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Factors Affecting Profitability Of Small Scale Farming In Southern Trinidad & Tobago

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  • Patterson-Andrews, Hazel
  • Pemberton, Carlisle A.

Abstract

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.

Suggested Citation

  • Patterson-Andrews, Hazel & Pemberton, Carlisle A., 2014. "Factors Affecting Profitability Of Small Scale Farming In Southern Trinidad & Tobago," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(3), pages 1-18, July.
  • Handle: RePEc:ags:ijfaec:186263
    DOI: 10.22004/ag.econ.186263
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    References listed on IDEAS

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    1. Awoyemi Timothy & Adetola Adeoti, 2006. "Gender Inequalities and Economic Efficiency: New Evidence from Cassava‐based Farm Holdings in Rural South‐western Nigeria," African Development Review, African Development Bank, vol. 18(3), pages 428-443.
    2. Richard J. Sexton, 2000. "Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1087-1104.
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