Credit Needs of Rice Farmer-Households in Tayabas City, Quezon, 2015-2016


Credit has provided a way to meet the requirements for rice production and household needs especially during the period when farmers wait for their harvest. Further examination on timing of funds of rice farmers is necessary so that their demand for credit can be sufficiently met. The study aimed to evaluate the credit needs of rice farmer-households in Tayabas City located in Quezon Province, Philippines. This was done by interviewing 90 randomly selected rice farmers with an aid of pre-tested questionnaire. The households’ credit needs were assessed using funds flow analysis. Households’ credit needs are the amount of deficit incurred from spending all expenditures. It was found out that farmers’ demand for credit was at maximum during the months of December and June since these months were the start of cropping periods. Thus, they acquired necessary inputs and paid laborers. On the other hand, no demand for credit was observed during the months of March, April, August, September, and October. This was due to significant amount of income earned from rice farming and other farms. The findings of the study provide some implications on timing of credit distribution and monitoring of clients’ funds flow. Furthermore, sufficient livelihood programs must be provided by the government to offset capital insufficiency especially during period of waiting for harvest. 

Author Biographies

Pamela C. Nilo, University of the Philippines Los Baños

Los Banos, Laguna, Philippines

Salvador P. Catelo, University of the Philippines Los Baños

Los Baños, Laguna, Philippines


Baum, E. L., Diesslin, H. G., & Heady, E. O. (1961). Capital and credit needs in a changing agriculture.

Kinkingninhoun-Medagbe, F., Diagne, A., & Biaou, G. (2015). Impact of Use of Credit in rice farming on rice Productivity and Income in Benin.

Godquin, M., & Sharma, M. (2005). If only I could borrow more! Production and consumption credit constraints in the Philippines.

Llanto, G. M. (2005). Rural finance in the Philippines: Issues and policy challenges. Agricultural Credit Policy Council.

Maclean, J., Hardy, B., & Hettel, G. (2013). Rice Almanac, 4 Edition.

International Rice Research Institute. Retrieved from

Nagarajan, G. (1992). Informal credit markets in Philippine rice growing areas (Doctoral dissertation, The Ohio State University).

Nagarajan, G., Meyer, R. L., & Hushak, L. J. (1998). Demand For Agricultural Loans: A Theoretical And Econometric Analysis Of The Philippine Credit Market/La Demande De Prêts Agricoles: Une Analyse Théorique Et Économique Du Marché De Crédit Aux Philippines. Savings and Development, 349-363.

Office of the City Planning and Development Coordinator (2012). Physical and Socio-economic Profile City Government of Tayabas.

Ogunfowora, O., Essang, S.M. and Olayide, S.O. (1972). Capital and credit in Nigerian agricultural development. Nigerian Rural Development Study Paper No. 6, Dept. of Agricultural Economics and Extension, University of Ibadan

Philippine Statistics Authority. (2003). Notes on the Official Poverty Statistics in the Philippines. Retrieved May 16, 2016, from

Presidential Committee on Agricultural Credit (1978). A Study on the Nonrepayment of Agricultural Loans in the Philippines. Manila.

City of Tayabas. (n.d.). Retrieved May 18, 2016, from

Takahashi, K., Otsuka, K., 高橋和志, & 大塚啓二郎. (2007). Human capital investment and poverty reduction over generations: A case from the rural Philippines, 1979-2003.

Valenciano, D. & Cuyco, O. (2013). The value chain financing in the Philippines: a farmer’s journey with rural finance institutions (RFIs). National Livelihood Development Corporation.
How to Cite
NILO, Pamela C.; CATELO, Salvador P.. Credit Needs of Rice Farmer-Households in Tayabas City, Quezon, 2015-2016. Philippine Journal of Agricultural Economics, [S.l.], v. 1, n. 1, p. 29-39, june 2017. ISSN 2508-0326. Available at: <>. Date accessed: 18 jan. 2019. doi: