Abstract
Fertilizer price subsidies aim to increase the purchasing power of poor farmers in order to increase their productivity and farm income. This study aims to analyze the urgency of the fertilizer subsidy policy, and the development of the subsidized fertilizer HET ratio and the price of grain at the farmer level. The study was conducted in West Java Province, 2020. The data used include primary data and secondary data. Data analysis was carried out quantitatively and descriptively qualitatively. The results showed that the fertilizer subsidy policy was given to farmers who farmed a maximum of 2 hectares per season. In Indonesia, the total number of households using land with a scale of < 2 ha reaches 89%, which are small farmers and require input subsidies. Furthermore, the ratio of output prices to urea fertilizer (2012-2021) tends to increase by 0.97%/year. This shows that the development of subsidized fertilizer prices is relatively small compared to the development of government purchasing prices for paddy. Therefore, in order to improve the efficiency of fertilizer use and maintain the volume of subsidized fertilizer in the midst of a limited fertilizer subsidy budget, efforts must be made to be more targeted and efficient.
Highlights
In the agricultural production process there are a number of necessary production factors such as: land, labor, fertilizers, seeds, pesticides and others
Through the provision of subsidies to fertilizers, it is hoped that the productivity of agricultural products will increase so as to increase production and achieve food self-sufficiency
Based on the description above, this study aims to analyze the urgency of the fertilizer subsidy policy, the development of the ratio of the highest retail price (HRP) of subsidized fertilizer and the price of grain at the farm level
Summary
In the agricultural production process there are a number of necessary production factors such as: land, labor, fertilizers, seeds, pesticides and others. Fertilizer is one of the main production factors that are very decisive in increasing the productivity of food crop farming. To increase effectiveness and increase benefits optimally, the main production factors must arrive at farmers with the right six principles, namely: the right amount, the right dose, the right type, the right price, the right quality/quality, and the right time. The fertilizer subsidy policy carried out by the government is seen as being able to ease the burden on farmers. The policy is based on the important position of fertilizer, which is an important input in agricultural production, receiving special attention from the government. Subsidized fertilizers are fertilizers that are widely used for the main food crop, namely rice
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