Construction and Administration of Knowledge Test to Measure the Financial Literacy of Farmers in Tamil Nadu

Finance is a critical input for crop production. It has greater influence on timely availability of farm inputs and adoption modern crop production technologies at farm level. Frequent inflow and outflow of finance in crop production make farm financial management as complex one. This 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. In this context, a study was conducted to assess the financial literacy of jasmine farmers as jasmine is the crop which requires frequent cash inflow and outflow. Standardized knowledge test was employed to assess the financial literacy of farmers. For that, 100 farmers from Erode district and 100 famers from Madurai district were surveyed. It was concluded that, Erode farmers has high financial literacy than Madurai farmers as they have gained some knowledge through training programmes.