The Influence of KUR on the Profitability of Beef Cattle Farmers in Aska Village, South Sinjai District

Pengaruh KUR terhadap Profitabilitas Peternak Sapi Potong di Desa Aska, Kecamatan Sinjai Selatan

Abstract

Limited capital constrains the development of smallholder beef cattle enterprises. This study analyzes the association between People's Business Credit (KUR) access/use and the perceived profitability of beef cattle farmers in Aska Village, South Sinjai District, Sinjai Regency. A cross-sectional quantitative survey was conducted in June-July 2025. The analytical sample consisted of 87 KUR-user farmers selected from farmer groups. KUR and perceived profitability were each measured using five questionnaire items, and the relationship was examined using simple linear regression. All item-total correlations exceeded the reported critical value (r = 0.207), although internal consistency was modest (Cronbach's alpha = 0.400 for KUR and 0.538 for perceived profitability); therefore, the findings are interpreted as exploratory. KUR was positively associated with perceived profitability (b = 0.359; beta = 0.347; t = 3.410; p = 0.001), with R-squared = 0.120. Thus, the KUR score explained approximately 12.0% of the variation in perceived profitability. The results suggest that access to productive financing can support cattle-farming performance, particularly when funds are directed to business capital and breeding stock, but causal claims should be made cautiously because the study is cross-sectional and the measurement reliability is limited.