Agribusiness practices, financial risk management, and market participation among Philippine palay and vegetable farmers: Evidence for the development of the SAGIP framework

Abstract

This study sought to examine the practices of farmers regarding agribusiness, financial risk management, and market participation in the Philippines to provide an empirical foundation for the development of SAGIP, which stands for the Sustainable Agribusiness Growth and Integrated Participation Framework for Sustainable Agribusiness Development. The study used a mixed-method approach in which both qualitative and quantitative research were conducted to achieve a holistic perspective on the experiences and practices of farmers. Data were gathered through surveys and interviews from 50 farmer-respondents, consisting of 25 palay farmers and 25 vegetable farmers selected using quota and convenience sampling. The results indicated that farmers had good agribusiness practices, financial risk management, and market participation. The highest performance in agribusiness practices was observed in production planning and input use, while market-oriented and value chain-related practices were less developed. Vegetable farmers were more advanced in agribusiness practices than palay farmers, despite experiencing similar economic risks and agribusiness challenges. Agribusiness practices, financial risk management, and technology use also had significant impacts on market participation. As a result, the SAGIP Framework was developed, incorporating agribusiness capacity-building, financial risk management assistance, market linkage development, technology use, and post-harvest and logistical assistance to support sustainable agribusiness development nationwide.