BIBLIOGRAPHY LOKINES, RASHID B. APRIL...
BIBLIOGRAPHY
LOKINES, RASHID B. APRIL 2011. An Assessment on the Source of Capital by
Strawberry Farmers in La Trinidad, Benguet. Benguet State University, La Trinidad,
Benguet.
Adviser: Jovita M. Sim, MSc
ABSTRACT
The study was conducted in the different strawberry producing areas of La
Trinidad, Benguet. Forty farmers and ten financiers were interviewed to identify the
source of capital of strawberry farmers, reasons for choosing that source of capital,
conditions set by the financiers or financial institution, the problems encountered by
farmers in using that source of capital and to recommend the best source of finance to be
used by strawberry farmers.
Strawberry farmers sourced out their capital from various sources. The major
reasons of farmers for choosing financiers are: provide sure market, buys the product at a
fix price, farmer can sell product to others, and finances all the operational expenses.
Traders do not charge interest but deduct an amount from the buying price. Good
Shepherd does not charge interest. Some of the farmers financed by Ecumenical Church
Foundation, Inc. (ECLOF) are not sure about the interest rate they are paying since their
answer varies. Card bank charged 2% interest rate per month. Input suppliers do not
charge interest but share equally with the net income of the farmers.
i
Traders, Good Shepherd and input suppliers do not charge service fee while
formal lenders such as ECLOF and Card bank charge a service fee of 3-4%.
Trust is an important requirement in financing for traders and input suppliers,
Good Shepherd loans only to strawberry farmers who are an active member of “Duting
Farmer’s Association”. ECLOF and Card bank require papers or document, credit
investigation, and the farmer should be a member of their cluster grouping, ECLOF also
require collateral.
The problems encountered by farmers with the different sources of capital are the
following: cannot sell their product to others who even offer a higher price, delayed
released of loan, the loan released is limited, and equal sharing of net profit with the
financier.
It is therefore recommended that farmers should look for a better alternative
source of credit where the conditions set by the lender is fair. Banks should be flexible in
giving loans to the farmers. It is also recommended that farmers should join or organize
cooperative so that it could meet their credit needs or look for market similar with Good
Shepherd where the buyer finance and at the same time purchase output at a fair price.
ii
TABLE OF CONTENTS
Page
Bibliography…………………………………………………………………….. i
Abstract…………………………………………………………………………. i
Table of Contents……………………………………………………………….
iii
INTRODUCTION
Rationale………………………………………………………………... 1
Statement of the Problem……………………………………………….
2
Objectives of the Study………………………………………………....
2
Importance of the Study………………………………………………...
3
Scope and Delimitation………………………………………………....
3
REVIEW OF LITERATURE
Agricultural
Financing………………………………………………….. 4
Importance of Credit………………………………………………….....
5
Credit
Involves
Risk…………………………………………………..... 5
Channels of Agricultural Credit…………………………………………
6
Formal Channels of Agricultural
Credit……………………………………................................................
6
Informal Channel of Agricultural
Credit …………………………………………………………………...
8
Reasons why Borrowers Prefer
Informal Channels of
Financing Methods……………………………………………………...
10
iii
METHODOLOGY
Locale and Time of the Study………………………………………….
11
Respondents of the Study………………………………………………
11
Research
Instruments………………………………………………….. 11
Data
Gathered…………………………………………………………. 11
Data
Analysis………………………………………………………….. 11
RESULT AND DISCUSSION
Profile of the Farmer
Respondent…………………………………..........................................
12
Main Source of Income…..…………………………………………….
14
Other Sources of Income……………………………………………….
14
Years in Strawberry Farming…………………………………………..
15
Annual
Income………………………………………………………… 15
Land
Ownership……………………………………………………….. 16
Average Area Cultivated by
Strawberry Farmers…………………………………………………….
17
Distribution of Financier
Respondents…………………………………………………………… 17
Profile of Financier Respondents……………………………………....
18
Source of Capital for Strawberry
Production……………………………………………………………... 19
Requirements of the Different
Financiers in Lending Loan.……………………………………………...
19
iv
Reasons for Choosing the
Source of Capital…………………………………………………………
21
Amount of Capital Borrowed by
Farmers…………………………………………………………………... 22
Interest Rate According to
Farmers and Financier
Respondents……………………………………………………………..
24
Service Fee According to
Farmer and financier
Respondents……………………………………………………………..
27
Benefits Derived by Farmers…………………………………………....
27
Financiers Actions to Prevent
Delinquent Accounts…………………………………………………....
30
Penalties Imposed by Financiers on Late
Payments According to Farmers and
Financier Respondent…………………………………………………....
31
Repayment Conditions According
to Farmers and Financier
33
Respondents………………………………………………………………
Factors that Affects Payment
on Loan………………………………………………………………….
35
Reason for Delayed Payment
on Loans……………………………………………………………….....
35
Repayment Period and Mode of
Payment According to Farmer
and Financier Respondents……………………………………………….
37
Collection Technique Imposed
by Financier Respondents…………………………………………….....
39
Problems Mentioned by
Farmer Respondents…………………………………………………….
39
v
Problems Encountered by Financier
Respondents in Granting Loan………………………………………….
42
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary………………………………………………………………...
43
Conclusions……………………………………………………………...
45
Recommendations…………………………………………………….... 47
LITERATURE CITED…………………………………………………………...
48
APPENDICES
Appendix A. Letter to the Respondents …………………………………
50
Appendix B. Letter to the Manager of ECLOF………………………….
51
Appendix C. Letter to the Manager of CARD BANK…………………..
52
Appendix D. Letter to the Manager of Good
Shepherd Convent……………………………………………………......
53
Appendix E. Interview Schedule…………………………………………
54
vi
1
INTRODUCTION
Rationale
Being one of the leading producers of strawberry in the Philippines, the
municipality of La Trinidad, Benguet declared strawberry as their one-town-one product.
Balaki (1992), stated that strawberry has been in Benguet for the last 50 more years with
production yields that average 12 tons per hectare. Thus, it is a profitable source of
income for farmers, food processors, other entrepreneurs in the area and additional
revenue for the province.
In traditional agriculture, the concern of the farmer was only to produce food for
himself and his family. However, as our population increases, the farmer must produce
not just for himself but also for others. This extension of concern means that the farmer
will now operate his farm like a business enterprise (Presidential Committee on
Agricultural Credit, 1979).
Strawberry farming, like any other business requires capital for various
production activities. Presidential Committee on Agricultural Credit (1979), defined
“capital” as the designation applied to all goods used in the production of other goods,
including plants and machinery.
Capital come from various sources such as personal saving, loans from banks,
cooperatives, input suppliers and other financiers. Yubos (2006), observed that
unavailability of cash and poor access to financial institutions or support is one of their
constraints in production. Sayap (2006), also found that the average volume of strawberry
produced per farm was very low due to the small area cultivated. One limiting factor why
the farmers cannot expand their area cultivated was the lack of capital.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
2
Therefore this study was conducted to find out the best source of finance for
strawberry farmers in La Trinidad, Benguet and at the same time to document it.
Statement of the Problem
This study intended to answer the following questions:
1. What are the sources of capital of strawberry farmers?
2. What are the reasons for choosing that source of capital?
3. What are the conditions set by the financiers or financial institutions?
4. What are the problems encountered by farmers in choosing that source of
capital?
5. What is the best source of finance to be used by strawberry farmers?
Objectives of the Study
The objectives of the study were the following:
1. To identify the source of capital of strawberry farmers.
2. To identify the reasons for choosing that source of capital.
3. To determine the conditions set by the financiers or financial institutions.
4. To identify the problems encountered by farmers in using that source of
capital.
5. To recommend the best source of finance for strawberry farmers.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
3
Importance of the Study
The study was conducted to document the source of capital by strawberry farmers
in La Trinidad, Benguet. Result of the study could be used as a guide for strawberry
farmers in choosing source of capital for farm operations. Result may also serve as a
guide for others who will be conducting similar studies.
Scope and Delimitation
The study focused on the documentation and assessment on the source of capital
by strawberry farmers in La Trinidad, Benguet.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
4
REVIEW OF RELATED LITERATURE
Agricultural Financing
Finance is one of the most important aspects of business management. Without
proper financial planning a new enterprise is unlikely to be successful. Managing money
is essential to ensure a secure future, both for an individual and for an organization
(Wikipedia, 2010).
According to Snoodgrass and Wallace (1975), capital used in agriculture is
composed of both equity and debt capital. Debt capital comes into being when borrowed
money (credit) is used to purchase inputs for production process and generates money
income over time. On the other hand, equity capital is the capital that is fully owned and
free of debt.
