Chapter 3

Methodology

The Research Design

The research for this study is Quantitative descriptive correlational research design.

Quantitative descriptive correlational research design is used to examine the relationships

between variables of interest. It is a method of research that focuses on describing and

understanding the relationships between variables without manipulating them. (SCISPACE

2023). The quantitative descriptive correlational design will allow researchers to systematically

analyze numerical data to investigate the correlation between financial literacy and agricultural

outcomes among farmers.

The Research Locale

The study will be conducted at Imbayao, a barangay located in the municipality of

Valencia, Bukidnon, is a scenic area surrounded by verdant landscapes and rolling hills.

Imbayao is predominantly agricultural, with rice fields, fruit orchards, and vegetable gardens

defining the local scenery. The community thrives on farming activities, cultivating crops such

as rice, corn, and various fruits. The bustling marketplaces in Imbayao serve as hubs of

economic activity, where farmers and vendors gather to sell their produce, showcasing the

town's agricultural richness and economic dependence on farming.

The Participants of the Study

The study will focus on engaging farmers residing in Lumbayao, Valencia City,

Bukidnon, ensuring that participants meet specific criteria : (1) Participants must currently

reside in Lumbayao, Valencia City, Bukidnon. This ensures that the study captures insights

from individuals directly embedded in the local farming community. (2) Participants should be

actively engaged in farming as their primary occupation. This ensures that the selected
individuals possess first-hand knowledge and experiences related to agricultural practices in

the area. (3) Prospective participants should demonstrate a willingness to engage in the study

and provide honest, accurate information. This commitment ensures the reliability and integrity

of the data collected.

Given that Lumbayao, Valencia City, Bukidnon, have a population of nearly 500

registered farmers, with approximately 200 currently active, the study will utilize simple

random sampling to select participants. This approach ensures that each active farmer within

the population has an equal chance of being included, thereby enhancing the representativeness

of the sample and the validity of the study's findings.

Sampling and Sampling Procedure

The researchers will employ Slovin’s formula to determine the sample size needed for

the entire population of Farmers at Lumbayao, Valencia City, Bukidnon. Following this

determination, they implemented simple random sampling to select participants for the study.

Determining the participants in the study, the researcher utilized slovin’s formula with an error

margin of 5%, which means a 95% accuracy rate. It is computed as n=N/ (1+ne2), whereas:

n=no. of samples, N= Total population, and e= margin of error, which resulted to n=200/

(1+200*0.0025). Therefore, the researchers need to have 133 randomly selected participants

from a total population of 200 with a 5% margin of error.

The Research Instrument

. The survey instrument will have 3 parts. The first part will present the research

objectives, risks, benefits, confidentiality, participation, and the researcher's contact details.

The second part will consist of three indicators for Financial Literacy. The third part will

contain the indicators of agricultural productivity. The instrument the researcher will use to

measure the level of financial literacy will be adapted and revised from "Measuring Financial
Literacy: Based on the Item Response Theory" by Viera, Moreira, and Potrich (2020), using

the four-point Likert scale. While the questions on Agricultural Productivity will be adapted

from "Measuring Farm Financial Performance" by Maryland Cooperative Extension (2013).

Data Gathering Procedure

The time and effort as well as the researchers’ cooperation will put together and and

will work as one in developing a good and less pressure for the selected respondents. Below

are the specified actions in gathering data:

1. The researcher will write a communication letter to the dean of the institution, seeking

permission to conduct the study.

2. Once permission is granted by the dean, the researcher will request permission from the

barangay to conduct a survey questionnaire among its residents, who will be the selected

respondents.

3. After obtaining permission from the barangay, the researcher will seek consent from the

respondents. The respondents will be given the survey questionnaire to answer.

4. The researcher will gather and analyze the answers provided by the respondents.

5. Finally, the researcher will interpret the results of the data analysis.

Scoring Procedure

The data will be gathered from the sample to address the problems presented in chapter

1.The data that will be collected from the survey instruments will then be summarized and

tabulated according to the following scales, description and statement for independent and

dependent indicators. The researcher will be using a Likert-scale questionnaire for the research.
The respondent will be asked to rate their level of agreement from 1-4 (1-Strongly Disagree,

4-Strongly Agree).

Scale Range Description Statement for Statement for

independent dependent

variable indicators

indicators

4 3.50- 4.00 Strongly Agree Financial Profitability,

knowledge, liquidity, and

Financial solvency, it

behavior and indicates that

Financial small-scale

attitude are farmers are

highly exhibit by experiencing

small-scale strong financial

farmers health and

indicating a high stability.

level of financial

literacy.
3 2.50- 3.49 Agree Financial Profitability,

knowledge, liquidity, and

Financial solvency, it

behavior and indicates that

Financial small-scale

attitude are farmers are

general possess generally

by small-scale experiencing

farmers favorable

indicating a financial

good level of conditions.

financial

literacy.

2 1.50- 2.49 Disagree Financial Profitability,

knowledge, liquidity, and

Financial solvency, it

behavior and indicates that

Financial small-scale

attitude are not farmers might be

possess by facing financial

small-sale challenges.

farmers

indicating a lack

of adequate
 financial

literacy.

1 1.0- 1.49 Strongly Financial Profitability,

Disagree knowledge, liquidity, and

Financial solvency, it

behavior and indicates that

Financial small-scale

attitude are not farmers are

possess by experiencing

small-scale significant

farmers financial

indicating a difficulties.

critical lack of

adequate

financial

literacy.
Treatment of Data

Treatment of Data The information will be gathered, tabulated, coded, and subjected to

statistical analysis. Statistical tools will be used to measure survey data for better results and

comprehensible interpretation of the data gathered. The following statistical techniques will be

employed to treat the survey data corresponding to the Problem identified in this study. For

problem 1- 2 Descriptive statistics will be used to present data using summary means, standard

deviation, frequency, and percentage distribution. For problem 3, Pearson's (R) Product-

Moment correlation will be employed to measure or identify relationships among farmer's

financial literacy and agricultural productivity.

Ethical Consideration

The ethics of this research will prioritize the respect and protection of individuals

involved. The researcher will ensure that physical and psychological harm is minimize, and the

risks and benefits of the study are distributed fairly among the population. Ethical duties will

be uphold and the researcher will avoids relationships that could potentially harm others or

hinder their success. Significant attention will be given before establishing multiple

interactions with any individual, such as selecting students. The consent procedure will ensures

that participants are fully informed of all essential risks and benefits. The researcher will

exercise caution when selecting participants, allowing them to decide what personal

information to disclose and under what circumstances. These ethical principles will aim to

prioritize the rights and welfare of individuals involved in the research process.