International Peace Leadership College

Formerly: (Unification Theological Seminary in Asia)

Sitio Mayagay I, Sampaloc, Tanay 1980 Rizal Philippines

Lack of Equipment and Financial Problem by Farmers in General Tinio Nueva:

Credit for Sustainable Farming

1ST SEMESTER, SY2019-2020

Submitted by:

Mark Kevin Rivera

(BS-Entrepreneurship)
 Chapter 1

PROBLEM AND ITS BACKGROUND

Introduction

There are several problems in farm industry in Papaya, General Tinio NE encountered by

farmers, these problems affect rice and vegetables production. That common problems encountered

by farmers are lack of equipment and most especially lack of financial support.

The government develops agriculture so as to raise the gross national product (GNP). It

can either impose direct or indirect measures. Subsidies, low-interest loan and guaranteed price can

raise the quantity of farming output, i.e. the yield. With the increase of capital, quality of farming

output can also be raised. The government plays an important role in the farming activities. However,

in some cases, government subsidies may not necessarily lead to a corresponding increase in

farming outputs (Sang & Tat, 2014).

Farmers and farming communities provide an excellent environment to raise families. They

offer opportunities for young and old alike to gain experiences in basic lifelong values, an

appreciation for success, as well as the heartache of life most challenging occurrences (Compston,

1971)

The farmers lack support, training and a moral boost. First, they lack basic skills in

farming. Many are not educated or only elementary graduates. Second, good fertilizers, pesticides

and seeds are imported from other countries, making them very expensive and unaffordable for the
lowly farmer. Third, the government has not developed a good infrastructure for farmers (Soliven,

2018).

To identify the trends in common problems encountered by farmers. It also aimed to

determine which among these problems significantly affects rice production. Simple statistical tools

and production function were used in this study. The results revealed that common problems

encountered by rice farmers were: high cost of inputs, low price of palay, lack of capital, labor

problem, lack of postharvest facilities, pest and diseases and irrigation system. The results also

showed that lack of capital and pests and diseases significantly affects production during wet season

(Arida I.A, 2009).

This study will determine that the farmer credit is one of a major support service extended

to serve the financial and equipment needs for farmer’s production, marketing and other production.

Enhancing access to credit by small farmers has always been a major component of development

programs and projects in Papaya, General Tinio N.E

The significance of this study is to provide a successful propose model that can help local

farmer in Papaya, General Tinio N,E farmers are very important because they are providing

food for us and this is the survival of our various society.

 Background of the study

There are several problems in farm industry in Papaya, General Tinio N.E encountered

by farmers, these problems affect rice and vegetables production. That common problems

encountered by farmers are lack of equipment and most especially lack of financial support.

The importance of this proposed model is to help and develop the farming industry of

farmers in Papaya, General Tinio N.E and also to help them in terms of equipment and financial

problems.

Scope and Limitation of the Study

This study will be conduct in Papaya, General Tinio Nueva Ecija, there is a large

numbers of farmer that need a solution for there farming.

 Chapter 2

Review of Related Literature and Studies

This chapter presents literatures which are all significantly related to the present study.

Local Literature

Agricultural credit is a major support service extended to serve the financial needs for

agricultural production, marketing and other stages of the value chain. Enhancing access to

credit by small farmers has always been a major component of development programs and

projects in the Philippines. (Limbo, 2017).

Foreign Literature

The new generation of credit programs directed at small borrowers emphasizes

financial sustainability. Based on anecdotal information in Africa, proponents of cost recovery

claim that raising formal lending rates would have a minimal impact on borrowing. (Briones,

2009)
 Chapter 3

Research Method and Procedure

The Entrepreneur Support Model: This model of social enterprise Social Entrepreneur

sells business support services directly to the entrepreneurs in its target population. In other

words, this type of SE helps entrepreneurs get their businesses off the ground. Support can

come in the form of consulting services, training, micro financing or technical support.

Organizations that belong to this category may include economic development organizations,

business development service organizations and microfinances.

Setting of the study

This study will be conducted at Papaya, General Tinio Nueva Ecija.

Subject of the study

A large numbers of farmer that need a solution for their farming and this model proposal can

help them to improve their farming industry and totally change their life.

Procedure of the study

There is an organization farmers or cooperative in Papaya, General Tinio Nueva Ecija and

they are the one who will be the participants to conduct this study.

Source of Data
https://www.bing.com/search?q=farmers+studies+in+philippines&qs=HS&sc=7-

0&cvid=9105BE0E6D3741C1B0B2E860A6A5156B&FORM=QBRE&sp=1

https://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Philippines-

AGRICULTURE.html

https://changecreator.com/9-business-model-examples-social-enterprises/