FACTORS AFFECTING PROFITABILITY OF SMALL SCALE FARMING IN SOUTHERN TRINIDAD and TOBAGO Report as inadecuate




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This study examined several possible factors determining the profitability of small scale crop farmers in Trinidad and Tobago in the Caribbean. Industrial/urban influence on profit efficiency was tested by the creation of a special variable (IFOUR). This variable along with farming and socio-economic variables were incorporated into a translog augmented stochastic profit frontier. The significance of coefficients was tested as well as the calculation of the elasticity of profit with respect to the wage rate. The study found a significant negative impact of wage rates on profitability. Also the age of the farmer negatively affected profitability, while the number of years farming had a positive effect. This latter variable also significantly influenced both the one-sided error and idiosyncratic error terms. However IFOUR measuring industrial/urban influence did not significantly affect the profitability. The farmers had a mean profit efficiency of 48.4%, which was low in international comparisons.

Keywords: Caribbean Farming ; Stochastic Profit Frontier

Subject(s): Agribusiness

Agricultural and Food Policy

Agricultural Finance

Crop Production/Industries

Productivity Analysis

Issue Date: 2014-07

Publication Type: Journal Article

DOI and Other Identifiers: ISSN 2147-8988 (Other)

PURL Identifier: http://purl.umn.edu/186263 Published in: International Journal of Food and Agricultural Economics, Volume 02, Number 3 Page range: 1-18

Total Pages: 18

Series Statement: Vol 2

No 3

Record appears in: Muğla Sıtkı Koçman University > Department of Economics and Finance > International Journal of Food and Agricultural Economics (IJFAEC)





Author: Patterson-Andrews, Hazel ; Pemberton, Carlisle A.

Source: http://ageconsearch.umn.edu/record/186263?ln=en







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