The Determinants and Impacts of Farmer Association Membership in Albay, Philippines
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This paper examines the effects of Farmer Association membership on economic outcomes such as revenue, expectations of future profitability, access to credit, and access to various forms of insurance. This study also evaluates the factors which affect the probability of farmers joining these associations. In order to address the endogeneity between these outcomes and membership status due to the self-selecting nature of cooperative membership, the study employs propensity score matching methods in order to arrive at an estimate of the impact of farmer association membership. The study utilizes data collected using a survey instrument administered to 602 farmers across the municipalities of Camalig, Daraga, and Guinobatan in the province of Albay, Philippines. The results show that wealthier farmers, those in less remote areas, and those that have better access to information are more likely to join farmer associations. Finally, the members of these associations show higher levels of farm revenue and are more likely to have agricultural insurance. These findings emphasize the role of farmer association membership as conduits of government aid and technical knowledge.
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Pingali, Prabhu