Many ventures find that debt financing is necessary. Short term borrowing (one
year or less) is often required for working capital and is repaid out of the proceeds from
sales. Long- term debt (term loans of one to five years or long term loans maturing in
more than five years) is used to finance the purchase of property or equipment, with the
purchased asset serving as collateral for the loans (Kuratko and Hodgetts, 2007).
PCAC (1979) defined “credit” it is this transaction between two parties in which
one (the creditor or lender) supplies money, goods, services, and securities on the basis of
future payment by the other (the debtor or borrower). Such a transaction normally
includes the payment of interest to the lender. Credit in the farm business is becoming an
ever increasingly important resource on nearly all commercial farms. According to
Mortenson and Luening (1972), most commercial farms use both their own capital and
borrowed capital.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
5
According to PCAC (1979) farm supplies are not always available to small
farmers and if they are, they are usually are very expensive. Farmers cannot afford these
because they do not even have enough money to support basic family needs. They may
have little or no savings to add to their working capital.
Importance of Credit
According to Mortenson and Luening (1972) borrowed capital if properly used,
can contribute to the farm’s net income in several ways. Credit can (1) help establish
maintain a farm business of adequate size; (2) assist in making the needed changes in the
farm business to meet changing conditions; (3) improve the efficiency of the farm
business, such as substituting machinery for labor; (4) keep the business moving through
times of income fluctuations due to variations in income and expenses and the
uncertainties of price, weather, disease, etc.; and (5) provide for a transfer of a profitable
farm business to another operator.
Credit Involves Risk
Bangsoyao (2009) found out that among the type of loan given by cooperatives
the agricultural loan/ regular loan had the highest percentage of delinquencies. The
reason is because of the risk in agricultural production, price fluctuation of vegetable and
the weather condition.
Taganas (1979) as cited by Taag (2009) found out that the failure of farmers to
pay loans on time at maturity was caused by diversion of loan to non-farm activities. This
was due to late release of the loan which motivated them to divert it to several uses other
than the intended purpose. As a result, nothing was used on the intended purpose. This
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
6
further resulted to the extent of selling their house, lands just to augment the amount
needed for land preparation and other expenditures. Others sold their houses to pay their
debts when the collateral used was forfeited.
PCAC (1979) stated that risk in farming falls into three broad classes: (a) Those
resulting from natural factors such as weather, fire, flood, earthquake, and plant or animal
pests and diseases; (b) Those arising from the human factor or carelessness and
incompetence in handling capital goods, dishonesty, strikes, violence and political
disturbance; and (c) those which arise out of the uncertainty of market conditions, some
of which are related to the first two classes.
Channels Agricultural Credit
The present system of credit delivery in the Philippines uses two channels,
namely, the informal or non-institutional channels of credit and the formal or institutional
channels of credit and the formal institutional sources (PCAC, 1979).
Formal Channels of Agricultural Credit
It is consist of banks and non-bank institutions, which are either controlled by
private or by the government.
Banks
Langadan (1997) found that most of the farmers who have been borrowing loan
from banks have made some improvement on their farm as well as their homes; and that
the farmers are able to increase their investment and other farm tools and equipment
because of the increase in their income through the modern practice of farming which
were introduced to them by the agricultural extension worker.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
7
Cooperatives
Farmers and businessmen too, need to seek some lending institution like
cooperative, to borrow enough funds for capitalization purposes to maintain its
production operation and to work for it to gain income (Dequit, 2003).
Cooperative stipulates credits to members who engage in business and other
income projects to sustain and expand its operation. At the same time, this lending
institution also needs to require its member to pay their loans at a proper time to avoid
dissolution of operation (Dequit, 2003).
Supa (2005) found out that cooperatives and the banks have similar types of loan
granted but the banks lend to the general public while the cooperative lend mainly to their
members. The interest loan charged by the banks was lower than the interest rate charged
by the cooperatives. However, the service fees on loans charged by the cooperatives were
lower than what the banks charge.
Baliwen (2007) stated that almost all of the cooperatives had written policies
which they implemented strictly to their members. The requirements of the cooperatives
for borrowing loans are share capital, co-makers, collaterals, savings deposit and business
plan. The share capital was required by all the cooperatives.
The requirement submitted by the respondent when they applied loan are; real
estate mortgage and fixed deposit certificate and checking account. There are some
reasons why the borrowers will submit requirement. This will serve as the security
measure for the cooperative and also it was a tradition practices of the cooperative
(Kiwaen, 2007).
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
8
Taag (2009), said that the cooperative consider character, capacity, collateral,
condition and capacity of the borrower before lending out money to avoid risk in the
cooperative. The cooperative foreclose the collateral if the borrower failed to pay his/her
debt.
Baliwen (2007), found that most of the cooperatives forced the borrowers to pay
or return immediately their loans or they will not be allowed anymore to avail of loans
once the loan was not used for the intended project
Agustin (2007) found out that the perceptions of member-borrowers towards loan
borrowing and repayment, the respondents mentioned that borrowing from the
cooperative is a way of patronizing its services being offered. The problems mostly
encountered by the respondents affecting their loan repayment are low prices of their
produce and they live far from the cooperative that they have a hard time going to the
cooperative.
Informal Channel of Agricultural credit
According to (PCAC 1979), on the other hand, the informal channel is composed
of private money lenders, relatives, friends, landlords and the rural businessmen. Usually
they constitute the bigger source of credit among farm families. The rate of interest
usually charges is 50-95 per cent. This is very much higher than the interest charged by
the formal channels which is usually fixed at 12 per cent a year for production loans.
Individuals
According to Snoodgrass and Wallace (1975) these loans are usually made
directly. Loans are made for real estate, capital investments, and operating funds. As a
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
9
result of the person-person responsibilities, there is no established method of loan
supervision (except by legal suit) or loan limit.
Trade Credit
Involves short-term, seasonal loans generally between agricultural producers and
either input suppliers or produce buyers (processors, traders, etc.). Financial institutions
are rarely involved. When provided as a loan, it tends to be limited to working capital (for
inputs) and is usually provided in-kind. Relationships between the buyers and sellers are
often more temporary and price-driven than in the case of contract farming and out
grower schemes (USAID, 2005).
According to Snoodgrass and Wallace (1975), the majority of merchants and
dealers lend capital resources for current production purposes. This is especially true of
business that manufactures and or sells agricultural inputs. The time over which credit is
extended by merchants and dealers depends upon many things. In some instances,
personal friendship is the key to the length of loan time. In other cases, harvest time
determines loan repayment.
According to Yubos (2006), unavailability of cash and poor access to financial
institutions/support is one of their constraints in production; thus, this is where
agricultural farm input suppliers are of great help to the farmers. The input suppliers
included the farm supplies establishments in Baguio City and La Trinidad providing farm
inputs to the farmers on credit basis, traders providing inputs to the farmers and in turn
buy the vegetables produce by the farmers, and the farmers who own the land leased by
the respondents and acts as the input suppliers and at the same time buyers of the
vegetables produce by the farmers.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
10
Yubos (2006), also found that farmers who entered into the supply system
agreement are tied up to the traders because they pay high interest on the loan. The high
cost of the farm inputs plus the high interest of the loan leaves a very small cash income
to the farmers. This situation forces the farmer to go back to the supplier and ask for
another or even more credit. The same is true for those who enter into the sharing
arrangement. Yubos also found that the traders deducts the value of the inputs and still
share with the net income. What would be left to the farmer may not even be enough to
pay for the cost of his labor used in the production activity.
Reasons why Borrowers Prefer Informal
Channels in their Financing Methods
PCAC (1979) stated some reasons why borrowers still prefer informal channels
because: (a) It is easy to get a loan without much paper work or red tape; (b) These
sources finance all the needs of the farmer for subsistence, educational, and medical
purposes; (c) Even if the interest is high, the lender gives more time for the farmer to
repay; and (d) Lenders also buy the crop at harvest time unlike the banks.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
11
METHODOLOGY
Locale and Time of the Study
This study was conducted in the different strawberry producing areas of La
Trinidad, Benguet specifically Betag, Puguis, Pico, Poblacion and Wangal. The research
was conducted from August to September 2010.
Respondents of the Study
There were 40 respondents from the strawberry farmers. There were 16
respondents from Betag, 6 from Puguis, 6 from Pico, 6 from Poblacion, and 6 from
Wangal. Ten financiers identified by the farmer respondents served as financier
respondents.
Research Instruments
The respondents were interviewed using an interview schedule.
Data Gathered
The data gathered were the sources of capital of strawberry farmers, the reasons
for choosing that source of capital, the conditions set by the financiers or financial
institutions, and the problems encountered by farmers choosing that source of capital.
