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Sustainability of cattle farming using analysis approach of Structural Equation Modeling (a study on dry land of Tanah Laut Regency, South Kalimantan, Indonesia)

The study was conducted in the village of Sumber Makmur and Central Banua, Takisung Sub-district, Tanah Laut Regency, South Kalimantan Province, Indonesia. This study aims to determine (1) factors influencing the sustainability of beef cattle farming (2) factors influencing the welfare of farmers, in form of a case study on the dry land. The study was conducted with survey method to 111 respondents using questionnaires that had been prepared previously (structured). The respondents were chosen by purposive sampling with criteria of having or farming beef cattle. The data were analyzed using Structural Equation Modeling (SEM), completion of the data was conducted using AMOS software. In this study, there are seven endogenous variables and two exogenous variables. The endogenous variables are environmental, economic, social, technology, physical, human, and institutional resources. The results show that environmental, economic, technological, physical, human, and institutional resources influence the sustainability of beef cattle farming; environmental, economic, technological, physical, human, and institutional resources influence, either directly or indirectly, the welfare of farmers (except social); and cattle farming sustainability variable influences the welfare of farmers. According to the result of this study, it is suggested that for the sustainability of beef cattle farming and to improve the welfare of farmers, several things that should be improved and considered are the improvements of resources, primarily environmental, economic, technological, physical, human, and institutional resources.

The study was conducted in the village of Sumber Makmur and Central Banua, Takisung Sub-district, Tanah Laut Regency, South Kalimantan Province, Indonesia. This study aims to determine (1) factors influencing the
sustainability of beef cattle farming (2) factors influencing the welfare of farmers, in form of a case study on the dry land. The study was conducted with survey method to 111 respondents using questionnaires that had been prepared previously (structured). The respondents were chosen by purposive sampling with criteria of having or farming beef cattle. The data were analyzed using Structural Equation Modeling (SEM), completion of the data was conducted using AMOS software. In this study, there are seven endogenous variables and two exogenous variables. The endogenous variables are environmental, economic, social, technology, physical, human, and institutional resources. The results show that environmental, economic, technological, physical, human, and institutional resources influence the sustainability of beef cattle farming; environmental, economic,
technological, physical, human, and institutional resources influence, either directly or indirectly, the welfare of farmers (except social); and cattle farming sustainability variable influences the welfare of farmers. According to the result of this study, it is suggested that for the sustainability of beef cattle farming and to improve the welfare of farmers, several things that should be improved and considered are the improvements of resources, primarily environmental, economic, technological, physical, human, and institutional resources.

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instituti<strong>on</strong>s, village instituti<strong>on</strong>s, and animal health<br />

center (Puskewan). The better the communicati<strong>on</strong><br />

relati<strong>on</strong>ship with these instituti<strong>on</strong>s will ensure the<br />

sustainability <str<strong>on</strong>g>of</str<strong>on</strong>g> the social aspect. Offices, extensi<strong>on</strong><br />

agencies, research institutes, financial instituti<strong>on</strong>s<br />

and animal health center provide informati<strong>on</strong> both<br />

technical/ n<strong>on</strong>-technical, facilities and assist farmers<br />

in managing <str<strong>on</strong>g>cattle</str<strong>on</strong>g> <str<strong>on</strong>g>farming</str<strong>on</strong>g>. This is supported by<br />

Rois’ research (2011) stating that in order to achieve<br />

sustainable agriculture, it is required the active role <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

agricultural extensi<strong>on</strong> agencies, the active role <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

farmers and farmer groups, research institutes and<br />

Higher Educati<strong>on</strong> Instituti<strong>on</strong>s.<br />

Technology resource variable (X4) c<strong>on</strong>sists <str<strong>on</strong>g>of</str<strong>on</strong>g> two<br />

indicators, namely indicators <str<strong>on</strong>g>of</str<strong>on</strong>g> mastery <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

technology (X4.1) and mastery <str<strong>on</strong>g>of</str<strong>on</strong>g> management <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

livestock/ knowledge (X4.2). The <str<strong>on</strong>g>analysis</str<strong>on</strong>g> results<br />

show that both indicators significantly measure<br />

technology resource variable (X4) for each indicator<br />

has P-value < 0.05 or the indicator is stated to be<br />

fixed (set). From the highest loading factor<br />

coefficient, it is obtained informati<strong>on</strong> that the<br />

indicator <str<strong>on</strong>g>of</str<strong>on</strong>g> livestock management mastery (X4.1)<br />

indicates the str<strong>on</strong>gest indicator <str<strong>on</strong>g>of</str<strong>on</strong>g> technological<br />

resources variables gauge (X4) compared to<br />

technology mastery (X4.2). Farmers can master the<br />

livestock management mastery better such as <str<strong>on</strong>g>cattle</str<strong>on</strong>g><br />

disease preventi<strong>on</strong>, lair age capacity and estimating<br />

<str<strong>on</strong>g>cattle</str<strong>on</strong>g> body weight if they will be sold. For the<br />

technology informati<strong>on</strong> such as <str<strong>on</strong>g>cattle</str<strong>on</strong>g> farms quality,<br />

feed technology, reproducti<strong>on</strong>, handling/ treatment <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

disease and lair age technology, if farmers need these,<br />

they will ask for the help from livestock technical<br />

pers<strong>on</strong>nel/ extensi<strong>on</strong> workers.<br />

Physical resource variable (X5) c<strong>on</strong>sists <str<strong>on</strong>g>of</str<strong>on</strong>g> two<br />

indicators, namely indicators <str<strong>on</strong>g>of</str<strong>on</strong>g> asset ownership<br />

