Impact of economic factors changes on paddy farmers

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  • 1.Journal of Economics and Sustainable DevelopmentISSN 2222-1700 (Paper) ISSN 2222Vol.4, No.6, 2013Impact of Economic Factors Changes on Paddy FarmersHousehold Income in Lebak Swampland(Case of Swampland in HSU District, South KalimantanMuhammad Fauzi Makki1 Doctoral Program of Agric1 Department of Agriculture Economic, University of Lambung Mangkurat , Indonesia.2,3,4 Department of Agricultural Economic, Uni* E-mail of the corresponding authorAbstractPaddy farmer household at Lebak swampland are poor because of low income. Efforts to increase householdpaddy farmers income in Lebak swampland are alwayand expansion area (extensificationfarm household incomes in the Lebakmodels, with simultaneous equations. The results showed that the increase in input prices of paddy (seeds,fertilizers, pesticides and labor outside the family) would decrease farmer household income. The increased ofinput price followed by an increased in paddy output price in same proportion were able to increase farmhouseholds income. Seed subsidies are also able to increase the household income. In contrast; paddy areaexpansion or extensification would decrease household income. Therefolebak swampland is not priority choice.Keywords: Lebak swamplands; farmer income; extensification; inputs price, price of outputI. INTRODUCTIONSwamplands typology is an alternative area developed to address the needs oSwampland resources in Indonesia reached 39 million ha, spread across the island of Sumatra, Kalimantan;Sulawesi and Papua (Noor, 2004). Noor (2007) states one typology that has swamplands is Lebak swamplands.The land has become one alternative in order to achieve an increase in paddy production as well as to increaserevenue in order to strengthen farm households economy. In fact there are many farmers plant paddy in the lebakswamplands is poor because of low income, as wellKalimantan. In this context, the poverty is structural poverty. This can not be solved only with shortsolutions, such as direct cash assistance.Paddy farmers income in Lebak Swampcaused by natural factors, also vulnerable to changes in input price and output. Theoretically; interventionscommonly performed in rice fields with different typologies, namely rain fed and irrigation toprovision of subsidized inputs especially seed subsidy and expansion policy (approach is not exactly an attempt to increase farm household income when applied inChanges in economic factors or external factors include price factor; subsidies and expansion policy(extensification) has always been an important issue inis the extent impact of these economic factors changes on householdOn the other hand; household swampnot separate the production aspects to consumption, with the main objective to meet family needs (Ellis, 1988Mendola, 2007; Kusnadi, 2005; Elly, 2008). Efforts to increase household farmers income is manifested in inputd Sustainable Development1700 (Paper) ISSN 2222-2855 (Online)116Impact of Economic Factors Changes on Paddy FarmersHousehold Income in Lebak Swampland(Case of Swampland in HSU District, South KalimantanProvince-Indonesia)Muhammad Fauzi Makki1*M. Muslich Mustadjab2Nuhfil Hanani3and Rini Dwiastuti1 Doctoral Program of Agricultural Economic, University of Brawijaya, Indonesia1 Department of Agriculture Economic, University of Lambung Mangkurat , Indonesia.2,3,4 Department of Agricultural Economic, University of Brawijaya, Indonesiamail of the corresponding author: mfauzimakki@gmail.comswampland are poor because of low income. Efforts to increase householdswampland are always associated with the economic factor as price; subsidiesextensification). This study aims to analyze the impact of economic factors change onLebak swampland. Data is analyzed by using agricultural economodels, with simultaneous equations. The results showed that the increase in input prices of paddy (seeds,fertilizers, pesticides and labor outside the family) would decrease farmer household income. The increased ofan increased in paddy output price in same proportion were able to increase farmhouseholds income. Seed subsidies are also able to increase the household income. In contrast; paddy areaexpansion or extensification would decrease household income. Therefore, the expansion program option atswampland is not priority choice.lands; farmer income; extensification; inputs price, price of outputSwamplands typology is an alternative area developed to address the needs of food, especially paddy.Swampland resources in Indonesia reached 39 million ha, spread across the island of Sumatra, Kalimantan;Sulawesi and Papua (Noor, 2004). Noor (2007) states one typology that has swamplands is Lebak swamplands.e one alternative in order to achieve an increase in paddy production as well as to increaserevenue in order to strengthen farm households economy. In fact there are many farmers plant paddy in the lebakswamplands is poor because of low income, as well as in the