Data Analysis
The data collected were analyzed using frequency and descriptive analysis.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
12
RESULTS AND DISCUSSION
Profile of the Farmer Respondents
Table 1 presents the general profile of the respondents in terms of age, gender,
civil status, educational attainment and household size of strawberry farmer respondents.
Age. Three or 7.5% of the respondents belonged to the 20 – 30 years old bracket,
16 or 40% belonged to the 31 – 40 years old bracket, 14 or 35% to the 41 – 50 years old,
6 or 15% to the 51 – 60 years old and only 1 or % to the 61 – 70 years old bracket. This
finding implies that majority of the farmers are still young.
Gender. Majority (80%) of the respondents were male and only 20% were female.
The result shows that more male were engaged in strawberry farming than female.
Civil status. Majority (97.5%) of the respondents were married and only 2.5%
were single. This finding indicates that majority of the strawberry farmers are married
and with family to support.
Educational attainment. Majority (42.5%) reached high school level or high
school graduates. Twelve or 30% reached elementary level or are elementary graduates.
Eight or 20% reached college level or are college graduates. Two or 5 % were vocational
graduates and one or 2.5% of the respondents has no formal education. This implies that
majority of the farmers in the different areas of La Trinidad, Benguet reached high school
level or are high school graduates.
Household size. Majority (65%) of the respondents had 2 – 5 number of
household members, 35% had 6 – 10 members. The result shows that majority of the
farmers had few household members.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
13
Table 1. Profile of farmer respondents
PARTICULAR FREQUENCY
PERCENTAGE
Age
20-30
3
7.50
31-40
16
40.00
41-50
14
35.00
51-60
6
15.00
61-70
1
2.50
TOTAL
40
100.00
Gender
Male
32
80.00
Female
8
20.00
TOTAL
40
100.00
Civil Status
Married
39
97.50
Single
1
2.50
TOTAL
40
100.00
Educational Attainment
No Formal Education
1
2.50
Elementary level
12
30.00
High School Level
17
42.50
Vocational
2
5.00
College Level
8
20.00
TOTAL
40
100.00
Household Size
2 to 5
26
65.00
6 to 10
14
35.00
TOTAL
40
100.00
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
14
Main Source of Income
All of the respondents’ main source of income is farming. This implies that all or
almost all of the strawberry farmers depend on farming as their main source of income.
Other Sources of Income
Aside from farming some farmers were engaged in other economic activities in
which nine or 22.5% of the respondents earn income from their own business such as
mini-store, retailing strawberry and some have boarding house, while seven or 17.5%
earn income by working as a laborer in other farms and four or 10% were supported by
other family members.
Table 2. Sources of income
SOURCE FREQUENCY
PECENTAGE
Main Source
Farming
40
100.00
Other source
Business
9
22.50
Labor
7
17.50
Employment
4
10.00
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
15
Years in Strawberry Farming
Table 3 presents the number of years in strawberry farming. Less than half
(42.5%) of the respondents were into strawberry production for six to ten years, and
fifteen (37.5%) for less than five years. Three (7.5%) for sixteen to twenty years and
another three (7.5%) had been producing strawberry for more than twenty one years. Two
(5%) of the respondents had been producing strawberry for eleven to fifteen years.
Results show that less than half of the farmers were into strawberry production for six to
ten years. The average number of years the respondents produced strawberry was 8.6
years.
Annual Income
Table 4 shows the annual income of farmers. Most (42.5%) of the respondents
had an average annual income of fifty thousand pesos and below, 14 (35%) had fifty to
one hundred thousand pesos and nine (22.5%) had one hundred thousand pesos and
above. This implies that most of the strawberry farmers had an average annual income of
fifty thousand pesos and below.
Table 3. Number of years in strawberry farming
NO. OF YEARS
FREQUENCY
PERCENTAGE
1 to 5
15
37.50
6 to 10
17
42.50
11 to 15
2
5.00
16 to 20
3
7.50
21 and above
3
7.50
TOTAL
40
100.00
Mean 8.6 yrs.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
16
Table 4. Annual Income of farmer respondents
INCOME (PESOS)
FREQUENCY
PERCENTAGE
below PhP.50,000
17
42.50
PhP.50,000-100,000 14 35.00
above PhP.100,000
9
22.50
TOTAL 40
100.00
Land Ownership
Majority (75%) of the respondents do not own the land they are cultivating, while
25% owned the land they are cultivating. Twenty or 66.67% are renting from Benguet
State University, eight or 26.67% are renting from private individuals and two or 6.67%
are cultivating the land owned by their family members or relatives. This implies that
majority of the respondents do not own the land the land they are cultivating. Results also
show that most of the farmers are renting from Benguet State University (Table 5).
Table 5. Land ownership
PARTICULARS FREQUENCY
PERCENTAGE
Owned 10
25.00
Not owned
30
75.00
TOTAL 40
100.00
Owner of area utilized in the production
BSU
20
66.67
Private
8
26.67
Relative
2
6.67
TOTAL 30
100.00
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
17
Average Area Cultivated by Strawberry Farmers
Table 6 shows the average area cultivated by strawberry farmers. Majority
(67.5%) of the respondents planted an area of 500 – 1,000 square meters. The area
planted by 12.5% ranged from 1,001 – 1,500 square meters, 10% planted an area of 1,501
– 2,000 square meters, 7.5% planted an area of 499 square meters and below while 2.5%
planted an area that ranged from 2,001 – 2,500 square meters. Result shows that majority
of the farmers cultivate strawberry in an area of 500 – 1,000 square meters. The average
area planted to strawberry by all the respondents was 807.18 square meters.
Distribution of Financier Respondents
Table 7 shows the financiers of the strawberry farmers. There were six or 60%
traders who finance strawberry farmers, one or 10% from Good Shepherd, 1 or 10% from
ECLOF (Ecumenical Church Foundation, Inc.), 1 or 10% from Card Bank and another
one or 10% Input Suppliers.
Table 6. Average area cultivated by strawberry farmers
AREA
FREQUENCY PERCENTAGE
(sq. m)
499 and below
3
7.50
500-1000 27
67.50
1001-1500 5
12.50
1501-2000 4
10.00
2001-2500 1
2.50
TOTAL 40
100.00
Mean= 807.18 sq.m
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
18
Table 7. Distribution of financier respondents
PARTICULAR FREQUENCY
PECENTAGE
Traders 6
60.00
Good Shepherd
1
10.00
Ecumenical church
foundation, Inc.
1
10.00
Card Bank
1
10.00
Input Suppliers
1
10.00
TOTAL 10
100.00
Profile of Financier Respondents
Table 8 presents the profile of the financier respondents as to gender and age.
Gender. Majority (70%) of the respondents were females and only 30% were
males. The result shows that more female were engaged in financing strawberry farmer.
Age. Half (50%) of the respondents belonged to the 41 – 50 year old bracket, 20%
are 51 – 60 year old and only 10% are 20-30 years old bracket. Result shows that
majority of the financiers were of middle to senior age.
Table 8. Profile of the financier respondents
PARTICULARS FREQUENCY
PERCENTAGE
Gender
Male
3
30.00
Female
7
70.00
TOTAL
100
100.00
Age
20-30
1
10.00
31-40
0
0
41-50
5
50.00
51-60
2
20.00
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
19
Source of Capital for Strawberry Production
Table 9 shows the source of capital for strawberry production. Strawberry farmers
sourced out their capital from various sources. Majority (60%) of the respondents
borrowed from traders, while 15% borrowed from Good Shepherd, 12.5% borrowed from
ECLOF (Ecumenical Church Foundation, Inc.), 7.5% borrowed from input suppliers and
2 or 5% borrowed from Card Bank. The findings implied that strawberry farmers vary
from the sources of capital. Moreover it can be recognized that traders play an important
role as informal financing source for many farmers.
Requirements of the Different Financiers in Lending Loan
Table 10 presents the requirements of the different financiers in lending.
Traders. All of the respondents who borrowed from traders pointed out that the
lenders based the amount of loaned on the area of farm they inspected and character of
the borrower is also considered because trust is an important requirement in financing.
The amount of loan lent by the traders is in proportion to the area. One requirement
imposed by the traders was that farmers should not sell their produce to other buyers
otherwise they will not be given financial assistance during the next cropping season.
Good Shepherd. Good Shepherd’s requirement in lending loan is that the farmer
should be a strawberry farmer who is an active member of “Duting Farmer’s
Association” and farm area inspection.
