Assessment of Farm Financial Literacy among Jasmine Growers in Tamilnadu, India

Abstract

The unique nature of farm financial management calls for farmer to act as an entrepreneur. Being an farm entrepreneur the farmer should have enough financial literacy for effective financial management. Apart from training on production, post-harvest and marketing NAIP had given some information on farm financial management. A study was conducted to assess the financial literacy of jasmine farmers. Standardized knowledge test was employed to assess the financial literacy of farmers. For that, 100 farmers from Erode and 100 famers from Madurai district was surveyed. The collected data were analyzed using percentage analysis, multiple regression and factor analysis. It was concluded that, Erode farmers has high financial literacy than Madurai farmers. The results revealed that, age, education, experience, farm income, years of relationship with the bank, size of landholding, frequency of bank visit and bank account were significantly influenced the financial literacy of farmer.

Key words: Financial literacy, NAIP, knowledge test and factor analysis