THE IMPACT SOCIAL CAPITAL OF BEEF CATTLE FARMERS IN GROUP ON FARMER’S HOUSEHOLD WELFARE: A STUDY IN WEST SUMATERA, INDONESIA

Abstract

This study aims to analyze the impact of social capital dimension in a group of farmer’s and
analyze the role of farmers social capital in cattle raising in groups to the development of
farmers business and on increased farmer’s household welfare. This research was the case
study based on a group of farmer’s in Padang Limau Sundai village, West Sumatera
province. The respondents of research were 43 members of the group. The method of
analysis the data was Structural Equation Modeling using Smart-Partial Least Square (PLSSEM). The results of the study found that the joining of farmers into groups for joint cattle
raising did not increase their social capital such as lack of trust, reciprocity, participation,
cooperation, solidarity, togetherness and social responsibility of them. However, the social
capital has exist as a basis the establishment of groups like togetherness and solidarity found
have a positive influence to the development of the farmers business in a group and then also
influences welfare of farmers household.