ECLOF. The requirements of ECLOF in lending loans are credit investigation,
papers or documents, collateral and should be a member of informal grouping of
farmers. Collaterals can be in the form of mortgage of real estate, physical properties
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
20
Table 9. Sources of capital of strawberry farmers
SOURCES
FREQUENCY
PERCENTAGE
Traders 24
60.00
Good Shepherd
6
15.00
ECLOF 5
12.50
Card Bank
2
5.00
Input Suppliers
3
7.50
TOTAL 40
100.00
Table 10. Requirements by the different financiers
REQUIREMENTS
TRADERS GOOD ECLOF CARD INPUT
SHEPHERD
BANK
SUPPLIERS
F % F % F % F % F %
Area
6
100
0
0
0
0
0
0
0
0
Character
6
100
0
0
0
0
0
0
1
100
C.I.
0
0
1
100
1
100
papers/
documents
0
0
1
100
0
0
Member
1
100
1
100
1
100
Collateral
1
100
TOTAL
1
100
1
100
such as house, car, appliances, gadgets and other farm equipments.
Card bank. The requirements of Card bank in lending loans are credit
investigation and the borrower should be a member of their informal grouping or cluster
grouping of farmers.
Input
suppliers. The respondent requirement in lending loan is the character of the
borrower because trust is an important requirement in financing.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
21
Reasons for Choosing the Sources of Capital
Table 11 shows the reasons of farmers for choosing the sources of capital for their
strawberry production.
Traders. Majority (71.17%) of the respondents chose traders as financier because
it provides sure market of their product, (29.17%) mentioned that they have no other
options or alternative financing source, (20.83%) mentioned that their product is use for
repayment not money, (16.67%) mentioned that it finance all the operational expenses,
(8.33%) mentioned that traders do not require collateral unlike other lenders and another
(8.33%) of the respondents reason is that the traders can provide high capital, while
(4.17%) mentioned that it is easy to get a loan without much paper works. This implies
that majority of the farmers chose traders as financier because it provides sure market of
their product because market for their product is one of their problems.
Good Shepherd. All respondents financed by Good Shepherd said they chose this
financier because it buys the produce in a fix price basis which is 65-75 pesos and
33.33% mentioned that it finances all the operational expenses. The major reason of all
the respondents for choosing Good Shepherd as their financier is that it buys the produce
in a fix price basis which is 65-75 pesos.
ECLOF. All of the respondents chose ECLOF as their financier because they can
sell product to other buyers, 80% of the respondents’ reason is it offers low interest on
loan, 40 % of the respondents reason is the lender gives more time for repayment, 20% of
the respondents’ reason is the lender finance all the operational expenses and another 20
% of the respondents reason is it is easy to get a loan. The major reason of all the
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
22
respondents for choosing ECLOF as their financier is that it they can sell their product to
other buyers.
Card bank. All of the respondents chose Card bank as financier because they can
sell product to others buyers, while 50 % mentioned that is it offers low interest rate on
loan. The major reason of all the respondents for choosing Card bank as their financier is
that they can sell product to other buyers.
Input suppliers. All of the respondents chose input suppliers as financier because
if finances all the operational expenses, the other 33.33% mentioned that the farmer can
sell product to others buyers, another 33.33% mentioned that lender gives more time for
repayment, and another 33.33% mentioned that it is easy to get a loan. The major reason
of all the respondents for choosing input suppliers as their financier is that it finances all
the operational expenses.
Amount of Capital Borrowed by Farmers
Table 12 presents the amount of capital borrowed by farmers. More than half
(54.2 %) of the respondents financed by traders borrowed 30,000 pesos and below, 25%
borrowed 30,001-60,000 pesos, 12.25% borrowed 90,001 pesos and above, while 8.33%
borrowed 60001-90,000 pesos.
Majority (60%) of the respondents financed by Good Shepherd borrowed 30,001-
60,000 pesos, while 40% borrowed 30,000 pesos and below.
Majority (60%) of the respondents financed by ECLOF borrowed 30,000 pesos
and below, while 20% borrowed 30,001-60,000, and another 20% borrowed 90,001 pesos
and above.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
23
Table 11. Reasons for choosing of source of capital
REASONS TRADERS
GOOD
ECLOF
CARD
INPUT
SHEPHERD
BANK
SUPPLIERS
F % F % F
% F % F %
No other options
14
29.17
0
0 0
0
0
0
0
0
Provides Sure market of
their product
19
71.17
0
0 0
0
0
0
0
0
Fix price
0
0
6
100 0
0
0
0
0
0
It finance all the
operational expenses
4
16.67
2
33.33 1
20
0
0
3
100
Easy to get a loan
1
4.17
1
20
0
0
1
33.33
Financiers give more time
for repayment
0
0
2
40
0
0
1
33.33
Low interest
0
0
4
80
1
5 0
0
0
No collateral
2
8.33
0
0
0
0
0
0
Product is use for
repayment not money.
5
20.83
0
0
0
0
0
0
The financier can provide
high capital.
2
8.33
0 0
0
0
0
0
Farmer can set the
repayment period.
0 0
0
0
0
0
The farmer can sell
product to others buyers
5 100
2
100
1
33.33
*Multiple response
All of the respondents financed by Card bank and input suppliers borrowed
30,000 pesos and below. For input suppliers it is in the form of farm inputs such as
fertilizer, insecticides, fungicides and others.
The result implies that farmers borrow 30,000 pesos and below, however, some
farmers borrow more than 30,000 pesos. However, the amount borrowed depends on the
area planted or cultivated.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
24
Table 12. Amount of capital borrowed by farmers
AMOUNT TRADERS
GOOD
SHEPHERD ECLOF
CARD
INPUT
BANK
SUPPLIERS
F % F
% F
% F % F %
30000 &
13 54.2
2
40
3 60 2 100 3 100
below
30001-60000
6
25
3
60
1 20
60001-90000
2 8.33
0 0
90001 &
3 12.5
1 20
above
TOTAL
24
100
5
100
5 100 2
100
3
100
Interest Rate According to Farmers
and Financier Respondents
Table 13 shows the interest rate according to farmer and financier respondents.
Traders. All of the respondents financed by traders said that there is no interest
rate fee they just deduct 20 pesos per kilograms from the buying price of the product.
However, all of the traders’ respondents said that they just deduct 5 pesos per kilogram
from the buying price of the product.
Results show that there is inconsistency or the answers are contradicting because
farmer respondents said that traders deduct 20 pesos per kilograms from the buying price
of the product while traders mentioned that only 5 pesos is deducted per kilogram.
Good Shepherd. All of the respondents financed by Good Shepherd said that there
is no interest rate fee, while 33.33% said that after paying all their debt, 3% from the
deliveries will be deducted and deposited in the savings account of farmers.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
25
Good Shepherd also mentioned that there is no interest rate fee because they just
want to have assurance of quality supply of strawberry. They just deduct 3% from the
deliveries after the borrower pay all their debt; it will be deposited in the savings account
of farmers.
ECLOF. Most (40%) of the respondents financed by ECLOF said that the
financier charge 2% interest rate fee and another 40% said that the financier charge 4%
interest rate fee while 20% said that 1% is the interest rate fee. However, ECLOF said
that they charge 4% interest rate fee which 2.6% is the interest, 0.4% is for the rebate and
1% for the collateral build up. This implies that some farmers financed by ECLOF are not
sure about the interest rate they are paying since their answer varies.
Card Bank. All of the respondents financed by Card bank said that the financier
charge 2% interest rate fee. Card bank also mentioned that they charged 2% interest rate
per month. The result implies that all of the farmers financed by Card bank know the
interest fee they are paying.
Input Suppliers. All of the respondents financed by suppliers said that there is no
interest but they have an agreement to share equally their net income with the input
supplier. Input suppliers also said that there is no interest fee but they have an agreement
to share equally with the net income of the farmers.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
26
Table 13. Interest rate according to farmers and financier respondents
FARMERS FINANCIER
INTEREST TRADERS GOOD ECLOF*
CARD
INPUT
TRADERS GOOD ECLOF
CARD
INPUT
RATE
SHEPHERD*
BANK SUPPLIERS
SHEPHERD*
BANK SUPPLIERS
F %
F % F
%
F
%
F % F
% F % F
%
F
%
F %
0
24
100
6
100
0
0 0
0
0
0
6
100
1
100 0 0 0 0
0
0
1%
0
0
1
20 0
0
0
0
0
0 0 0 1 100
0
0
2%
0
0
0
0 2 100
0
0
1
100 0 0
0
0
3%
2
33.33 2
40
0
0
1 100
0
0
4%
2
40
0
0
0
0
50-50
3
100
1
100
Sharing
TOTAL
24
100
5
100 2 100
3
100
6
100
1
100 1 100 1 100
1
10 0
*Multiple Response
26
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
27
Service Fee According to Farmers
and Financier Respondents
Table 14 shows the service fee according to farmers and financier respondents.