(X5.1) and availability <str<strong>on</strong>g>of</str<strong>on</strong>g> means <str<strong>on</strong>g>of</str<strong>on</strong>g> producti<strong>on</strong> (X5.2).<br />

Table 3 shows that both indicators significantly<br />

measure physical resource variable (X5). The highest<br />

loading factor coefficient <str<strong>on</strong>g>of</str<strong>on</strong>g> asset ownership indicator<br />

(X5.1) is the str<strong>on</strong>gest indicator <str<strong>on</strong>g>of</str<strong>on</strong>g> physical resources<br />

variable gauge (X5). Factors measured from asset<br />

ownership is the existence <str<strong>on</strong>g>of</str<strong>on</strong>g> lair age, means <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

transportati<strong>on</strong>, communicati<strong>on</strong> equipment, <strong>land</strong><br />

ownership, <strong>land</strong> use and availability <str<strong>on</strong>g>of</str<strong>on</strong>g> water<br />

resources. These factors have more effects <strong>on</strong> the<br />

sustainability than physical resources aspects.<br />

Human resource variables (X6) c<strong>on</strong>sists <str<strong>on</strong>g>of</str<strong>on</strong>g> two<br />

indicators, namely indicators <str<strong>on</strong>g>of</str<strong>on</strong>g> labor (X6.1) and<br />

educati<strong>on</strong> level (X6.2). Table 3 shows that both<br />

indicators significantly measure human resource<br />

variable (X6). The highest loading factor coefficient is<br />

derived from level <str<strong>on</strong>g>of</str<strong>on</strong>g> educati<strong>on</strong> (X6.1) meaning that it<br />

is the str<strong>on</strong>gest indicator <str<strong>on</strong>g>of</str<strong>on</strong>g> human resource variable<br />

gauge (X6). Educati<strong>on</strong>al levels measured are formal<br />

and informal educati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> farmers and their family<br />

and <str<strong>on</strong>g>farming</str<strong>on</strong>g> experience. Good levels <str<strong>on</strong>g>of</str<strong>on</strong>g> educati<strong>on</strong>,<br />

presence <str<strong>on</strong>g>of</str<strong>on</strong>g> informal educati<strong>on</strong> and l<strong>on</strong>g time<br />

experience will be a good influence <strong>on</strong> the<br />

sustainability <str<strong>on</strong>g>of</str<strong>on</strong>g> human resources aspect compared to<br />

labor supply.<br />

Instituti<strong>on</strong>al resources variables (X7) c<strong>on</strong>sists <str<strong>on</strong>g>of</str<strong>on</strong>g> 2<br />

indicators, namely indicators <str<strong>on</strong>g>of</str<strong>on</strong>g> organizati<strong>on</strong>/ group<br />

quality (X7.1) and instituti<strong>on</strong>al relati<strong>on</strong>ships (X7.2).<br />

The <str<strong>on</strong>g>analysis</str<strong>on</strong>g> results <str<strong>on</strong>g>of</str<strong>on</strong>g> Table 3 show that both<br />

indicators significantly measure instituti<strong>on</strong>al resource<br />

variable (X7) for each indicator has P-value < 0.05 or<br />

the indicator is stated to be fixed (set). Instituti<strong>on</strong>al<br />

relati<strong>on</strong>ships have the highest loading factor<br />

coefficient, indicating that it is the str<strong>on</strong>gest indicator<br />

compared to the quality <str<strong>on</strong>g>of</str<strong>on</strong>g> organizati<strong>on</strong>/ instituti<strong>on</strong><br />

(X7.2). Instituti<strong>on</strong>al relati<strong>on</strong>ships in this <str<strong>on</strong>g>study</str<strong>on</strong>g> have<br />

more powerful effects. What are seen in these<br />

instituti<strong>on</strong>al relati<strong>on</strong>ships are relati<strong>on</strong>ships with<br />

financial instituti<strong>on</strong>s, extensi<strong>on</strong> workers, inseminator,<br />

<str<strong>on</strong>g>cattle</str<strong>on</strong>g> medics, <str<strong>on</strong>g>cattle</str<strong>on</strong>g> traders, other groups and<br />

marketing agencies. This <str<strong>on</strong>g>study</str<strong>on</strong>g> shows that<br />

instituti<strong>on</strong>al relati<strong>on</strong>ships influence the instituti<strong>on</strong>al<br />

sustainability. This is supported by Rois’ research<br />

(2011) in West <strong>Kalimantan</strong> stating that the availability<br />

<str<strong>on</strong>g>of</str<strong>on</strong>g> instituti<strong>on</strong> (micro finance, agricultural extensi<strong>on</strong><br />

services, research institutes support and Higher<br />

Educati<strong>on</strong> Instituti<strong>on</strong>s) supports for sustainable<br />

agriculture in form <str<strong>on</strong>g>of</str<strong>on</strong>g> : (1) cropping pattern and<br />

improving cropping index, (2) the maintenance <str<strong>on</strong>g>of</str<strong>on</strong>g><br />

<str<strong>on</strong>g>cattle</str<strong>on</strong>g>, (3) the availability <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>farming</str<strong>on</strong>g> capital, (4) the<br />

Rohaeni et al. Page 15

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