IDEAS home Printed from https://ideas.repec.org/p/ags/asae11/291326.html
   My bibliography  Save this paper

Does Microfinancing improve Farm Productivity? Empirical Evidence on Rice farming in San Francisco, Agusan del Sur, Philippines

Author

Listed:
  • Manzano, Gianne Francis Alfred E.
  • Ellson, Adela G.
  • Traje, Adonis
  • Romo, Glory Dee A.
  • Sarmiento, Jon Marx P.

Abstract

Poverty remains to be the highest in agricultural areas in the Philippines. To alleviate this problem, capital empowerment through microfinancing was among the government’s program in the rural areas including the municipality of San Francisco, Agusan del Sur. A total of 95 rice farmers with a 10% margin of error were interviewed to draw conclusions on the impact of microfinancing to farm productivity. Econometric modeling was employed. The production data were fitted using five standard production functions namely; (1) neoclassical, (2) neoclassical with interaction, (3) Cobb-Douglas like, (4) Transcendental and the (5) modified transcendental models. Transcendental function best fits the data with Microfinancing significantly improving farm productivity by 39%. Despite this positive impact, only 34% of these farmers were availing from formal institutions and only 18% took advantage during the last cropping. Nonetheless, it is highly recommended to strengthen the microfinance program in the Philippines by offering extension works on the benefit of Microfinancing, offering less stringent application procedure, and ensuring agricultural credits are used on its purpose, thus, improving the plight of the rural farmers.

Suggested Citation

  • Manzano, Gianne Francis Alfred E. & Ellson, Adela G. & Traje, Adonis & Romo, Glory Dee A. & Sarmiento, Jon Marx P., 2011. "Does Microfinancing improve Farm Productivity? Empirical Evidence on Rice farming in San Francisco, Agusan del Sur, Philippines," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 291326, Asian Society of Agricultural Economists (ASAE).
    • Handle: RePEc:ags:asae11:291326
    DOI: 10.22004/ag.econ.291326
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/291326/files/unknown_Jon%20Marx%20Sarmiento_Philippines.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.291326?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:ags:asae11:291326. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/asaeeea.html .

    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.