All of the respondents financed by traders, Good Shepherd and input suppliers said that
there is no service fee charge. In addition, majority (60%) of the respondents financed by
ECLOF said that the lender charges 3% for the service fee while 40% of the respondents
are not sure if the lender charges service fee. All of the respondents financed by Card
bank said that the lender charged 4% for the service fee.
All of the traders’ respondents, Good shepherd and input suppliers said that there
is no service fee charge while ECLOF charge 3% for the service fee and Card bank
charge 4% for the service fee.
This implies that informal lenders such as traders, Good Shepherd and input
suppliers do not charge service fee while formal lenders such as ECLOF and Card bank
charge service fee at 3-4%.
Benefits Derived by Farmers
Table 15 shows the benefits derived by farmers from their financiers.
Traders. All of the farmer respondents mentioned that trader as financier, finance
all the farm operation expenses, more than half (58.33%) said that during off-season they
can divert loan to non-farm activities, (25%) of the respondents can avail additional
capital, (12.5%) of the respondents said that the trader finances some of the non-farm
needs of farmer.
Good Shepherd. All of the farmer respondents mentioned that Good Shepherd as
financier, provide them a sure market and a fix price of produce which is 65-75 pesos,
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
28
50% of the respondents said that they derived rebates in the form of saving account,
33.33% of the respondents benefit is it financed all the needs of the farmers such as they
can borrow money during their times of need, 16.67% of the respondents benefits is that
it provides a way for spiritual growth because Good Shepherd conducts bible reflection.
This implies that all of the respondents benefit for choosing Good Shepherd as financer is
that the financer buys the produce in a fix price basis which is 65-75 pesos.
ECLOF. All of the farmer respondents mentioned that having ECLOF as financier
gives them freedom to sell product to others buyers, 60% of the respondents mentioned
that this financier finances their farm operational expenses, 40% derived rebates or
savings. This implies that all of the respondents’ benefit for choosing ECLOF as financier
is that aside from the financial assistance in farm operation they have the freedom to sell
product to others buyers.
Card bank. All of the farmer respondents mentioned that having Card bank as
financier gives them freedom to sell product to others buyers, 50% of the respondents
mentioned that they derived rebates or savings. This implies that all of the respondents
benefit for choosing Card bank as financier gives them freedom to sell product to others
buyers aside from the financial assistance in farm operation.
Input suppliers. All of the farmer respondents mentioned that input suppliers as
financier finances all the farm operational expenses, 66.67% mentioned that input
suppliers finance all the needs of the farmers such as they can borrow money during their
times of need, 33.33% can avail additional capital and another 33.33% have the freedom
to sell product to others buyers. This implies that all of the respondents derived benefit
from suppliers as it finances all the farm operational expenses.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
29
Table 14. Service fee according to farmers and financier respondents
FARMERS FINANCIER
SERVICE TRADERS GOOD ECLOF*
CARD
INPUT
TRADERS GOOD ECLOF CARD
INPUT
FEE
SHEPHERD
BANK SUPPLIERS
SHEPHER
BANK SUPPLIERS
D
F % F % F
%
F
% F % F % F %
F
%
F
% F %
None/not
24
100
6
100
2
40
0
0
3
100
6
100
1
100
0 0
0 0
1
100
sure
3%
3
60
0
0
1 100
0 0
4%
2
100
1 100
TOTAL 24
100 6
100
5
100
2
100
3
100
6
100 1
100
1 100
1 100
1
100
*Multiple Response
29
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
30
Table 15. Benefits derived by farmers’ respondents
BENEFITS TRADERS
GOOD
ECLOF CARD
INPUT
SHEPHERD
BANK
SUPPLIERS
F % F % F % F % F %
Fix price
0
0
6
100
0
0
0
0
0
0
Finance
farm
24
100
0
0
3
60
0
0
3
100
operation
Income
during off
14
58.33
0
0
0
0
0
0
0
0
season
rebates
0
0
3
50
2
40
1
50
0
0
Finance all
3
12.5
2
33.33
0
0
0
0
2
66.67
the needs
additional
6
25
0
0
0
0
0
0
1
33.33
capital
Freedom
0
0
5
100
2
100
1
33.33
Spiritual 1
16.67
Financiers Actions to Prevent Delinquent Accounts
Table 16 shows the financiers actions to prevent delinquent accounts. All of the
financier respondents said that in order to prevent delinquent accounts they have to do
follow-up or monitoring. In addition, Good Shepherd mentioned that imposing penalty or
suspension for acquiring financial assistance are actions to be undertaken to prevent
delinquent accounts. On the other hand Card bank said that legal action should be done.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
31
Table 16. Financiers actions to prevent delinquent accounts
ACTIONS TRADERS
GOOD ECLOF
CARD
INPUT
SHEPHERD
BANK
SUPPLIERS
F % F
% F
% F % F %
Follow up/
6 100 1
100 1
100 1 100 1 100
monitoring
Legal
0
0
1
100
Penalty/
1 100
suspension
TOTAL 6
100
1
100
1
100
Penalties Imposed by Financiers on Late
Payments According to Farmer and
Financier Respondents
Table 17 shows the penalties imposed by financiers according to farmer and
financier respondents.
All of the farmer respondents said that traders, Good Shepherd, Card bank and
input suppliers do not charge penalty on late payments of debt. All of the traders, Good
Shepherd, Card bank and input suppliers also mentioned that they do not charge penalty
on late payments of debt. For the farmer respondents financed by ECLOF, majority
(60%) of the respondents said that ECLOF do not charge penalty on late payment, while
40% of the respondents said that the financier charge penalty on late payments. One of
the two respondents said that ECLOF charge 3% charge for late payments of debts and
the other one said that the financier charge 5% for late payments of debt. ECLOF
mentioned that they charged 5% per month penalty for late payments of debt. This
implies that those farmers financed by ECLOF are not aware of the rules and regulations
of the financier (ECLOF) on late payment.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
32
Table 17. Penalties imposed by financiers on late according to farmers and financier respondents
FARMERS FINANCIER
PARTICULARS TRADERS
GOOD
ECLOF* CARD
INPUT
TRADERS GOOD ECLOF CARD INPUT
SHEPHERD
BANK
SUPPLIERS
SHEPHERD
BANK
SUPPLIERS
F % F
% F % F % F % F % F % F % F % F %
Impose penalty
0
0
0
0
2
20
0 0
0
0
0
0
0
0
1 100 0 0
0
0
Do not impose
24
0
6
0
3
60
2 100
3
100
6 100
1
100
1 100
1
100
penalty
TOTAL 24
100
6
100
5
60
2
100
3
100
6
100
1
100
1
100
1
100
1
100
If yes, how
much?
3 %
1
50
0 0
5 %
1
50
1 100
TOTAL
2
100
1
100
*Multiple Response
32
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
33
Repayment Conditions According to
Farmer and Financier Respondents
Table 18 shows the repayment conditions according to farmer and financier
respondent. All of the farmer respondents said that traders, Good Shepherd, Card bank
and input suppliers do not charge penalty on late payments of debt. In addition, all of the
traders, Good Shepherd, and input suppliers also mentioned that they do not force their
borrowers to pay their debt on time. On the other hand, ECLOF and Card bank
mentioned that they force their borrowers to pay their loan or debt on time to prevent
delinquent accounts and this is the policy imposed by almost banks. For the farmer
respondents financed by ECLOF, majority (60%) of the respondents said that ECLOF do
not charge penalty on late payment, while 40% of the respondents said that the financier
charge penalty on late payments. One of the two respondents said that ECLOF charge 3%
charge for late payments of debts and the other one said that the financier charge 5% for
late payments of debt.
This implies that informal lenders do not force their borrowers to pay loan on time
while formal lenders force their borrowers to pay loan on time.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
34
Table 18. Repayment conditions according to farmers and financier respondents
FARMERS FINANCIER
PARTICULARS TRADERS
GOOD
ECLOF* CARD
INPUT
TRADERS GOOD ECLOF CARD INPUT
SHEPHERD
BANK
SUPPLIERS
SHEPHERD*
BANK
SUPPLIERS
F % F
% F % F % F % F % F % F % F % F %
Enforce
0
0
0
0
3
60
2 100
0
0
0
0
0
0
1 100 1 100
0
0
Do not enforce
24
100
6
100
2
40
3
100
6
100
1
100
1
100
TOTAL
24 100 6 100 1 100 2 100 3 100 6 100 1 100 1 100 1 100 1 100
*Multiple Response
34
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
35
Factors that Affects Payment on Loan
Table 19 shows the factors that affect farmers on paying their loan. All of the
respondents financed by traders, Good Shepherd, Card bank and input suppliers and 40%
finance by ECLOF said that natural calamities affect them in paying their debt; On the
other hand, 66.67% of the respondents financed by traders said that low price of their
produce affect them in paying their debt. This condition is also true to the 60% financed
by ECLOF and those financed by Card bank. Forty percent of those financed by ECLOF
mentioned that the term of loan affects them in paying their debt. This implies that the
major factors affect payment on loan is the natural calamities which may affects volume
and quality of produce and maybe the price. Secondary factor is the low income due to
low price of strawberry.
