2000
2006
Titled
Formal
Other
Titled
Formal
Other
Number unconstrained
206
6
85
140
82
120
Number in ARC
242
20
54
242
212
200
Number ARB
586
43
113
328
320
155
Number cooperative members
317
28
133
180
124
168
Number fully amortized
202
5
19
144
132
39
Titled—HH with at least one parcel/lot owned that is titled- TCT, EP, CLOA-Individual; Formal—Mother CLOA, CLT, Deed of Sale/Mortgage as proof of ownership; Other—Lease contract, Tax declaration, Certificate of stewardship, none. Unconstrained HH—(a) borrow only from formal creditors; (b) no need to borrow. Constrained HH—(a) no access or no capacity; (b) borrow from informal creditor only; (c) borrow from both formal and informal creditors
Table 5-8 also shows that there are more ARB households in the titled category but a sharp increase in the number of household in the formal category is observed in 2006. This seems consistent with the attempts of the DAR to fast track accomplishments on land distribution through the issuance of collective CLOAs. It could also mean that several households have acquired titled farmlands through sale or mortgage (e.g., land pawning). Membership in cooperative and ownership of titled land seems not strongly linked. Households that rent-in land can be members of cooperatives and thus could have access to formal credit The positive effect of title on access to credit is supported by regression results. The econometric model is based on a notional credit demand function that considers both lender’s loan offer decisions and household’s perception of its credit status. The latter include households that consider themselves being rationed based on previous loan application or from their own assessment of the likelihood to obtain a loan. The model is estimated with a binary probit procedure using observable household-specific and lender-specific characteristics as regressors.
127