Financial Literacy Level of Smallholder Corn Farmers in Tuguegarao City, Cagayan

Karen Joy Catacutan, Valerie C. Domingo, Phoebe Kaynah M. Moral, Angeline B. Rayray, Jerald H. Tuliao & Fe Rose-Anne Maramag

Volume 3 Issue 1 June 2023

Abstract

Agribusiness has been a growing trend for the past years. Transactions have become more complex, and farming faced more challenges than before. Financial literacy is essential for farm management to sustain the resiliency and sustainability of farmers’ livelihoods. Tuguegarao City is the regional center of Cagayan Valley, and its top agricultural product is corn. Additionally, most of its farmers' population are smallholders owning less than two hectares of operated land area. Thus, this study assessed the financial literacy level of smallholder corn farmers in Tuguegarao City, Cagayan. Specifically, the study aimed to measure their financial literacy level, and identify the relationship between overall financial literacy level and socio-demographic profile. Data were gathered among 136 smallholder corn farmers through a survey questionnaire comprising the respondents' socio-demographic characteristics and core questions about financial literacy, adopted from the standardized survey instrument developed by the Organisation for Economic Co-operation and Development (OECD). Results showed that smallholder corn farmers in Tuguegarao possessed a medium measure of financial knowledge, financial behavior, and financial attitude. Overall, the respondents also have a medium level of financial literacy, and financial attitude has the largest share in overall financial literacy. It was concluded that a significant positive relationship exists between income per cropping, participation in financial training/programs, and overall financial literacy. Furthermore, farmers with higher incomes and those who participated in financial training tended to have medium financial literacy.

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Author information & Contribution

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Notes

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Cite this article:

Catacutan, K., Domingo, V.C., Moral, P.M., Rayray, A.B., Tuliao, J.H. & Maramag, F. (2023). Financial Literacy Level of Smallholder Corn Farmers in Tuguegarao City, Cagayan. The Research Probe, 3(1), 30 - 38.