Analysis of Factors Affecting Rice Farmer Satisfaction with Subsidized Fertilizer Purchases in Babaksari Village Gresik Regency East Java

Abstract

he subsidized fertilizer program in Babaksari Village, Dukun District, Gresik Regency has greatly helped ease the burden on rice farmers by cutting fertilizer prices as one of the rice cultivation infrastructures, but of course this program does not always work well, causing farmers to feel dissatisfied. This study aims to analyze the influence of product quality factors, prices, subsidized fertilizer policies, and service quality on the satisfaction of rice farmers in Babaksari Village, Dukun District, Gresik Regency. The sampling method is random sampling. The study sample amounted to 62 rice farmers. Data is processed using the PLS-SEM method through WARP PLS 7.0 software. The results showed that product quality (X1), price (X2) and subsidized fertilizer policy (X3) factors had a positive and significant effect on rice farmers’ satisfaction in purchasing subsidized fertilizers. Meanwhile, the service quality factor does not have a positive and significant effect on farmer satisfaction in purchasing subsidized fertilizers. The problem lies in the quality of subsidized fertilizer services by core members of farmer groups, therefore it is necessary to evaluate and change the mechanism of subsidized fertilizer services, by prioritizing the comfort and safety of farmers when purchasing subsidized fertilizers.