Capital Management Practices of Vegetable Farmers in La Trinidad, Benguet

Abstract

This study was conducted to determine the sources of capital of farmers; determine the capital utilization and management practices of farmers; identify strategies in allocating their capital; determine the coping mechanism employed by farmers to their loss due to natural calamities; and find out problems encountered in management of capital. The respondents were 70 vegetable farmers.Vegetable farming is the primary sources of income of the respondents. Farmers source out capital needed from own savings, loan or borrow from cooperatives, friends and relatives. Cooperative is the major source of loans availed by the respondent and they prefer this lending institution because of low interest and less paper and because they are members of the cooperative. Farmers observe proper capital management practice since they use capital intended for its purpose especially if borrowed capital. Farmers only, estimate amount of input and set aside money for that purpose before using the money for other purposes, while not needed, farmers keep their money in the bank and others invest in other business in order to gain profit The farmers purchase the first the primary inputs needed, buy low cost but quality products used in farming and listing of the inputs and estimated amount are the strategies done by farmers in allocating their capital. Coping mechanism employed relative to loss incurred due to natural calamities includes replanting of crops, multiple cropping and harvesting of produce if already marketable and retail it in their own market stall Farmers problem in management of capital seasonality of operation, low credit availed, inflation, unavailability of raw materials.