Analysis credit accessibility of rice farmers to the informal financial institutions in the efforts of increasing productivity and income

Abstract

Accessibility is the ability of farmers to reach and obtain credit services from financial institutions. The objective of this research is to determine the level of accessibility of farmers to informal financial institutions, as the productivity, also the income of farmers before and after obtaining credit. The research sites chosen were Barembeng Village, Bontonompo District, Gowa Regency. The population in this study was 120 people with intentional sampling, so 30 people obtained as the sample. The results of the study showed that farmers’ access to informal financial institutions was relatively high, with a percentage of 56.67%. This is because the procedure is quick and simple, according to the capacity of the farmers. The ease of access is based on the principle of trust because they are already known among borrowers and farmers, such as their relatives, neighbors, co-workers and other family relationships. The average productivity of the rice crop before obtaining credit is 3.33 Ton/Ha and after obtaining credit it becomes 4.19 Ton/Ha. This is due to an increase in production, in which higher production means higher productivity. The income of the rice crop before obtaining credit is Rp. 2,744,518.00 and after obtaining credit it increases to Rp. 5,446,834.00. The difference in income is due to the fact that the selling price of the grain has increased from the sowing period before the credit to the sowing period after the credit and the interest on loans that the farmers have to pay to the creditors.