District of Hulu Sungai Utara (HSU), SouthKalimantan. In this context, the poverty is structural poverty. This can not be solved only with shortsolutions, such as direct cash assistance.Swampland is not able to meet household needs because of low productivitycaused by natural factors, also vulnerable to changes in input price and output. Theoretically; interventionscommonly performed in rice fields with different typologies, namely rain fed and irrigation toprovision of subsidized inputs especially seed subsidy and expansion policy (extensificationapproach is not exactly an attempt to increase farm household income when applied inrs or external factors include price factor; subsidies and expansion policy) has always been an important issue in paddy farmers income in Lebak swampis the extent impact of these economic factors changes on household paddy farmers income inswampland paddy farmers in the Lebak is a subsistence farm households. They donot separate the production aspects to consumption, with the main objective to meet family needs (Ellis, 1988Mendola, 2007; Kusnadi, 2005; Elly, 2008). Efforts to increase household farmers income is manifested in inputwww.iiste.orgImpact of Economic Factors Changes on Paddy FarmersHousehold Income in Lebak Swampland(Case of Swampland in HSU District, South Kalimantanand Rini Dwiastuti4Brawijaya, Indonesia1 Department of Agriculture Economic, University of Lambung Mangkurat , Indonesia.versity of Brawijaya, Indonesiaswampland are poor because of low income. Efforts to increase households associated with the economic factor as price; subsidies). This study aims to analyze the impact of economic factors change onswampland. Data is analyzed by using agricultural economic householdmodels, with simultaneous equations. The results showed that the increase in input prices of paddy (seeds,fertilizers, pesticides and labor outside the family) would decrease farmer household income. The increased ofan increased in paddy output price in same proportion were able to increase farmhouseholds income. Seed subsidies are also able to increase the household income. In contrast; paddy areare, the expansion program option atlands; farmer income; extensification; inputs price, price of output.f food, especially paddy.Swampland resources in Indonesia reached 39 million ha, spread across the island of Sumatra, Kalimantan;Sulawesi and Papua (Noor, 2004). Noor (2007) states one typology that has swamplands is Lebak swamplands.e one alternative in order to achieve an increase in paddy production as well as to increaserevenue in order to strengthen farm households economy. In fact there are many farmers plant paddy in the lebakas in the District of Hulu Sungai Utara (HSU), SouthKalimantan. In this context, the poverty is structural poverty. This can not be solved only with short-termto meet household needs because of low productivitycaused by natural factors, also vulnerable to changes in input price and output. Theoretically; interventionscommonly performed in rice fields with different typologies, namely rain fed and irrigation to increase revenue,extensification). However, thisapproach is not exactly an attempt to increase farm household income when applied in Lebak swamplands.rs or external factors include price factor; subsidies and expansion policyswampland. The questionfarmers income in Lebak swampland.is a subsistence farm households. They donot separate the production aspects to consumption, with the main objective to meet family needs (Ellis, 1988;Mendola, 2007; Kusnadi, 2005; Elly, 2008). Efforts to increase household farmers income is manifested in input

2. Journal of Economics and Sustainable DevelopmentISSN 2222-1700 (Paper) ISSN 2222Vol.4, No.6, 2013allocation decision-making behavior and regulation of production in farming management, as well as thebehavior of decision-making related to l(1988); Sadoulet and Janvry (1995); decision to increase farm households income always associated productionaspects, consumption and manpower allocation. The approach is through agriculHousehold economic studies typically use a basic model as originally proposed by Chayanov (Ellis, 1988),Becker (1965); Gronou (1977), which were further developed by Singh; Squire and Strauss (1986). Economicbehavior of farmers in countryside based on land typology have a particular characteristic, such asswamplands, becomes important because agriculture still plays an important role in many countries includingIndonesia (OECD, 2003).Several previous studies associated withby Abdurrahman (1992) - approached only on production aspects. Various research or other articles relate tovarious aspects that becoming research focus but still relevant farm household efarmers income. The article studied by(2005) Jean-Paul Chavas; R. Mivhael Petrie and Roth (2005); Dewbre and Mishra (2007); Fariyanti et al(2007); Fariyanti (2008); Cornejo, et alFang Wen-I (2010); and Chi kezie et alon dry land typology. Therefore, to answer thefarmers income in Lebak swampland to reduce poverty, then