Determinant factors affecting farmers’ income of rice farming in Indonesia

Abstract

Indonesian people consume rice as their staple food, therefore rice farming is the main source of farming and livelihood for rural residents in Indonesia. Various policies that have been taken by the government to encourage increase in production and productivity of this commodity, but the results have not reached what was expected. This study aims to analyze the factors affecting income of rice farming in Indonesia. The data were analyzed using Multiple Linear Regression Analysis Model (MLRAM). As the results, it found that the significant factors affecting farmers’ income of rice farming in District Maros, South Sulawesi Province, Indonesia were productivity, selling prices, and production costs of the rice farming managed by an individual farmer. Then, the MLRAM is a good model in predicting the income of rice farming in the district. In general, these findings are a substantial indicator that imply the importance of improving farm management in order to increase productivity, stabilize selling prices and reduce production costs for rice commodity. By improving farm management, it is expected to encourage farmers to increase their income from rice farming specifically and encourage rural economic growth in Indonesia generally.