Average Farm Income Research Articles

Determinants of profit among maize farmers in Osogbo ADP zone of Osun State, Nigeria

Maize output in Nigeria is declining and worsening economic situations continue to afflict rural households increasing the level of food insecurity. This study examined the determinants of profit among maize farmers in Osogbo ADP zone of Osun State, Nigeria. Primary data were sourced using a well-structured questionnaire from a total of 120 maize farmers. A two-stage sampling procedure was employed to select the farmers. The analytical tools used were descriptive statistics, farm budgetary techniques and regression analysis. The results showed that maize cultivation was dominated by male farmers with an average age of 50 ± 9.4 years. Additionally, less than 30.8% of the maize farmers had formal education above secondary school. The farming experience of the maize farmers was 14.7 ± 5.3 years and the average farm size was estimated at 7.85 ± 2.15 acres. The average farm income was N207 314.40 ± 23 290.95 with the Benefit-Cost Ratio (BCR) of 2.24. The major constraints of maize production, ranked based on their higher values of WMS, were the high labour costs, expenditures for pest and disease control, and the high costs of fertilizers The determinants of farm income that had positive relationship and were significant at 1% level of significance include years of formal education, expenditure on fertilizer while age of the framers negatively influenced the farm income. Also, the farm size and years of farming experience were positive and statistically significant to farm income at 5%. The study suggests a policy focus of training farmers in modern farming system and implement sustainable farm inputs subsidy programs. Keywords: determinants, profit, maize, farmers, Nigeria

Digital transformation at what cost? A case study from Germany estimating the adoption potential of precision farming technologies under different scenarios

This study addresses the research gap in understanding the low adoption of Precision Agriculture Technologies (PATs) by extrapolating regional trends from in-depth farm-level analyses. Focusing on a smallholder region in Germany, it investigates the adoption limits of PATs, questioning whether the low rates are due to unknown economic thresholds and how these thresholds can be influenced. Six PATs are evaluated, along with the impact of six potential measures to increase adoption rates, using predictive economic modeling and scenario analysis. Findings confirm low adoption rates, peaking at 4.61 % for automatic guidance and 17.73 % for site-specific fertilization, highlighting that current strategies are only partially effective, especially for precision weeding, site-specific seeding, planting, and spraying. Fortunately, targeted interventions for less adopted PATs enhance average farm income, which may increase their broader acceptance. The study advocates for targeted, technology-specific strategies over broad measures like subsidies, emphasizing the effectiveness of private sector initiatives like machinery cooperatives and service providers in improving adoption. The study concludes that greater PAT uptake in agriculture is only possible if realistic expectations are set by all stakeholders and tailored strategies are developed to promote a comprehensive digital transformation of the sector.

Determinants Of Adoption Of Soil Conservation Technologies Among Smallholder Farmers In Izzi Local Government Area Of Ebonyi State, Nigeria

The study examined the determinants of adoption of soil conservation technologies among smallholder farmers in Izzi Local Government Area, Ebonyi State, Nigeria. Multistage sampling technique was used to select 160 respondents for the study. Data collected with the aid of structured questionnaire were analyzed using descriptive and inferential statistics. Results showed that farmers in the area had average age of 47 years and operated on 1.5 hectares of land with an average farm income of ₦152,125. Further analysis revealed that the smallholder farmers had an adoption index of 2.21 which implied that they used at least two (2) soil conservation technologies with an average source of information of 2.72 showing that they got information on soil conservation technologies from at least three different sources. Furthermore, results revealed erosion, deforestation, reduced soil fertility and indiscriminate bush burning as the forms of soil degradation existing in the area while adopted coping strategies were crop rotation, use of organic manure, intercropping practices, appropriate use of fertilizer, use of mixed cropping system and planting of trees. The results of OLS multiple regression analysis showed that the coefficient of multiple determination (R2 ) of the regression model was 0.760. This implies that seventy-six percent (76%) of the variations in level of soil conservation technology adoption were accounted for by the independent variables socio-economic characteristics of the smallholder farmers included in the model. The result of factor analysis identified social, institutional and economic factors as constraints militating against adoption of soil conservation technologies among the smallholder farmers in the study area. The rejected hypothesis concluded that there is a significant relationship between the socioeconomic characteristics of smallholder farmers and their adoption of soil conservation technologies in the area. Based on the findings, the study recommends; that local government authorities and NGOs working in areas that are prone to soil fertility losses should introduce programmes that will train and promote soil conservation technologies to be adopted by farmers to improve productivity; provision of Infrastructural facilities such as good road network to ensure easy movement of agricultural inputs to the farmers field; and Agricultural extension services which are saddled with the responsibility of disseminating timely, complete actionable information should be re-positioned and strengthened to ensure smallholder farmers access to information, through appropriate channels.

