Abstract

The aim of this research is identifying the socio-economic condition of farmer households and the development of business diversification, knowing the income of farmer households from business diversification activities and the contribution to income of farmer households, and knowing the level of kindness business of farmer households in the Delanggu District of Klaten Regency. The research data used primary data. The sample of this research was 95 farmer households in Delanggu District. The method of data analysis used quantitative descriptive analysis and entropy index. The results showed that business diversification developed in the horizontal form of rice farming, off farming and non-farm. The average income of respondents from rice farming IDR. 12,914,737, - per year, off farming IDR. 12,906,667, - per year and non-farm IDR. 34,197,095, per year. The level of diversity of the average farmer household business works in 2 types of businesses. The lowest index value was 0.500, with an average 0.754 and a mode 0.693.

Highlights

  • The agricultural sector still plays an important role in national economic development, the role of the agricultural sector includes providing national food, forming Gross Domestic Product (GDP), absorbing labor in rural areas, generating foreign exchange, and functioning as a controller of inflation (Masruroh, 2013)

  • The income of farmer households comes from two sectors, namely the agricultural sector and the non-agricultural sector

  • The majority condition of socio-economic of farmer households have a family head in productive age which graduated from senior high school (SMA) and most of them have small rice field about (

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Summary

Introduction

The agricultural sector still plays an important role in national economic development, the role of the agricultural sector includes providing national food, forming Gross Domestic Product (GDP), absorbing labor in rural areas, generating foreign exchange, and functioning as a controller of inflation (Masruroh, 2013). The sector's contribution is second only to the processing industry. One of the food crop agricultural commodities that contributes greatly to the economy is one of them is rice food crops. In 2013-2017 the contribution of the agricultural sector, especially food crops, contributed significantly compared to other agricultural contributions, despite a downward trend. In 2013 the contribution of the food crop sector was 3.48 percent, in 2014 it decreased to 3.25 percent and in 2015 it had increased to 3.45 percent. In 2016 and 2017 there were decreases in a row of 3.43 percent and 3.22 percent, respectively (BPS, 2018). The role of the agricultural sector, especially food crops is still used as a national buffer for Central Java (Mambu, 2013).

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