Determinants of rural credit access decision-making among small-scale rice farmers in Calintaan, Occidental Mindoro, Philippines

Informal sources of credit prevail in the rural areas of developing countries, primarily catering to farm households – hence, this study was conducted to analyze the determinants of rural credit access decisions among small-scale rice farmers in Calintaan, Occidental Mindoro, the Philippines, using binary logistic regression. A total of 74 randomly selected farm household heads who have direct supervision in rice farming activities participated in the study. The binary logistic regression results indicated that gender, age, and education were the significant determinants of the rural credit decision. Informal sources of credit play a vital role in promoting the small-scale agricultural productivity of rice and they serve as the immediate source of agricultural financing when there is a shortage or absence of accessible formal credit providers. In light of the findings, this research recommends other factors, working sectors, and settings for future research. Some policy recommendations were also suggested, such as the formulation of a rural credit policy that would fit the socioeconomic status of the farmers and a government policy to bridge the gap between small-scale rice farmers and formal credit institutions.