Increase accessibility to formal financial institutions

Oct 13, 2025 by leolavanderia.com.br 91 views

Farmers' Accessibility to Financial Institutions: A Case Study of Pemanden Village, Kutalimbaru District, Deli Serdang Regency

Introduction

Access to financial institutions is a crucial aspect of a farmer's success in the agricultural sector. It enables them to invest in their businesses, manage risks, and increase their productivity. However, many farmers in rural areas face significant challenges in accessing financial institutions, which can limit their ability to grow their businesses and improve their livelihoods. This study aims to investigate the accessibility of farmers to financial institutions in Pemanden Village, Kutalimbaru District, Deli Serdang Regency, and to identify the sources and types of capital used by farmers in the village.

Background

Pemanden Village is a rural area located in Kutalimbaru District, Deli Serdang Regency. The village has a population of approximately 1,000 people, with the majority engaged in agriculture. The village has a long history of farming, with many farmers relying on traditional methods to cultivate their crops. However, the village has also experienced significant changes in recent years, with the introduction of new technologies and farming practices. Despite these changes, many farmers in the village continue to face significant challenges in accessing financial institutions.

Methodology

This study used a descriptive analysis and score analysis research method to investigate the accessibility of farmers to financial institutions in Pemanden Village. The study involved a total of 43 respondents, with ages ranging from 23 to 65 years. The respondents were selected using a purposive sampling method, with the aim of ensuring that the sample was representative of the village's farming population.

Results

The results of the study showed that the capital structure of respondent farmers was divided into several categories, including Mandiri, Mandiri and owed to Cu, owed to Cu, and owed to middlemen. The study also found that the sources and types of capital used by farmers in the village were derived from both formal and informal capital sources. Capital sources from informal institutions were obtained through middlemen, while the source of capital from formal institutions came from the CU of the Percanden Village.

Deeper Analysis

The study's findings indicate that farmers in the village of Pemanden have a diverse capital structure, which suggests that they have tried to find optimal sources of capital for their farming businesses. However, the dominance of informal capital sources (middlemen) shows that farmers are still dependent on sources of capital that have weaknesses such as high interest rates and non-transparent payment systems.

The existence of CU Village PERPANDEN plays an important role in providing a source of formal capital for farmers. This helps farmers in accessing capital sources with lower interest rates and more transparent systems compared to middlemen.

The Importance of Increasing Accessibility

Increasing farmers' accessibility to formal financial institutions such as banks and cooperatives is essential. This will help farmers to obtain capital with lower interest rates and a longer payment period. It is also necessary to educate farmers about the importance of accessing formal financial institutions and the benefits that can be obtained.

The government and related institutions need to encourage and facilitate access to farmers' business loans for farmers in the village of Pemanden. This can be achieved through various initiatives, such as providing training and education programs for farmers, and establishing partnerships with financial institutions to provide affordable credit to farmers.

Conclusion

This study shows that the accessibility of farmers in the Percanden Village against financial institutions is classified as high. However, there is still high dependence on informal capital. Increasing accessibility to formal financial institutions and education for farmers is an important step to improve the welfare of farmers in the village of Pemanden.

Recommendations

Based on the study's findings, the following recommendations are made:

Increase accessibility to formal financial institutions: The government and related institutions should encourage and facilitate access to farmers' business loans for farmers in the village of Pemanden.
Educate farmers about formal financial institutions: It is essential to educate farmers about the importance of accessing formal financial institutions and the benefits that can be obtained.
Establish partnerships with financial institutions: The government and related institutions should establish partnerships with financial institutions to provide affordable credit to farmers.
Provide training and education programs for farmers: The government and related institutions should provide training and education programs for farmers to improve their financial literacy and management skills.

By implementing these recommendations, it is possible to improve the accessibility of farmers to financial institutions in Pemanden Village, and to increase their productivity and welfare.
Q&A: Farmers' Accessibility to Financial Institutions in Pemanden Village

Q: What is the main objective of this study?

A: The main objective of this study is to investigate the accessibility of farmers to financial institutions in Pemanden Village, Kutalimbaru District, Deli Serdang Regency, and to identify the sources and types of capital used by farmers in the village.

Q: What is the significance of this study?

A: This study is significant because it provides insights into the challenges faced by farmers in accessing financial institutions, and identifies the sources and types of capital used by farmers in the village. The findings of this study can inform policy and program interventions aimed at improving the accessibility of farmers to financial institutions.

Q: What are the key findings of this study?

A: The key findings of this study include:

The capital structure of respondent farmers is divided into several categories, including Mandiri, Mandiri and owed to Cu, owed to Cu, and owed to middlemen.
The sources and types of capital used by farmers in the village are derived from both formal and informal capital sources.
Capital sources from informal institutions are obtained through middlemen, while the source of capital from formal institutions comes from the CU of the Percanden Village.
Farmers in the village of Pemanden have a diverse capital structure, which suggests that they have tried to find optimal sources of capital for their farming businesses.
The dominance of informal capital sources (middlemen) shows that farmers are still dependent on sources of capital that have weaknesses such as high interest rates and non-transparent payment systems.

Q: What are the implications of this study?

A: The implications of this study are:

Increasing farmers' accessibility to formal financial institutions such as banks and cooperatives is essential to improve the welfare of farmers in the village of Pemanden.
Educating farmers about the importance of accessing formal financial institutions and the benefits that can be obtained is crucial.
The government and related institutions need to encourage and facilitate access to farmers' business loans for farmers in the village of Pemanden.

Q: What are the recommendations of this study?

A: The recommendations of this study are:

Increase accessibility to formal financial institutions: The government and related institutions should encourage and facilitate access to farmers' business loans for farmers in the village of Pemanden.
Educate farmers about formal financial institutions: It is essential to educate farmers about the importance of accessing formal financial institutions and the benefits that can be obtained.
Establish partnerships with financial institutions: The government and related institutions should establish partnerships with financial institutions to provide affordable credit to farmers.
Provide training and education programs for farmers: The government and related institutions should provide training and education programs for farmers to improve their financial literacy and management skills.

Q: What are the limitations of this study?

A: The limitations of this study include:

The study was conducted in a single village, which may limit the generalizability of the findings.
The study relied on a small sample size, which may not be representative of the larger population of farmers in the region.

Q: What are the future research directions?

A: The future research directions include:

Conducting a larger-scale study to investigate the accessibility of farmers to financial institutions in multiple villages.
Investigating the impact of financial literacy and management skills on farmers' access to financial institutions.
Examining the role of government and related institutions in facilitating access to farmers' business loans.