The Impact of Production Loan Towards Productivity of Corn Farmers in Sarangani Province
Keywords:
agricultural finance, Corn productivity, farm profitability., impact pathway, production loans, Sarangani Province, smallholder farmers, Socio-economic factors
Abstract
This study examined the impact of production loans on the productivity of corn farmers in Sarangani Province, Philippines. It specifically investigated the socio-economic characteristics of farmers, the reasons for availing production loans, the factors influencing corn productivity, the effect of production loans on yield, and the profitability of corn production. A descriptive-correlational design was employed, and data were collected from 315 farmer respondents using structured questionnaires. Frequency and percentage analyses were used to describe socio-economic profiles, while ranking and thematic analysis identified the primary reasons for loan utilization. Factors affecting productivity were analyzed using Ordinary Least Squares (OLS) regression and Generalized Linear Models (GLM), while the impact of production loans was explored using an impact pathway approach. Cost and return analysis determined the economic viability of corn farming.
Results revealed that age, educational attainment, farm size, monthly income, loan amount and frequency, and participation in corn production and financial management training significantly influenced productivity. Gender, marital status, and number of dependents had no significant effect. Production loans enabled farmers to access essential inputs, conduct timely farming activities, and improve overall farm management, which contributed to higher yields and profitability. The study highlights the importance of integrating financial support with technical training and resource management to enhance smallholder corn productivity in the province.
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2026-09-17
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