Exploring the determinants of smallholder farmer’s net farm income from cattle production in Timor-Leste
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While farmers in Timor-Leste have long been involved in subsistence cattle production, their economic status and living standards have not seen significant improvement. This study aimed to analyze the annual net farm income from beef cattle production and its determinants among smallholder farmers in Timor-Leste. Data was collected through face-to-face interviews with a sample of 100 small farmers from three Timor-Leste cities: Bobonaro, Ermera, and Viqueque, with 43, 31, and 26 respondents, respectively. The multistage sampling method was used to select the respondents, and multiple regression analysis was employed to investigate the determinants of net farm income from cattle production among smallholder farmers in Timor-Leste. The study found that most farmers were between 41 and 60 years old, illiterate, small land holdings, and a non-commercial objective for raising cattle. Grazing freely was the most common rearing method, and the average herd size was 15.62 heads. An annual total cost of cattle production was USD 2,584.42, consisting of a total variable cost of USD 2,272.77 and a total fixed cost of USD 311.65. The total revenue generated was USD 3,645.09, resulting in a gross margin of USD 1,372.32 and a net farm income of USD 1,060.67. The multiple regression analysis indicated that the number of lands for cattle rearing had a significantly positive effect on smallholder farmer’s net farm income from cattle production, while a dummy variable for Bobonaro, total variable cost, and age had a significantly negative effect. The study's findings suggest that increasing cattle rearing land and decreasing the total variable cost by managing feed costs effectively could enhance smallholder farmer’s net farm income from cattle production. Furthermore, transferring husbandry technology and management to young farmers who readily adopt new practices can enhance cattle production productivity and net farm income.
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