DEMOGRAPHICS, STRATEGIC PRACTICES, AND SOURCES OF CREDIT AMONG SMALLHOLDER FARMERS

Financial Inclusion / Microfinance

This study investigates the debt management strategies of smallholder rice farmers in Surigao del Sur, focusing on their access to and engagement with cooperative lending and government subsidy programs. A total of 370 respondents were surveyed to assess their demographic profiles, financial behaviors, and the frequency, consistency, awareness, and knowledge associated with these institutional support mechanisms. While the findings confirm full structural access to both strategies, results reveal significant variability in implementation consistency, engagement frequency, and depth of understanding. Many farmers continue to rely on informal lenders, underscoring persistent barriers in trust, literacy, and institutional responsiveness. Drawing from Institutional Theory, Financial Capability Framework, and Diffusion of Innovation Theory, the study concludes that effective program delivery requires not only access but also behavioral reinforcement, transparency, and capacity building. The study recommends strengthening extension services, digitizing and decentralizing implementation processes, and institutionalizing financial literacy at the grassroots level. These findings offer critical implications for designing inclusive, responsive, and sustainable debt support systems for rural farming communities.

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