The Influence of Social-Economic on The Risk Mitigation Strategy of Beef Cattle Farmers in Banyuasin Regency, Indonesia

Abstract

AbstractLivestock business is one of the most strategic sectors for the development of agriculture in Indonesia. One of the current livestock businesses that has the potential to be developed is beef cattle farming. Every livestock business will face various risks that can affect the results of its business if not anticipated and prepared for handling. This study aims to analyze the influence of the social economic characteristics of beef cattle farmers on the risk mitigation strategy used by beef cattle farmers in Banyuasin Regency. This study employed a descriptive method using a survey as the main strategy of data collection. The study was carried out in two disaster-prone subdistricts in Banyuasin Regency, namely Tanjung Lago and Muara Telang. The sample selection of farmer respondents used a quota, based on which there were 30 farmers from each subdistrict. Therefore, according to the simple random sampling method, 60 farmers were involved in this study. The influence of the social economic characteristics of beef cattle farmers on the risk mitigation strategy was analyzed using regression analysis logistics. The results showed that the average age of farmers is within the productive age. The average number of family members is four people. The longest farming experience is eight years. The number of livestock ownership of each farmer is three livestock units (LU). The average income of farmers is still below the district minimum wage. Beef cattle farmers in Banyuasin Regency tended to apply risk reduction (85%) and avoidance strategies (15%). The number of livestock owned (p<0.05) is a factor that negatively affects the opportunities of farmers to carry out risk mitigation strategies, while the income of farmers in one month (p<0.10) is a factor that positively affects the opportunities of farmers to carry out risk mitigation strategies. It could be concluded the large number of cattle tends to reduce the opportunity for farmers to carry out risk reduction strategies in conducting beef cattle business. This means that the greater the number of livestock owned, the higher the probability of farmers to avoid risk. If the number of livestock owned is increasing, the possibility of loss will also increase. Therefore, farmers tend to avoid these risks rather than reducing all potential risks.