Determinants of rural credit access decision-making among small-scale rice farmers in Calintaan, Occidental Mindoro, Philippines


Informal sources of credit prevail in the rural areas of developing countries mostly cater farm households.  Hence, this study was conducted to analyze the determinants of rural credit access decision among small-scale rice farmers in Calintaan, Occidental Mindoro, Philippines using binary logistic regression. A total of 74 randomly selected farm household heads, who have direct supervision in rice farming activities, participated in the study. The results of the binary logistic regression indicated that gender, age and education were the significant determinants of rural credit decision. This research recommends other factors, working sectors and settings for future research.


rural credit; rice farmers; credit access; decision; binary logistic regression

Acharya, S. S. (2006). Agricultural marketing and rural credit for strengthening Indian agriculture.
Adebayo, O. O., & Adeola, R. G. (2008). Sources and uses of agricultural credit by small scale farmers in Surulere Local Government Area of Oyo State. The Anthropologist, 10(4), 313-314.
Adegbite, D. A., and O. A. Adeleye. "Determinants of Farmers’ Access to Micro-Credit in Oyo State, Nigeria." Journal of Agricultural Research and Development 10, no. 1 (2011): 55-80.
Akpan, S. B., Patrick, I. V., Udoka, S. J., Offiong, E. A., & Okon, U. E. (2013). Determinants of credit access and demand among poultry farmers in Akwa Ibom State, Nigeria. Journal of Experimental Agriculture International, 293-307.
Baffoe, G., & Matsuda, H. (2015). Understanding the determinants of rural credit accessibility: The case of ehiaminchini, Fanteakwa District, Ghana. Journal of sustainable development, 8(6), 183-195. https;//
Catelo, S. P., Catelo, M. A. O., & Mina, C. S. (2017). Rural Financial Markets and Credit Delivery System in the Philippines. Microfinance in Asia, 177-226.
Chandio, A. A., Jiang, Y., Rehman, A., Twumasi, M. A., Pathan, A. G., & Mohsin, M. (2020). Determinants of demand for credit by smallholder farmers': a farm level analysis based on survey in Sindh, Pakistan. Journal of Asian Business and Economic Studies.
Duy, V. Q., D’Haese, M., Lemba, J., & D’Haese, L. (2012). Determinants of household access to formal credit in the rural areas of the Mekong Delta, Vietnam. African and Asian studies, 11(3), 261-287.
Etonihu, K. I., Rahman, S. A., & Usman, S. (2013). Determinants of access to agricultural credit among crop farmers in a farming community of Nasarawa State, Nigeria. Journal of Development and Agricultural Economics, 5(5), 192-196.
Floro, S. L. (2019). Informal credit markets and the new institutional economics: The case of Philippine agriculture. Routledge.
Gan, C., Nartea, G. V., & Xia, J. L. (2017). An overview of microfinance. Microfinance in Asia, 1-22.
Gray, A. (2006). Credit accessibility of small-scale farmers and fisherfolk in the Philippines (Doctoral dissertation, Lincoln University).
Hosmer, D. W., Jr., S. A. Lemeshow, and R. X. Sturdivant. 2013. Applied Logistic Regression. 3rd ed. Hoboken, NJ: Wiley.
Jamil, N. I., Baharuddin, F. N., Maknu, T. S. R., Sulaiman, T., Rosle, A. N., & Harun, A. F. (2014). Exploratory factor analysis'.
Kedir, A. (2003). Determinants of access to credit and loan amount: Household-level evidence from urban Ethiopia.
Kiplimo, Joyce C., Evans Ngenoh, Walter Koech, and Jullius K. Bett. "Determinants of access to credit financial services by smallholder farmers in Kenya." Journal of Development and Agricultural Economics 7, no. 9 (2015): 303-313.
Kumar, A., Singh, D. K., & Kumar, P. (2007). Performance of rural credit and factors affecting the choice of credit sources. Indian Journal of Agricultural Economics, 62(902-2016-67995).
