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Income Determinants of Dairy Cattle Farmers Participants in the Insurance Program in Ngajum District, Malang Regency, Indonesia

Document Type : Original Research

Authors

Department of Agricultural Economics, Tribhuwana Tungga Dewi University, Malang, Indonesia

Abstract

Livestock businesses have various risks of death that can occur due to accidents, natural disasters, and disease outbreaks. To anticipate the risks that occur, the government seeks to help farmers through agricultural insurance, including the cattle and buffalo business insurance program (AUTSK= Asuransi Usaha ternak Sapi/Kerbau). This study aims to analyze the implementation of the AUTSK program and the factors that affect the income of dairy farmers. The research was conducted in Ngajum District, Malang Regency with the consideration that this area is a center for dairy cows. Data were collected from 40 dairy farmers obtained by simple random sampling. Furthermore, the data was edited and compiled, and then analyzed using the multiple linear analysis method (which was transformed from Cobb Douglas function). The results showed that implementation of the AUTSK program in Malang Regency tended to be less attractive to farmers because the fulfillment of claims was not timely (the period of disbursement of funds was too long). Farmer education, livestock ownership and the cost of concentrate feed have a significant effect on the income of dairy farmers. Government needs to re-evaluate implementation of livestock insurance so that farmers can continue their business. Limitation of this study is difficulty of separating cost of production facilities for each cow, so that the expenditure for lactating cows is also difficult to calculate correctly.

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COPYRIGHTS

©2022 The author(s). This is an open access article distributed under the terms of the Creative Commons Attribution (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, as long as the original authors and source are cited. No permission is required from the authors or the publishers.

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International Journal of Management, Accounting and Economics
Volume 9, Issue 5 - Serial Number 94
May 2022
Pages 286-299
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