Reason for Delayed Payment on Loans
Table 20 shows the reasons for delayed payment on loans. Some (29.17%) of the
farmer respondent financed by traders mentioned that loss of production is the reason for
delayed in paying their debt while 4.17% said that bankruptcy is the reason for delayed
payment. Some (16.67%) of the farmer respondent financed by Good Shepherd and
(20%) finance by ECLOF also mentioned that loss of production is the reason for delayed
in paying their debt. On the other hand, 20% of the respondents financed by ECLOF
mentioned that their co-maker cannot pay their debt because as a member of the cluster
they should complete the payment. In addition, majority (50%) of the respondent
financed by Card bank said that no income during the due date which is one week after
receiving the loan is the reason for delayed in paying their debt and another 50% of the
respondent said that their low income due to the low price of their produce is the reason
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
36
Table 19. Factors that affects payment on loan
FACTORS TRADERS
GOOD
ECLOF* CARD INPUT
*
SHEPHERD
BANK*
SUPPLIERS
F % F % F % F % F %
Term of
0
0
0
0
2
40
2
100
0
0
loan
Price
16 66.67
0
0
3
60
2
100
0
0
Calamities
24 100
6
100
2
40
2
100
3
100
TOTAL 6
100
3
100
*Multiple Responses
Table 20. Reasons for delayed payment on loans
REASONS TRADERS
GOOD
ECLOF CARD INPUT
SHEPHERD
BANK
SUPPLIERS
F % F % F % F % F %
Loss of
7
29.17
4
16.67
1
20
0
0
0
0
production
No income
0
0
0
0
1
50
0
0
Low
0
0
0
0
1
50
0
0
income
co maker
0
0
1
20
0
0
cannot pay
Bankruptcy 1
4.17
1 33.33
TOTAL
5
100
2
100
for delayed in paying their debt. Furthermore, less than half (33.33%) of the respondents
financed by input suppliers mentioned that bankruptcy is the reason for delayed payment.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
37
Repayment Period and Mode of Payment
According to Farmer and Financier
Respondents
Table 21 presents the repayment period and mode of payment according to farmer
and financier respondents.
All of the farmers’ respondents financed by traders, Good Shepherd and input
suppliers mentioned that repayment period is within the harvest period, the produce serve
as the payment for loans borrowed from traders and Good Shepherd. In addition, all of
the respondents financed by ECLOF mentioned that the repayment period is maximums
of 8 months and the mode of payment is through lump sum payment which can be pay on
installment basis. Furthermore, the entire farmer respondents financed by Card bank
mentioned that the repayment period is six months to one year depending on the terms of
loan. The respondents also added that the mode of payment is weekly.
All of the traders’ respondents, Good Shepherd and input suppliers mentioned that
repayment period are within the harvest period, the product served as the payment for the
loans borrowed from traders and Good Shepherd. ECLOF mentioned that the repayment
period is maximums of eight months and the mode of payment is through lump sum
payment. Card bank mentioned that the repayment period is six months to one year
depending on the terms of loan and the mode of payment is weekly.
The finding implies that the repayment period for loans borrowed from traders,
Good Shepherd and input suppliers is within the harvest period while formal lenders like
ECLOF and Card bank sets their own repayment period depending on the type of loan.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
38
Table 21. Repayment period and mode of payment according to farmers and financier respondents
FARMERS FINANCIER
PARTICULARS TRADERS
GOOD
ECLOF CARD INPUT
TRADERS GOOD ECLOF CARD INPUT
SHEPHERD
BANK
SUPPLIERS
SHEPHERD*
BANK
SUPPLIERS
F % F
% F % F % F % F % F % F % F % F %
Repayment
Period
Harvest
24
100
6
100
0
0 0
0
3
100
6 100
1
100
0 0 0 0
1
100
max 8
5
100 0
0
1 100 0 0
months
6mo-1yr
2
100
1
100
TOTAL
24 100
6 100 5 100 2 100
3 100 6 100
1 100 1 100 1 100
1 100
Mode
Harvest
24
100
6
100
0
0 0
0
3
100
6 100
1
100
0 0 0 0
1
100
Weekly
0
0 2
100
0 0 1 100
38
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
39
Collection Technique Imposed by Financier Respondents
Table 22 shows the collection techniques imposed by financier respondents. All
of the traders and Good Shepherd respondents mentioned that the collection technique is
just waiting for the deliveries of strawberry by the borrowers. In addition, ECLOF and
input suppliers mentioned that they just wait for the borrowers to pay their debts. On the
other hand, Card bank mentioned that the collection technique is through Card bank
collection centers.
Problems Mentioned by Farmer Respondents
Table 23 shows the problems encountered by farmers. Most (91.67%) of the
respondents financed by traders encountered problems such as they cannot sell their
product to other buyers who even offers a higher price than the traders, while 16.67%
mentioned that the loan they availed is insufficient or is not enough because the borrowed
fund is not used according to purpose. This implies that most of the farmers financed by
traders encountered problems such as they cannot sell their product to other buyers
because they are bound to sell their produce to the traders as part of their agreement.
One half (50%) of the respondents financed by Good Shepherd encountered
problems such as delayed release of loan; they will have to wait for three weeks before
they will get their loan, 33.33% mentioned that the loan they avail is insufficient or not
enough because the fund is not spent according to purpose, 33% said that they encounter
problems during deliveries because it is an additional cost to the farmers and another
33.33% mentioned that they had lots of meeting held by Good Shepherd, thus disturbing
them from farm activities, while 16.67% said that they need to meet the quota imposed
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
40
by Good Shepherd. This implies that half of the farmers financed by Good Shepherd
encountered problems such as delayed release of loan.
Furthermore, majority (60%) of the respondents financed by ECLOF encountered
problems such as cannot easily avail loan because of many paper works or too many
requirements resulting to delayed release of loans, 20% said that the loan they avail is
insufficient or not enough and the other 20% delayed payment is one of their problem
because some member of their cluster group cannot pay on time. This implies that less
than half of the farmers finance by ECLOF cannot avail loan because of many paper
works or too many requirements resulting to delayed release of loans.
One half (50%) of the respondents financed by Card bank mentioned that they
cannot easily avail loan because of so many paper works resulting to delayed release of
loan, another 50% mentioned that the amount loaned is not enough, while 33.33% said
that they cannot pay their debt because they have no income during due date which is one
week after receiving the loan. This implies that one half of the farmers financed by Card
bank cannot easily avail loan because of so many paper works and the loan released is
limited.
Majority (66.67%) of the respondents financed by input-suppliers encountered
problems such as equal share of net profit with the financier even if the profit is low,
while 33.33% said that the loan they avail is insufficient or not enough. This implies that
majority of the farmers financed by input suppliers share equally their net profit with the
financier even if the profit is low.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
41
Table 22. Collection technique imposed by financier respondents
TECHNIQUES TRADERS
GOOD
ECLOF
CARD
INPUT
SHEPHERD
BANK
SUPPLIERS
F % F
% F
% F % F
%
wait for
deliveries
6
100 1
100 0
0
0
0
0
0
Through
collection
centers
0
0
1
100
0
0
lender just wait
for cash
payment
1
100
1
100
TOTAL 6
100 1
100 1
100
1
100
1 100
Table 23. Problems mentioned by farmer respondents
PROBLEMS TRADERS*
GOOD ECLOF
CARD
INPUT
SHEPHERD*
BANK*
SUPPLIERS
F % F % F
%
F
% F %
Delayed release of
loan
0
0
3
50
3 60 1
50
0
0
Insufficient
4 16.67
2 33.33
1 20 1
50
1 33.33
Can’t sell to other
22 91.67
0
0
0 0 0
0
0
0
Deliveries 2 33.33
0 0 0
0
0
0
Equal share of net
profit
0
0
0 0 0
0
2 66.67
Lots of meeting
2 33.33
0 0 0
0
Delaying in
payment 0
0
1 20 0
0
No income during
due date
0
0
1 33.33
Quota
1 16.67
TOTAL
5 100
3 100
*Multiple Responses
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
42
Problems Encountered by Financier
Respondents in Granting Loan
Table 24 shows the problems encountered by financier respondents in granting
loan. All of the traders mentioned that natural calamities is the major problem
encountered because farmers cannot pay their debt, while 83.33% of the respondents
said that some of the farmers sold their produce to other buyers or non- commitment to
contract.
