Effects of Microfinance Credits on Farm Performance of Small-Scale Mango Farmers in Davao del Sur

The study aimed to determine the impact of credit access from microfinance institutions on the farm performance of 87 small-scale mango farmers in Davao del Sur. It addressed the lack of literature documenting the effects of microfinance credit on farm productivity. The findings of this study are expected to inform policy formation and interventions that enhance access to microfinance credit among mango farmers. A cross-sectional and descriptive research design was utilized to meet the study objectives. Using statistical tools such as frequency distribution, mean, standard deviation, and regression analysis showed that most small-scale mango farmers were aged 36 to 51, predominantly male, married, and high school graduates. Most had 4 to 6 household members, identified as Cebuano, and owned 1 to 2 hectares of farmland. Most received and repaid loans in cash, with interest, and were required to provide collateral to access credit. Increased access to capital and higher productivity per hectare were rated highly among the economic benefits. The level of engagement and collaboration among small-scale mango farmers was rated as moderate. Furthermore, there was a significant relationship between economic benefits and financial performance; however, no significant association was found between engagement/collaboration and the farmers’ financial performance. Additionally, most farmers identified climate change, pest and disease outbreaks, limited access to quality inputs, and market access and pricing issues as key challenges in mango production. Since many respondents were small-scale farmers with only a high school education, providing targeted training programs on available financial services, agricultural best practices, and climate change adaptation strategies would be beneficial. This would help ensure that farmers are better informed about improved productivity and financial management options.