Measuring the Financial Literacy of Farmers Food Crops in the Poor Area of Madura, Indonesia

Abstract

An effort to encourage increased food productivity is directly proportional to the limited access of farmers on capital financing resources. The purpose of the research is to describe the financial literacy rate of farmers in Madura. The data analysis method uses a descriptive (qualitative) analysis and a different test (T-Test) with IBM SPSS. 23 Software support. The results of the research obtained that food farmers in Sampang and Bangkalan districts have a relatively moderate financial knowledge with all its limitations. Their understanding is sufficient about the knowledge principle of bank interest calculation, the time value of money, the general rules of the bank, the definition of inflation, risk and profit received. However, financial behavior and attitudes are categorized less. The difference of the principal of Madura food farmers in both research areas namely Sampang Regency and Bangkalan District is located on the component of the Financial Knowledge Index.

Financial literacy and its antecedents amongst the farmers: evidence from India

“…Widhiyanto et al (2018) reported a moderate level of FL amongst the Indonesian farmers and age, education, distance to the national capital, income, bank account, and financial education were noted as the important factors affecting the level of FL. Such a moderate level of FL was also observed by Santoso et al (2020) and Safitri (2021) in respect of Indonesian farmers. Lakkanawanit and Dungtripop (2018) also showed that age, education and practice of book keeping were found to exert a significant positive effect on the moderate level of FL amongst the rice growers in the PakPanang basin of Thailand.…”

“…(2018) reported a moderate level of FL amongst the Indonesian farmers and age, education, distance to the national capital, income, bank account, and financial education were noted as the important factors affecting the level of FL. Such a moderate level of FL was also observed by Santoso et al. (2020) and Safitri (2021) in respect of Indonesian farmers.…”

“…Handful studies have been carried out to ascertain the state of FL and associated contributing factors amongst the farmers in Ghana (Akoto et al, 2017;Twumasi et al, 2021), Indonesia (Widhiyanto et al, 2018;Santoso et al, 2020;Safitri, 2021) and Thailand (Lakkanawanit and Dungtripop, 2018). Akoto et al (2017) showed the prevalence of low level of FL amongst the cocoa farmers in Ghana.…”

“…, 2021), Indonesia (Widhiyanto et al. , 2018; Santoso et al. , 2020; Safitri, 2021) and Thailand (Lakkanawanit and Dungtripop, 2018).…”

Farmer's financial literacy and its determinants: evidence from South Asia

“…Akoto et al (2017) and Twumasi et al (2021) observed the prevalence of poor FL (affected by age, economic status, educational attainment, gender, risk tolerance and viewership of FL television programmes) amongst Ghanaian farmers. On the other hand, Widhiyanto et al (2018), Santoso et al (2020) and Safitri (2021) noticed that the moderate FL amongst the Indonesian farmers geting affected by age, educational attainment, level of income, financial inclusion (FI) and FL training. Similarly, Lakkanawanit and Dungtripop (2018) also noticed a moderate level of FL (affected by age, education and habit of practicing book-keeping) amongst the rice cultivators of Thailand.…”