Cash Flow Management and Financial Viability: A Quantitative Study of Small-Scale Rice Farmers in Matanao, Davao Del Sur

Abstract

Despite the major role small-scale rice farmers play in the Philippines, many face financial challenges, underscoring the need for cash flow management to improve their financial viability. This study aimed to ascertain the significance of the relationship between cash flow management and the financial viability of small-scale rice farmers in Matanao, Davao del Sur. The research conducted utilized a descriptive-correlational approach. In addition, an adapted survey questionnaire was used to gather data from 333 respondents. To determine the levels of the two variables, the mean was used; to evaluate their relationship, Spearman's rho was used. The results showed that cost optimization and cash forecasting were significantly positively correlated to financial viability (financial stability, liquidity, and profitability). However, cash monitoring was not considered significant when used reactively rather than strategically. Based on the results, researchers formulated recommendations for farmers to strengthen cash flow management and attain financial viability. Finally, findings indicate that the key to long-term financial resilience and sustainability for small-scale farmers is proactive cash flow management, specifically cost optimization and cash forecasting.