Philippine E-Journals

Capital Structure Management of Rice Farmers

Arly N. Visperas | Kimberly R. Magatas | Jackielou P. Ambasing | Arianne Gayle R. Sia | Queen Alleah Rose A. Aclera | Erica Mae A. Soberano | Jericho Q. Eria

Discipline: Agriculture

 

Abstract:

Capital structure management is a set of decisions related to the mix of financing sources that is utilized in the entity's operation and develop-ment. Financing is a significant obstacle for smallholder farmers in ac-cessing additional inputs required to boost agricultural yields and in-come. This study identified and measured the capital structure manage-ment of rice farmers, focusing on internal funding and external funding. This study is anchored to SDG 1, 2, 8, 12, 15 and 17. Quantitative-de-scriptive research design was used in this study and employed the con-venience sampling method, wherein questionnaires were used to inves-tigate the capital structure management of rice farmers in selected Ba-rangays in Asingan, Pangasinan, Philippines specifically Barangay Ban-tog, Cabalitian, and Domanpot. The results indicated that most rice farm-ers are late middle-aged, married males who are classified as small-holder farmers, and have an average number of dependent family mem-bers. They sometimes practice capital structure management, which shows inconsistency in its implementation. The findings further re-vealed that rice farmers are risk-averse yet have stable financial condi-tions. Based on the data, this study recommended conducting a seminar about enhancing the capital structure management of rice farmers that highlights the significance of optimizing the rice farmers’ financial re-sources.