Linh, T. N., Anh Tuan, D., Thu Trang, P., Trung Lai, H., Do Anh, Q., Viet Cuong, N., & Lebailly, P. (2020). Determinants of Farming Households’ Credit Accessibility in Rural Areas of Vietnam: A Case Study in Haiphong City, Vietnam. Sustainability, 12(11), 4357.
Llanto, G. M. (1993). Agricultural credit and banking in the Philippines: efficiency and access issues.
Luan, D. X., Bauer, S., & Kuhl, R. (2016). Income Impacts of credit on accessed households in rural Vietnam: Do various credit sources perform differently? AGRIS on-line Papers in Economics and Informatics, 8(665-2016-45113), 57-67.
Maharjan, K. L., & Joshi, N. P. (2011). Determinants of household food security in Nepal: A binary logistic regression analysis. Journal of Mountain Science, 8(3), 403-413.
Malapit, H. J. L. (2012). Are women more likely to be credit constrained? Evidence from low-income urban households in the Philippines. Feminist Economics, 18(3), 81-108.
Mikkel, B., & Finn, T. (2003). Rural Credit in Vietnam. Retrieved from
Mishra, A. K., Khanal, A. R., & Mohanty, S. (2017). Gender differentials in farming efficiency and profits: The case of rice production in the Philippines. Land use policy, 63, 461-469.
Moahid, M., & Maharjan, K. L. (2020). Factors affecting farmers’ access to formal and informal credit: Evidence from Rural Afghanistan. Sustainability, 12(3), 1268.
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.
Ololade, R. A., & Olagunju, F. I. (2013). Determinants of access to credit among rural farmers in Oyo State, Nigeria. Global Journal of Science Frontier Research Agriculture and Veterinary Sciences, 13(2), 16-22.
Omonona, B. T., Lawal, J. O., & Oyinlana, A. O. (2010). Determinants of credit constraint conditions and production efficiency among farming households in Southwestern Nigeria (No. 308-2016-5022, pp. 1-14).
Phan, D. K. (2012). An empirical analysis of accessibility and impact of microcredit: the rural credit market in the Mekong River Delta, Vietnam (Doctoral dissertation, Lincoln University).
Sebopetji, T. O., & Belete, A. (2009). An application of probit analysis to factors affecting small-scale farmers decision to take credit: A case study of the Greater Letaba Local Municipality in South Africa. African journal of agricultural research, 4(8), 718-723.
Shrestha, N. (2021). Factor Analysis as a Tool for Survey Analysis. American Journal of Applied Mathematics and Statistics, 9(1), 4-11.
Starkweather, J., & Moske, A. K. (2011). Multinomial logistic regression.
Tranmer, M., & Elliot, M. (2008). Binary logistic regression. Cathie Marsh for census and survey research, paper, 20.
Tu, T. T. T., Viet, N. Q., & Loi, H. H. (2015). Determinant of Access to Rural Credit and Its Effect on Living Standard: Case Study about Poor Households in Northwest, Vietnam (Note 1). International Journal of Financial Research, 6(2).
Zapata, N. (2006). Credit decision and rationing rules: a study of informal lenders in the Philippines. Philippine Management Review, 13, 117-126.

Published : 2022-04-05

Ambong, R. M., & Pasco, M. (2022). Determinants of rural credit access decision-making among small-scale rice farmers in Calintaan, Occidental Mindoro, Philippines. Journal of Agribusiness and Rural Development, 63(1), 81–88.

Ryan Mark Aloro Ambong
Graduate School of Business, San Beda University, Manila, Philippines; RDE Unit, Occidental Mindoro State College, Occidental Mindoro, Philippines  Philippines
Michael B. Pasco 
Graduate School of Business, San Beda University, Manila, Philippines  Philippines

CitedBy Crossref

CitedBy Scopus

HTML tutorial

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This journal permits and encourages authors to post items submitted to the journal on personal websites or institutional repositories both prior to and after publication, while providing bibliographic details that credit, if applicable, its publication in this journal.