of Land Bank to
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2. Continuous monitoring and technical support should be done for sustainable
growth and development.
Impact o f the Livelihood Assistance of Land Bank to
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25
LITERATURE CITED
ANONYMOUS 2004. Integrated Rural Financing Program of APRACA. Retrieved
November 16, 2009 from www.cde.ca.gov.el/er/cooplng.asp
ANONYMOUS 2005. Key cooperative strategy. Retrieved September 15, 2009 from
http://www.cde.ca.gov/sp/el/er/cooplimg.asp
TEODESIO, R. A. 2004. Cooperative Accreditation Criteria (CAC). Retrieved from
http://www.un/org/esa/socdev/egms/docs/cooperatives/Teodesio.pdf
TEODESIO, R. A. 2004. Land bank cooperative rating system. Retrieved September 15,
2009 from http://www.un.org/esa/ socdev/egms/docs/cooperatives/Teodesio.pdf
TEODESIO, R. A. 2004. Land bank Local Government Unit (LGU). Retrieved
September 15, 2009 from http: //www. un. org/esa/ socdev/ egms/docs/
cooperatives/ Teodesio.pdf
TEODESIO, R. A. 2004. Program Accomplishment. Retrieved September 15, 2009 from
http://www.un.org/esa/ socdev/egms/docs/cooperatives/Teodesio.pdf
TEODESIO, R. A. 2004. Technology Promotion Center (TPCs). Retrieved September 15,
2009 from http://www.un.org/esa/ socdev/egms/docs/cooperatives/Teodesio.pdf
ROSKO, M. 2007. Banks and Banking. Retrieved on October 26, 2009 from.
en,wikepedia.org/ indi/outline of economics in German 1867.
Impact o f the Livelihood Assistance of Land Bank to
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APPENDIX A
Survey Questionnaire
(for member borrowers)
A. GENERAL INFORMATION ON THE RESPONDENTS
1. Name
2. Age
3. Sex
Male
Female
4. Civil Status
5. Highest Educational Attainment
Elementary
High school
College
Vocational
B. IMPACT OF LANDBANK ASSITANCE PROGRAM
1. Did you join or attend the assistance program implemented by Land Bank?
Yes
No
2. What program or assistance you avail?
loan program
agricultural guidance
livestock program
business assistance
3. Are you satisfied with the livelihood assistance program that was implemented?
Yes
No
4. How does the assistance program help you?
improve your traditional living
gives you more ideas and knowledge
capitals for business production
improve your economic status
others, please specify
5. What did you encounter in joining the assistance program?
lack of information
no time to attend
busy (garden, household chores)
others, specify
C. REPAYMENTS OF LOANS
1. Did you avail loans from the cooperative?
Yes
No
2. What was the purpose of the loan?
business capital
education
investment
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others, please specify
3. What type of loan did you avail?
Type of loan
Amount
Term
Emergency loan
Agricultural loan
Others, please specify
4. How did you pay your loan?
through collector from cooperative
personally went to cooperative
sent payment to cooperatives
others, specify
5. Methods of payment
full payment
installments
others, specify
6. If installments, what are the terms of payment?
weekly
quarterly
others,
specify
monthly
annually
daily
7. Describe the maturity of your loan?
short
long
just enough
others, specify
8. What was your situation before the assessment of Land Bank on your cooperative?
SITUATION
BEFORE
AFTER
Low capital thus low production
Low income
No source of capital
High income
Others, specify
9. Size of area cultivated
less than one-hectare one hectare
more than one hectare
one hectare and above
10. Crops planted
Vegetables
Flowers
Rice
Fruit Trees
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APPENDIX B
Survey Questionnaire
(For Cooperative Officers)
A. GENERAL INFORMATION ON THE RESPONDENTS
1. Name
2. Age
3. Sex
Male
Female
4. Civil Status
5. Highest Educational Attainment
Elementary
High school
College
Vocational
6. Position in the cooperative
Officer, specify
Manager, specify
B. LAND BANK ASSISTANCE PROGRAM TO COOPERATIVE
1. What are the problems encountered by the cooperative and Land Bank in
implementing Livelihood programs? Please check.
Lack of communication
Lack of information
Lack of cooperation
Lack of budget
2. What are the Land Bank assistance programs to the cooperative? Please check.
Livelihood trainings
Seminars and Workshops
Lending services
Others, specify
3. What are the contributions of the livelihood programs of the Land Bank to
cooperative?
Increase capital of member borrowers
Improved livelihood
Improved economic status of member borrowers
Improved social status
Increased production
Others please specify
4. Did the implemented programs improve the economic status of the cooperative?
Yes
No
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C. MEASURES EMPLOYED COOPERATIVE TO REDUCE LOAN
DELINQUENCIES
1. Method of collecting payments
Full employment
Installment
Others, specify
2. If installments, what are the terms of the payment employed?
Weekly
quarterly
others,
specify
Monthly
Annually
D. FACTORS AFFECTING DELINQUENCY
What do you think are the factors affecting loan delinquency?
Members characteristics which include household size, educational
attainment etc.
Wrong timing of collection
Policy of the cooperative
Lack of monitoring and follow-up services
Others, specify
Impact o f the Livelihood Assistance of Land Bank to
Bahong Multi-Purpose Cooperative / Charltone B. Lestino. 2010
Document Outline
- Impact of the Livelihood Assistanceof Land Bank to Bahong Multi-Purpose Cooperative
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDIX