IDEAS home Printed from https://ideas.repec.org/a/gam/jijfss/v11y2023i1p19-d1037053.html
   My bibliography  Save this article

What Makes Farmers Record Farm Financial Transactions? Empirical Evidence from Potato Farmers in Indonesia

Author

Listed:
  • Eliana Wulandari

    (Department of Agricultural Social-Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Tuti Karyani

    (Department of Agricultural Social-Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Ernah

    (Department of Agricultural Social-Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Raden Trizaldi Prima Alamsyah

    (Agricultural Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

Abstract

Financial recording is still difficult due to the limited knowledge of farmers, whereas financial recordings are crucial for producing important reports for business development. This study aims to analyze the factors related to farmers’ activity in recording farm finances and the impact on farmers’ production and income. The study was carried out in West Java and included 200 potato farmers in the Garut and Bandung Districts. Factors related to the farmers’ experiences recording farm finances were investigated using logistic regression analysis. The results of this study showed that the significant factors related to farmers’ activity recording farm finances are the farmers’ education, their participation in the training of financial records, and their experience in obtaining finance from farmers’ associations, traders and agricultural input kiosks. Furthermore, this study also showed that recording financial transactions in agricultural business can increase farmers’ production and income. This study provides insights to policymakers and financial providers, showing the need to provide farmers with assistance in financial recording.

Suggested Citation

  • Eliana Wulandari & Tuti Karyani & Ernah & Raden Trizaldi Prima Alamsyah, 2023. "What Makes Farmers Record Farm Financial Transactions? Empirical Evidence from Potato Farmers in Indonesia," IJFS, MDPI, vol. 11(1), pages 1-11, January.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:19-:d:1037053
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7072/11/1/19/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7072/11/1/19/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alejandro Drexler & Greg Fischer & Antoinette Schoar, 2014. "Keeping It Simple: Financial Literacy and Rules of Thumb," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 1-31, April.
    2. D. Eric Hirst & Kevin E. Jackson & Lisa Koonce, 2003. "Improving Financial Reports by Revealing the Accuracy of Prior Estimates," Contemporary Accounting Research, John Wiley & Sons, vol. 20(1), pages 165-193, March.
    3. Lobley, Matt & Saratsi, Eirini & Winter, Michael & Bullock, James, 2013. "Training farmers in agri-environmental management: the case of Environmental Stewardship in lowland England," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(1), pages 1-9, October.
    4. César Salazar & John Rand, 2016. "Production risk and adoption of irrigation technology: evidence from small-scale farmers in Chile," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-37, December.
    5. Onaolapo Adekunle Abdul-Rahamon & Adegbite Tajudeen Adejare, 2014. "The Analysis of the impact of Accounting Records Keeping on the Performance of the Small Scale Enterprises," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(1), pages 1-17, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    2. Margaret Miller & Julia Reichelstein & Christian Salas & Bilal Zia, 2015. "Can You Help Someone Become Financially Capable? A Meta-Analysis of the Literature," The World Bank Research Observer, World Bank, vol. 30(2), pages 220-246.
    3. Teresa Molina Millán & Karen Macours, 2017. "Attrition in randomized control trials: Using tracking information to correct bias," FEUNL Working Paper Series novaf:wp1702, Universidade Nova de Lisboa, Faculdade de Economia.
    4. Sseruyange, J. & Bulte, E., 2018. "Do Incentives matter for Knowledge Diffusion? Experimental Evidence from Uganda," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275896, International Association of Agricultural Economists.
    5. Kjetil Bjorvatn & Alexander W. Cappelen & Linda Helgesson Sekei & Erik Ø. Sørensen & Bertil Tungodden, 2020. "Teaching Through Television: Experimental Evidence on Entrepreneurship Education in Tanzania," Management Science, INFORMS, vol. 66(6), pages 2308-2325, June.
    6. Antonia Grohmann & Lukas Menkhoff & Helke Seitz, 2022. "The Effect of Personalized Feedback on Small Enterprises’ Finances in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1197-1227.
    7. Singh, Nirvikar, 2018. "Financial Inclusion: Concepts, Issues and Policies for India," MPRA Paper 91047, University Library of Munich, Germany.
    8. Aga,Gemechu A. & Campos,Francisco Moraes Leitao & Conconi,Adriana & Davies,Elwyn Adriaan Robin & Geginat,Carolin, 2021. "Informal Firms in Mozambique : Status and Potential," Policy Research Working Paper Series 9712, The World Bank.
    9. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does financial literacy improve financial inclusion? Cross country evidence," World Development, Elsevier, vol. 111(C), pages 84-96.
    10. Axel Demenet, 2016. "Does Managerial Capital also Matter Among Micro and Small Firms in Developing Countries?," Working Papers DT/2016/12, DIAL (Développement, Institutions et Mondialisation).
    11. Sandro Ambuehl & B. Douglas Bernheim & Annamaria Lusardi, 2022. "Evaluating Deliberative Competence: A Simple Method with an Application to Financial Choice," American Economic Review, American Economic Association, vol. 112(11), pages 3584-3626, November.
    12. Anderson, Stephen J. & Lazicky, Christy & Zia, Bilal, 2021. "Measuring the unmeasured: Aggregating, anchoring, and adjusting to estimate small business performance," Journal of Development Economics, Elsevier, vol. 151(C).
    13. Premand, Patrick & Brodmann, Stefanie & Almeida, Rita & Grun, Rebekka & Barouni, Mahdi, 2016. "Entrepreneurship Education and Entry into Self-Employment Among University Graduates," World Development, Elsevier, vol. 77(C), pages 311-327.
    14. Dalton, Patricio & Pamuk, Haki & Ramrattan, R. & van Soest, Daan & Uras, Burak, 2018. "Payment Technology Adoption and Finance : A Randomized-Controlled-Trial with SMEs," Other publications TiSEM 82d89846-b515-41c7-b431-5, Tilburg University, School of Economics and Management.
    15. Malte Dold, 2023. "Behavioural normative economics: foundations, approaches and trends," Fiscal Studies, John Wiley & Sons, vol. 44(2), pages 137-150, June.
    16. Robert W. Fairlie & Dean Karlan & Jonathan Zinman, 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 125-161, May.
    17. Andreas Georgiadis & Christos N. Pitelis, 2016. "The Impact of Employees' and Managers' Training on the Performance of Small- and Medium-Sized Enterprises: Evidence from a Randomized Natural Experiment in the UK Service Sector," British Journal of Industrial Relations, London School of Economics, vol. 54(2), pages 409-421, June.
    18. Sorin I Blaga, 2022. "A Conceptual Model and Hypothesis of Firm Bankruptcy: A Romanian Case Study," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(1), pages 211-226, March.
    19. Alessia Sconti, 2020. "Financial Literacy in Italy: What works among millennials most?," Working Papers 01/2020, University of Verona, Department of Economics.
    20. Faruque As Sunny & Linlin Fu & Md Sadique Rahman & Zuhui Huang, 2022. "Determinants and Impact of Solar Irrigation Facility (SIF) Adoption: A Case Study in Northern Bangladesh," Energies, MDPI, vol. 15(7), pages 1-17, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:19-:d:1037053. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.