A Business Feasibility and Income Analysis of Sheep in Smallholder Farms

Abstract

Sheep business in smallholder farms plays a vital role as a source of income. Livestock are used as savings for unexpected expenses. The purpose of this study calculate the feasibility of sheep in smallholder businesses. The research was conducted in Hamparan Perak District, Deli Serdang Regency. The sampling method used stratified sampling, the number of samples using the quota sampling method after dividing the three villages based on livestock population, namely the low population group (100 heads), the medium population group (800 heads), and the high population group (5000 heads). The data analysis method used descriptive, with the observed parameters being breeder characteristics, income, and financial feasibility. The results revealed that men dominated sheep farmers the majority were aged 41–50 and 51–60 years. The majority had a high school education and had small-scale businesses; had 5–10 years of farming experience. Farmer income can meet production costs so that the income is positive or profitable and has an R/C value > 1. When net BC and gross BC are greater than one, the BEP value is greater than zero, the NPV value is greater than zero or positive, the IRR value with 24, and the PP values are 50 months. The business project’s age makes it financially feasible