Perceived Effects of Climate Variability on Crop Production in Imo State, Nigeria

This study assessed the effect of climate variability on crop production in Imo State, Nigeria. Climate variability has direct impacts that cause vulnerability to the natural and social systems through changes in average temperatures, temperature extremes and extreme weather events like flooding and droughts. The study described the socio-economic characteristics of the crop farmers, ascertained crop farmers’ knowledge on climate variability, determined the perception of farmers on climate variability, and examined the perceived effects of climate variability on food crop yield production. A multistage sampling procedure was used in the selection of one hundred and eighty-three (183) crop-based farmers. Structured questionnaires were used in obtaining data and the data collected were analyzed using frequency, percentage, mean score and multiple regression analysis. Findings show that the mean age was 48.77 years. Majority (71.58%) were females. Majority (78.14%) were married with an average household size of 8 persons. Most (65.57%) had secondary education with an average farming experience of 21.18 years. Average farm size and farm income were 1.24 hectares and ₦33,000.00 respectively. Findings show that farmers had major knowledge of climate variability as zero/minimum tillage practices (99.45%) and knowledge on rain-water harvesting (97.81%) amongst others. Farmers perceived climate variability (x̄ = 3.49), starts late and ends early (x̄ = 3.45), extremes in temperatures (x̄ = 3.39), too much/heavy rains (x̄ = 3.396) and long dry spells during the season (x̄ = 3.51), amongst others. Crop farmers further perceived that climate variability has resulted in declining crop yields (x̄ = 3.35), increased water scarcity on farm (x̄ = 3.45), high incidences of pest and diseases (x̄ = 3.29), and increased rate of erosion/flooding (x̄ = 3.50) amongst others. The study strongly recommends that the extension services should be strengthened so as to pay farmers regular visits to ascertain their challenges on the effects of climate variability and know where to assist them.

COMPARATIVE STUDY OF RICE FARMING INCOME WITH THE APPLICATION OF DIRECT SEED PLANTING SYSTEM (TABELA) AND TRANSPLANTING (TAPIN)

Over time, the consumption of rice as a food commodity has always increased along with the increase in population. In cultivating rice plants, of course it requires a lot of labor, especially in planting activities. However, the availability of agricultural labor is currently decreasing and the cost is expensive. One technology that can be a solution to this problem is the direct seed planting system (tabela). This study aims to compare farmers' income with the implementation of the two planting systems. Differences in planting systems will affect production costs, so it will also affect farm income. The data analysis used was farm business analysis and independent sample t-test. The results of the analysis found a significant difference between the average income of farmers with tabela and tapin systems. The average income of tabela farmers was Rp 31,373,962/ha/planting season and tapin farmers was Rp 27,267,175 with a difference in income of Rp 4,106,787/ha/planting season.

