Strategy to increase farmers’ productivity cocoa using structural equation modeling

Abstract

Cocoa is the main commodity and addition to foreign exchange for the country, especially Indonesia. Cocoa farming carried out by farmers still prioritizes experience passed down from generation to generation in the family and the result of interactions with other farmers in their community. The problem of cocoa farmers in Central Sulawesi Province requires the development of farmer resources. The problem in the cocoa business in Central Sulawesi Province is the low capacity of farmers in terms of knowledge, attitudes, skills, and capital resulting in low income and welfare for cocoa farmers. This research relates to the farmer’s interdependence strategy in increasing cocoa farming productivity. This study uses a survey design to explain the condition of cocoa farmers in Central Sulawesi Province. The research sample was set at 380 by fulfilling the statistical test rules using Structural Equation Modeling (SEM), using ten times 38 the number of indicators (observed variables) in the research model. The formulation of strategies to increase interdependence is as follows a strategy to increase farmer interdependence through increasing farmer capacity and a strategy to increase farmer interdependence through institutional support.