The problem of Good Shepherd is similar with the traders that farmers are selling
their produce to other buyers or non-commitment to the contract thus cannot collect loans
and some members are inactive or not even attending some meetings.
ECLOF encounter problems like delinquent accounts due to their poor
production. This is also the problems of Card bank, the delinquent account maybe
attributed to poor harvest, low yield due to natural calamities which is beyond their
control over the farmers. In addition, the suppliers who financed farmers encountered the
same problems as to delayed payment of loan by farmers because of natural calamities.
Table 24. Problems encountered by financier respondents in granting loans
PROBLEMS TRADERS
GOOD
ECLOF CARD
INPUT
SHEPHERD
BANK
SUPPLIERS
F % F % F % F % F %
Non
commitment
5
83.33
1
100
0
0
0
0
0
0
to contract
Delinquent
0
0
0
0
1
100
1
100
0
0
Calamities
6
100
0
0
1
100
1
100
Inactive
1
100
members
TOTAL
1
100
1
100
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
43
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted in the different strawberry producing areas of La
Trinidad, Benguet specifically Betag, Puguis, Pico, Poblacion and Wangal from August
to September 2010. A total of 40 farmers and 10 financiers served as the respondents of
the study. The data needed were gathered through personal interview with the
respondents and it was analyzed using frequency and descriptive analysis. The study aims
to identify the source of capital of strawberry farmers, identify the reasons for choosing
that source of capital, the conditions set by the financiers or financial institution, to
identify the problems encountered by farmers in using that source of capital and to
recommend the best source of finance to be used by strawberry farmers.
Most of the farmer respondents are at their middle ages 31-40 years old, male,
married, and had formal education up to college degree. Strawberry farmers sourced out
their capital from various sources.
Majority of the farmers chose traders as financier because it provides sure market
of their product. All of the respondents reason for choosing Good Shepherd as financier
because it buys the product at fix price basis which is 65-75 pesos. All of the respondent
reason for choosing Ecumenical Church Foundation, Inc. (ECLOF) and Card bank is that
the farmer can sell product to others buyers. All of the respondents chose input suppliers
as financier because it finances all the operational expenses.
The result also implies that farmers borrow 30,000 pesos and below, however,
some farmers borrow more than 30,000 pesos. However, the amount borrowed depends
on the area planted or cultivated.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
44
All of the farmers financed by traders said that there is no interest rate fee they
just deduct 20 pesos per kilograms from the buying price of the product, however, results
show that there is inconsistency or the answers are contradicting because traders
mentioned that only 5 pesos is deducted per kilogram from the buying price of the
product. All of the farmers financed by Good Shepherd said that there is no interest rate
fee they just deduct 3% from the deliveries after the borrower pays all their debt; it will
be deposited in the savings account of farmers. Some of the farmers finance by ECLOF is
not sure about the interest rate they are paying, since their answer varies. ECLOF
mentioned that they charge 4% interest rate fee which 2.6% is the interest, 0.4% is for the
rebate and 1% for the collateral build up. Card bank charged 2% interest rate per month.
All of the farmers financed by Card bank said that the financier charge 2% interest rate
fee, it implies that all of the farmers financed by Card bank know the interest rate they are
paying. All of the farmers financed by input suppliers said that there is no interest fee but
they have an agreement to share equally their net profit with the input suppliers.
Results show that informal lenders such as traders, Good shepherd and suppliers
do not charge service fee while formal lenders such as ECLOF and Card bank charge
service fee at 3-4% respectively. Majority of the farmers financed by ECLOF said that
the lender charged 3% for the service fee and some of them are not sure are not sure if the
lender charge service fee. All of the farmers finance by Card bank said that there the
lender charged 4% for the service fee.
The requirements of traders and input suppliers in lending loans are area or farm
inspection and character of the borrower is also considered because trust is an important
requirement in financing. The amount of loan lent by the traders is in proportion to the
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
45
area. In addition, Good Shepherd’s requirement in lending loan is that the farmer should
be a strawberry farmer who is an active member of “Duting Farmer’s Association” and
farm area inspection. Furthermore, the requirements of ECLOF and Card Bank in lending
loans are credit investigation, papers or document, and should be a member of their
informal grouping or cluster grouping of farmers. Except for ECLOF they require
collateral.
Most of the farmers financed by traders cannot sell their product to other buyers
who even offer a higher price than the traders. One half of the farmers financed by Good
shepherd mentioned that the release of loan is delayed. In addition, majority of the
farmers finance by ECLOF cannot easily avail loan because of many paper works or too
many requirements resulting to delayed release of loans. One half of the farmers financed
by Card bank encountered problems such as delayed release of loan and the loan released
is limited. Furthermore, majority of the respondents financed by input supplier share
equally their net profit with the financier even if the profit is low.
Conclusions
The following conclusions were drawn from the findings of the study.
1. Strawberry farmers sourced out their capital from various sources such as
traders, Good Shepherd, Ecumenical Church Foundation, Inc. (ECLOF), Card bank and
input suppliers.
2. The major reason of farmers for choosing traders as financier is that it provides
sure market of their product. In addition, farmers for chose Good Shepherd as their
financier because it buys the produce in a fix price basis. Farmers chose formal lenders
such ECLOF and Card bank as their financier because they can sell product to others
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
46
buyers. Farmers chose input supplier as their financiers because it finances all the
operational expenses.
3. Traders do not charge interest rate but deduct an amount from the buying price,
however, the answers of the farmers are contradicting because traders mentioned that
they just deduct 5 pesos per kilogram from the buying price of the produce while farmers
mentioned that traders deduct 20 pesos per kilogram from the buying price of the
produce.
4. Informal lenders such as traders, Good Shepherd and input suppliers do not
charge service fee while formal lenders such as ECLOF and Card bank charge service fee
at 3% to 4% respectively.
5. Traders and input suppliers based the amount loaned on the area inspected and
character of the borrower is also considered because trust is an important requirement in
financing.
6. Good Shepherd’s requirement in lending loan is that the farmer should be a
strawberry farmer who is an active member of “Duting Farmer’s Association” and farm
area inspection.
7. The requirements of ECLOF and Card bank in lending loans are credit
investigation, papers or document, and should be a member of their informal grouping or
cluster grouping of farmers, ECLOF also requires collateral.
8. Farmers financed by traders cannot sell their product to other buyers who even
offer a higher price than traders. Farmers financed by Good Shepherd, ECLOF and Card
bank encountered problems such as delayed release of loan and the loan they avail is
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
47
insufficient. Farmers financed by input suppliers share equally their net income with the
input supplier even if the profit is low.
9. The best financing system identified by farmers is sourcing out funds from
Good Shepherd because it has no interest rate fee, no service fee, they are also provided
with sure market on a fix price of produce at 65-75 pesos, farmers also derived rebates in
the form of saving account, they can borrow money during their times of need and the
financier also provides a way for spiritual growth because Good Shepherd conducts bible
reflection.
Recommendations
Based on the findings, it is therefore recommended that farmers should look for a
better alternative source of credit where the conditions set by the lender is fair. It is also
recommended that banks should be flexible in giving loans to the farmers. It is also
recommended for the farmers to join or organize cooperative so that it could provide the
credit needs of the farmers or look for market similar with Good Shepherd where the
buyer finance and at the same time purchase output at a fair price.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
48
LITERATURE CITED
AGUSTIN, F. B. 2007. Practices and perceptions of member borrowers of Bad-ayan
Buguias Development Multipurpose Cooperative towards loan borrowing and
repayment. BS Thesis. Benguet State University, La Trinidad, Benguet. P. 40.
BALAKI, E. T. 1992. Crop protection and cultural management strategies of strawberry.
Extension Office Publication. Benguet State University, La Trinidad, Benguet. P.
1.
BALIWEN, M. D. 2007. Loan delinquency control practices of primary cooperatives in
Kapangan, Benguet. BS Thesis. Benguet State University, La Trinidad, Benguet.
P.1.
BANGSOYAO, M. D. 2009. Causes of loan delinquency and control practices of La
Trinidad Vegetable Trading Post Multipurpose Cooperative, Benguet State
University, La Trinidad, Benguet. P. 25.
DEQUIT, F. J. 2003. Attitudes of members of selected cooperatives in La Trinidad,
Benguet towards borrowing and repaying of loans. BS Thesis. Benguet State
University, La Trinidad, Benguet. P.18.
KIWA-EN, D.G. 2007. Factors affecting loan payment delinquency of La Trinidad
Vegetable Trading Post Multipurpose Cooperative in La Trinidad, Benguet. BS
Thesis. Benguet State University, La Trinidad, Benguet. Pp. 5-8.
KURATKO, D. F. and , R. M. HODGETTS. 2007. Entrepreneurship: Theory, Process,
Practice. 7th Edition. Thomson Corporation. Canada. P.541.
