Agricultural Digitalization: Can This Transformation Increase Farmers' Income In East Java?

Abstract

The era of the industrial revolution 4.0 has encouraged various economic sectors to utilize technology and information in their activities, including the agricultural sector. This study provides an overview of the impact of agricultural digitization on farmers' income and examines the characteristics of farmers in East Java who have and have not utilized agricultural digitalization as a first step toward agricultural extension targets. The data comes from the August 2022 National Labor Force Survey in East Java conducted by BPS-Statistics Indonesia with a sample size of 7.852 farmers carrying out agricultural businesses. The t-Student test results show that farmers who utilize agricultural digitization have an average income higher than those who do not utilize it. The binary logistic regression results also show that digitization of agriculture, gender, education, agricultural business field, and business status also affect farmers' income. The results random undersampling analysis and random oversampling classification and regression trees results show that there are two types of characteristics of farmers in East Java who take advantage of agricultural digitization, namely farmers who graduated at least junior high school and farmers who graduated elementary school/equivalent, come from X, Y, or Z generations, and work assisted by permanent workers/paid workers.