Abstract:
This study was conducted in the vegetable producing areas of Atok, Benguet from October to December 2015 to determine the credit management practices in terms of planning, controlling, implementation and decision making as to the sources of credit capital, reason for choosing that source of credit capital and loan allocation. The study also looked into the problems encountered by the farmers on credit management and suggested solutions to that problem. There were a total of 60 farmer respondents. A survey questionnaire was used and secondary data was also collected and served as reference. The data gathered were analyzed using frequency, percentage and mean.
All the farmers sourced out their credit capital from informal sources such as traders, vegetable dealers, input suppliers, relatives and friends while only few farmers depend on cooperative as formal source.
Farmers do credit planning, controlling of credit capital and decision making in borrowing.
Farmers plans on when, where, how to use credit. In the allocation of credit capital, most of the borrowed capital were allocated to operations and improvement of their farm and in the purchase of inputs. Farmers seek advice from their family in every decision making they would like to implement and also in the planning of the business itself. Farm expenses are considered in the planning part of the farmer to estimate the amount needed to supply the business.
Farmers were facing problems on managing their credit finances such as inability to avail desired credit, inability to pay the loan and the required interests, improper usage of credit, low price of goods/produce, lack of knowledge on managing credit and natural calamities contributed to their delayed payment of their loan.