LANGADAN, T. E. 1997. Marketing Practices of Vegetable farmers in Atok, Benguet.
Highland Express Vol. 8. P.5
MORTENSON, W.P. and R.A. LUENING. 1972. The Farm Manangement Handbook.
5th Edition. The Interstate Printers and Publishers, Inc. Pp. 191-192.
PRESIDENTIAL COMMITTEE ON AGRICULTURAL CREDIT (PCAC). 1979.
Agricultural Credit for Rural Progress: Concepts and procedures. Pp. 22-45.
SAYAP, E. C. 2006. Cost and return analysis of strawberry production in La Trinidad,
Benguet, BS Thesis. Benguet State University, La Trinidad. Benguet. P . 25-26.
SNODGRASS, M. and L. WALLACE. 1975. Agriculture Economics and Resource
Management. New Jersey. Prentice-Hall, Inc. Pp. 91-103.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
49
SUPA, M. M. 2005. Financial management practices of financial intermediaries in
Mountain Province. BS Thesis. Benguet State University, La Trinidad, Benguet.
Pp.42-45.
TAAG, M. P. 2009. Effects of the credit policy of the Universal Multipurpose
Cooperative (UMPC) in the granting and collection of loans. BS Thesis. Benguet
State University, La Trinidad Benguet. P#.41.
USAID. 2005. Value Chain Finance. issue 2. Retrieve July 11, 2010 from
http://www.valuechains.org. P#.3.
WIKIPEDIA. 2010. Finance. Retrieved July 11, 2010. from http://en. wikipedia.
Org.wiki/Finance
YUBOS, N. P. 2006. A documentation of traders, input suppliers and farmers’ input –
supply relationships in Madaymen, Kibungan. BS Thesis. Benguet State
University, La Trinidad, Benguet. Pp#.33-34.
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
50
APPENDICES
APPENDIX A
Letter to the Respondents
Republic of the Philippines
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
September 2010
Sir/Madam:
I am a fourth year student taking up Bachelor of Science in Agriculture major in
Agricultural Economics at Benguet State University. To fulfill my field of study, I am
required to conduct this research titled, “An Assessment on the Source of Capital by
Strawberry Farmers in La Trinidad, Benguet”. In this connection, may I therefore ask
your time, your honesty, and sincerity in giving the needed information about my study.
Thank you very much! God bless you.
Respectfully yours,
RASHID B. LOKINES
Student Researcher
Noted by:
JOVITA M. SIM
Thesis Adviser
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
51
APPENDIX B
Letter to the Manager of ECLOF
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
September 2010
The Manager
Ecumenical Churches Foundation, Inc.
358 Magsaysay Ave., Baguio City
Sir/Madam:
Warm Greetings!
I, Rashid B. Lokines, a student of Benguet State University taking up Bachelor of
Science in Agriculture major in Agricultural Economics. I am presently conducting a
research titled “AN ASSESSMENT ON THE SOURCE OF CAPITAL BY
STRAWBERRY FARMERS IN LA TRINIDAD, BENGUET” as a requirement for the
degree.
In this connection, may I request permission to gather information regarding my study by
interviewing you or one of your staff?
Thank you very much for your favorable action regarding this request. Your action will
be highly appreciated.
Sincerely yours,
RASHID B. LOKINES
(Student Researcher)
Noted:
JOVITA M. SIM
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
52
Adviser
APPENDIX C
Letter to the Manager of CARD BANK
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
September 2010
The Manager
CARD BANK
Km.4 Balili, La Trinidad, Benguet
Sir/Madam:
Warm Greetings!
I, Rashid B. Lokines, a student of Benguet State University taking up Bachelor of
Science in Agriculture major in Agricultural Economics. I am presently conducting a
research titled “AN ASSESSMENT ON THE SOURCE OF CAPITAL BY
STRAWBERRY FARMERS IN LA TRINIDAD, BENGUET” as a requirement for the
degree.
In this connection, may I request permission to gather information regarding my study by
interviewing you or one of your staff?
Thank you very much for your favorable action regarding this request. Your action will
be highly appreciated.
Sincerely yours,
RASHID B. LOKINES
(Student Researcher)
Noted:
JOVITA M. SIM
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
53
Adviser
APPENDIX D
Letter to the Manager of Good Shepherd Convent
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT
Benguet State University
La Trinidad, Benguet
September 2010
The Manager
Good Shepherd Convent
15 Gibraltar Road, Baguio City
Sir/Madam:
Warm Greetings!
I, Rashid B. Lokines, a student of Benguet State University taking up Bachelor of
Science in Agriculture major in Agricultural Economics. I am presently conducting a
research titled “AN ASSESSMENT ON THE SOURCE OF CAPITAL BY
STRAWBERRY FARMERS IN LA TRINIDAD, BENGUET” as a requirement for the
degree.
In this connection, may I request permission to gather information regarding my study by
interviewing you or one of your staff?
Thank you very much for your favorable action regarding this request. Your action will
be highly appreciated.
Sincerely yours,
RASHID B. LOKINES
(Student Researcher)
Noted:
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
54
JOVITA M. SIM
Adviser
APPENDIX E
Interview Schedule
A. BACKGROUND INFORMATION
Name (optional):__________________________ Age: _________
Gender: _________ Marital Status: _________ Household size: _______________
Main source of income: ________________ other source of income: _______________
Annual Household income: _____________
Educational Attainment:
____ No formal education
____ Elementary graduate
____ High School
____ Vocational
____ College graduate ____Others,
specify
How many years in farming strawberry? ________
B. FARM PROFILE
Farm Location: ________________________________________
How many square meters do you cultivate for strawberry? ______
Do you own the land you are cultivating? ( ) yes ( ) no
If no, whose land are you renting? _________________________
How much do you pay for rental? _________________________
Sources of capital:
____ Loans from bank
____ Loans from cooperative
____ Trade credit/ (agents)
____ Borrowed from relatives
____ Lending institutions
____ Personal savings
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
55
others, specify_____________
What are your reasons for choosing that source of finance?
____ It offers low interest rate unlike other financers
____ It offers lower service fee unlike other financers
____ It is a way of patronizing its services being offered.
____ It’s easy to get loan without much paper work
____ It finance all the needs of the farmer for subsistence, educational, and
medical purposes
____ They are giving patronage refund.
____ the lender gives more time for the farmer to repay
____ Lenders also buy the crop at harvest time unlike the banks
____ Others, specify ________________________________________________
How much loan do you borrow? ________
What are the conditions set by financiers or financial institutions?
Terms of interest rate: _________________
Rate of service fee: _________________
What are the requirements for borrowing loans?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
What are the benefits derived in from that source of finance?
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
56
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
What are the problems you encounter in from that source of finance?
____ Foreclosure of collateral
____ They lend insufficient amount of capital
____ They offer high interest rate
____ They offer high service fee
____ It’s not easy to get loan because of so much paper work.
____ the lender does not give more time for the farmer to repay
____ the farmer cannot sell his produce to other buyers with higher price
____ delaying in payment
____Others, specify
Do they charge penalty on late payments? ( ) yes
( ) no
if yes, how much? ______
Are you forced to pay your loan on time, why? ( ) yes
( ) no
Which of the following affects you in paying your debt?
______Charges
______Term of loan
______Others, please specify ________________
Which mode of collection on loan affects you in paying your debts?
______Daily
______Weekly
______ Semi-monthly
______Monthly
______Lump sum
others specify_______
What is/ are your reasons for delayed payments of your loan?
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
57
______Loss of production
______Bankruptcy ______High
interest
______Insufficient fund
______Low prices of strawberry
Others, please specify ________________
APPENDIX F
Interview Schedule (for financiers)
A. BACKGROUND INFORMATION
Institution:
___________________________
Address: _____________________________
Name (optional):_______________________
Age: _____
Position: _____________________________
Sex: _____
What are your credit policies in lending loans?
What are your requirements in lending loans to strawberry farmers?
What are your conditions in lending loans?
Terms of interest rate:
Rate of service fee:
Repayment period:
Mode of payment:
What is/ are the collection technique used in collecting loan?
Do you charge penalty on late payments? ( ) yes
( ) no
if yes, how much? ______
Do you force your borrower to pay their loan on time, why? ( ) yes ( ) no
Do you charge penalty on late payments? ( ) yes
( ) no
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
58
if yes, how much? ______
What are the problems you encounter in lending loans to strawberry farmers?
What are your actions in order to prevent delinquent accounts?
An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad,
Benguet / RASHID B. LOKINES. 2011
Document Outline
- An Assessment on the Source of Capital by Strawberry Farmers in La Trinidad, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF RELATED LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDICES