International Journal of Agriculture Extension and Social Development

author(s)
Malavika Geetha and Dr. Gopika Somanath

abstract
Financial literacy is essential for farmers as it enables informed decisions about saving, borrowing, insurance, and digital transactions. These skills are crucial for managing income fluctuations and production risks. This study assessed the financial literacy of small and marginal paddy farmers in Palakkad district, Kerala, during 2024-25. A teacher-developed test of 30 questions covering savings, credit, insurance, and digital services was administered to 120 farmers purposively selected from Kuzhalmannam and Alathur blocks. Farmers were categorised into three groups: low, medium, and high literacy. Descriptive statistics summarised the distribution of literacy levels, and multiple regression analysis was conducted with the financial literacy score as the dependent variable. Results showed that 34.2% of respondents had low literacy, 34.2% medium literacy, and 31.7% high literacy, reflecting a moderate overall level. Regression analysis revealed that education, innovativeness, and the adoption of digital banking had a positive influence on literacy, while female gender was negatively associated. Other socio-economic factors did not show significant effects. The findings highlight the need to enhance financial education, promote digital literacy, and address gender-based disparities. Strengthening these areas can improve farmers’ financial capabilities, support better risk management, and increase resilience in an uncertain agricultural economy.