Risk Preference of Farmer Beef Cattle Smallholder in West Java

Beef cattle farm is an economic activity that its correlation relatively high with ecology condition, ever more its activity be dominated by smallholder with farm scale of 1—3 head beef cattle, so the capital of feeder cattle are component production costs relatively large. By doing so, lose one head of cattle means losing some of the capital that had been invested in its farm. This condition has implications for the behavior of farmers in managing its farm. The farmers in the decision-making act reluctant to risk so there is a bit of a program or package of new technologies to improve the performance of farm rejected. Therefore, this study analyzed the preferences of farmers against risks, and find out the socio-economic conditions that be the deciding factor on farmer preference for risk.The method used was a survey with multistage random sampling. The numbers of samples in this study were 150 people from three different areas, namely: District of Bandung, Subang, and Pangandaran (South Ciamis). Data analysis model used in relation to this research problem was the model's utility function and Component Factor Analysis (CFA). The results showed that the overall breeders had a reluctant attitude to risk (risk averter). This is indicated by the value of x3, namely -63,692.693 < 0; and socio-economic factors that determine the preference of farmers against risk are age, education, and experience for farm management; while the business scale factor, number of dependents, and ownership determine the size of the gross margin.