Pengaruh Kredit Usaha Tani Terhadap Kesejahteraan Petani di Desa Kedung Lengkong, Kecamatan Dlangu, Kabupaten Mojokerto

Abstract

Suppose the agricultural sector is supported by a comprehensive and sustainable planning system and balanced with an adequate budget (such as capital). In that case, the role of the agricultural sector will be optimal. Farmers face the problem of funding; although many farmers can increase their yields, they cannot develop their own farming business if they do not have sufficient funds. Therefore, farmers will apply for loans from formal and informal financial institutions to overcome the lack of funds. However, credit growth has increased, especially in the agricultural sector, which is the agricultural sector where the government plans to improve the rural economy. Agricultural credit plays a crucial role in developing agriculture to obtain higher yields. If output increases, farmers' income will also increase, which will benefit farmers. The research method used was quantitative, with a sample of 100 people. This study used a population of 187 farmers in Kedung Lengkong Village, Dlangu District, Mojokerto Regency. The analysis used in this study was simple regression to understand the impact of credit availability on farmers' welfare. The hypothesis test results were that credit has a positive effect on welfare, with a regression coefficient value of 0.291. Credit helped farmers purchase fertilizers, seeds, and other things related to the need for farming so that the agricultural production process could run according to planning so that production results were in line with farmers' expectations to increase profits. These profits, in the end, became a source to meet the costs of meeting basic needs. The ability to meet these needs raised the standard of living and the community's welfare so that people could have a better quality of life.