this article aims to analyze the impact of economicfactors changes, including: (1) increase in input and outputexpansion of paddy plant, each of household farmers income inSimulations conducted to determine the impact of changes in household rice farmers income in the event of pricechanges, subsidies and expansionproduction factor inputs simultaneously cover the cost of seeds, fertilizer, pesticides and labor outside the familyof 10%, (b) multiple form simulation increase in totalincrease, (c) seed subsidy provision forII. METHOD2.1. Data and ProceduresThis research uses primary data. Methods for determination of sample farmesampling. First, Sungai Pandan subdistrict selected purposively. The consideration is the largest area ofcrop in HSU district. From this sub districts, it is selected Rantau Karau Hulu Village. The justificationpaddy farmers if this village are : (a) diversification in farming other than paddy, particularly in duck and eggproduction; as well as fishing business; (b) most farmers work on offimplementing paddy in shallow lebak area (census on paddy production at Rantau Karau Huluof family) in people Rantau Karau Huluit is obtained various population census to calculate the number of respondents used in study sample. Thenumber of the sample is calculated based on formula byrandom from farm households in each subpredetermined based on above equation. Based on this method, it is selected 100 samples of farmers.This study uses agricultural economic householdspecification used are described as follows:d Sustainable Development1700 (Paper) ISSN 2222-2855 (Online)117making behavior and regulation of production in farming management, as well as themaking related to labor allocation. According to Singh; Squire and Strauss (1986), Ellis(1988); Sadoulet and Janvry (1995); decision to increase farm households income always associated productionaspects, consumption and manpower allocation. The approach is through agricultural household models.Household economic studies typically use a basic model as originally proposed by Chayanov (Ellis, 1988),Becker (1965); Gronou (1977), which were further developed by Singh; Squire and Strauss (1986). Economiccountryside based on land typology have a particular characteristic, such aslands, becomes important because agriculture still plays an important role in many countries includingSeveral previous studies associated with increased paddy farmers income in Lebak swampapproached only on production aspects. Various research or other articles relate tovarious aspects that becoming research focus but still relevant farm household economic behavior in relation tofarmers income. The article studied by Sawit (1993); Kusnadi (2005); Cornejo et al (2005); Hendriks and MishraPaul Chavas; R. Mivhael Petrie and Roth (2005); Dewbre and Mishra (2007); Fariyanti et alet al (2007); Cristian and Herne Henningsen (2007);et al (2011). However, all research and article is motivated by farming is doneon dry land typology. Therefore, to answer the questions above and parallel efforts to increase householdland to reduce poverty, then this article aims to analyze the impact of economicfactors changes, including: (1) increase in input and output paddy price; ( 2) paddy seed subsidy, and (3) theplant, each of household farmers income in Lebak swampland.Simulations conducted to determine the impact of changes in household rice farmers income in the event of pricechanges, subsidies and expansion of rice land. Simulation was done through: (a) increase in rice priceproduction factor inputs simultaneously cover the cost of seeds, fertilizer, pesticides and labor outside the familyof 10%, (b) multiple form simulation increase in total paddy production cost by 10 % with 10% rice priceincrease, (c) seed subsidy provision for paddy 10%, (d) paddy acreage expansion in the lebakThis research uses primary data. Methods for determination of sample farmers for primary data are stratifiedsampling. First, Sungai Pandan subdistrict selected purposively. The consideration is the largest area ofcrop in HSU district. From this sub districts, it is selected Rantau Karau Hulu Village. The justificationpaddy farmers if this village are : (a) diversification in farming other than paddy, particularly in duck and eggproduction; as well as fishing business; (b) most farmers work on off-farm and nonlebak area (watun I) and middle lebak area (watun II). Firstly, it is conducted aRantau Karau Hulu villagers to determine population range. From 314 KK (headRantau Karau Hulu villagers; there were 257 KK become paddy farmers. From this census,it is obtained various population census to calculate the number of respondents used in study sample. Thenumber of the sample is calculated based on formula by Parel et al (1973). Samples were taken with purposirandom from farm households in each sub-village (dusun). The goal is to obtain the amount of samplepredetermined based on above equation. Based on this method, it is selec...

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