The Agri-credit accessibility and the utilization of Agri-loan proceeds of rice farmers

Rice farmers struggle to obtain and effectively utilize credit, which limits their agricultural productivity and livelihood. This study examined the relationship between agri-credit accessibility and utilization of agri-loan proceeds among the 59 registered rice farmers in Villa Cerveza, Victoria, Oriental Mindoro. It aimed to assess the extent of accessibility of agri-credit from microfinance institutions, banking institutions, and informal lenders and to examine the utilization practices for farm and non-farm needs. Using a quantitative correlational research design, the data were gathered through structured questionnaires. These were being analyzed using weighted mean, Pearson's correlation, and Jamovi software. The results revealed the different perceptions of accessibility. Informal lenders were rated most accessible, while microfinance institutions and banking institutions were rated as moderate and limited, respectively. Farmers utilized credit mostly for farm inputs such as seeds, fertilizers, and pesticides, with some of these going toward household necessities. However, the investments in modern methods of farming were limited. There was a significant positive correlation between agri-credit accessibility and utilization. This indicates that increased access leads to more effective loan usage, higher farm productivity, and more financial stability. To address these, it is recommended that farmers acquire clear and concise information about different loan products, eligibility requirements, and repayment schedules through seminars, workshops, and financial literacy training. These initiatives should educate farmers on how to properly manage their debts, classify spending, and seek additional income sources. This study offers significant insights helping policymakers, financial institutions, and farming communities to establish comprehensive and supportive agricultural financing systems.