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Citation Information

Type Journal Article - International Journal of Food and Agricultural Economics
Title Factors Affecting Profitability Of Small Scale Farming In Southern Trinidad & Tobago
Author(s)
Volume 2
Issue 3
Publication (Day/Month/Year) 2014
Page numbers 1-18
URL https://ideas.repec.org/a/ags/ijfaec/186263.html
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.

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