Analysis of Orange Commodity Role to Regional Development in Dairi Regency, Indonesia

Abstract

One of the efforts made to increase the contribution in the agricultural sector is by developing superior commodities. The study is aimed to determine the effect of land area, working capital, labor, technology, formal education, and non-formal education as factors in productivity of the fresh orange commodity to the income of orange farmers in the region of Dairi Regency, Indonesia. This research was conducted in Dairi Regency, North Sumatera Province, Indonesia. The sampling technique in this research is a proportionate stratified random sampling with a total sample of 94 people. Data collection method is using primary and secondary data. Data analysis using a multiple regression model and analysis of fresh orange commodity farming to regional development by using shift share analysis. Based on the results, that the income of farmers from each planting season is 16,914,404 rupiah,- /farmer. The result of hypothesis shows that the productivity of orange farming is a 56,6% influenced by independent variable (land area, working capital, labor, technology, formal education and non-formal education). Based on shift share analysis obtained that the agricultural sector shows a positive amount of 7.890 rupiah or 25.6 percent, which means the growth of agriculture sector in Dairi relatively faster if compared with the growth of GDP of the same sector at the national level.