Cost and revenew analysis of arrowroot farming in Yogyakarta, Indonesia

Abstract Arrowroot is a commodity that has been cultivated for generations in Yogyakarta. Arrowroot can grow on land that is exposed to little sunlight that can be planted on yard or even developed on a large scale on land under crop stands so that it can increase land productivity and increase farmers’ income. Arrowroot can be used as raw material for flour. As a result, Garut is a viable local food source with economic potential that should be considered in future. This study aimed to determine the costs, revenues, incomes, profits, and efficiency of arrowroot farming in Yogyakarta, Indonesia. The basic research method used in this research is descriptive and analytical. This study used survey techniques to conduct door-to-door interviews with arrowroot farmers. The purposive sampling method was used to select the sample, with respondents being farmers who actively cultivated arrowroot every year and were registered in Department of Agriculture and Food Security of Yogyakarta. The total research sample was 92 farmers spread across 3 sub-districts in Yogyakarta. Cost analysis, revenue, income, farm profit, and the R/C ratio were all used in the analysis. The results showed that the average farming costs in one growing season consisted of explicit costs of IDR 1,634,728.07/ha and implicit costs of IDR 21,034,373.62/ha. The average farm revenue was IDR 13,491,298.19/ha. The average farm income was IDR 11,856,570.12/ha. The average farm profit was -IDR 9,177,803.50/ha. The average R/C ratio on explicit costs was 8.25, meaning the farm is efficient, and the average R/C ratio on total costs was 0.60, meaning the farm is inefficient.

To Reform and to Procure: An Analysis of the Role of the State and the Market in Indian Agriculture

Since the early 2000s, some Indian states started allowing private traders to buy directly from farmers outside the state-regulated market system. The experience of these states can shed light on the impact of market-oriented reforms and the role of public procurement. Using individual-level National Sample Survey Data on agricultural wages and a new dataset on state-level average real farm income per cultivator for 18 major Indian states between 1987–2012, this paper shows, using both a difference-in-difference and a triple difference framework, that marketing reforms alone did not contribute to higher farm incomes and agricultural wages. However, when these reforms were coupled with public procurement at the minimum support price, farm incomes and agricultural wages significantly improved. Our results suggest that market-reforms and public procurement at minimum support prices were complements which together contributed to raising rural incomes in states like Haryana, Madhya Pradesh, and Andhra Pradesh.

Analisis Pendapatan Petani Karet di Dusun Sei Jera Desa Sungai Landai Kecamatan Mestong

This study aims to determine how the characteristics of rubber farmers in Sei Jerat Sub-Village and analyze how the income of rubber farmers in Sei Jerat Sub-Village. The type of data collected is questionnaire data and direct interviews to the field. The population in this study was the community in Sei Jerat Hamlet with a total of 544 people. Determination of the sample is done using Random Sampling as many as 80 respondents who have a rubber plantation farming business. The results of the research from 80 people the number of respondents the average farm income per person is Rp 24,141,120 / year with total fixed and non-fixed costs of Rp 5,475,181 / person / year then the total income per person is Rp 18,683,939 / year and the average income per person is Rp 1,557,078 / month rubber farming income in the research location is lower than the minimum wage of Jambi Province.

Optimization model growth and equalization of farmer’s income in the rotiklot dam service area on the border area of Indonesia-Timor Leste

The study aims to analyze optimization models of growth and income distribution. The study used a survey method in Fatuketi Village, Kakuluk Mesak District as the Rotiklot Dam service area, with a sample of 300 respondents. Data analysis uses a multi-objective linear programming model for growth and equal distribution of agricultural income. The results of the analysis show that an income of IDR 11,576,192.00 per year is an income that optimizes growth and income distribution. Optimizing growth and equal distribution shows that the average income of farmers in the first planting season was IDR. 4,132,108 and IDR. 7,444,084 in planting season II. The marginal land used is 300 ha with the volume of water needed to meet all plant needs as much as 1,986,565.16 m3. Agricultural income can still be increased for the third planting season because there is still excess water of 948,434.84 m3.

Analisis Risiko Usahatani Kelapa Sawit di Kecamatan Lariang Kabupaten Mamuju Utara

The need for risk analysis is caused by the farmers who often face the problem of uncertain farming profits. The limitation of farmers causes it to control the climate and the market price. This uncertainty causes the risk of production and income which will influence the farmer's profits. This research aims to know the risk of production and income and also to know the ways farmers mitigate the risk. This research was conducted in Lariang, North Mamuju Regency. The research location was chosen by using Purposive Sampling. The time of the research was from May to July. The respondent sample was chosen by using Simple Random Sampling with a total response of 32 samples. The data analysis method used income analysis, coefficient variation analysis (CV), and descriptive analysis. The result of this research showed the average farmer's income in Lariang was 23.866.632,-/Ha/Year. Risk of production with a coefficient variation (CV) of 0.034 it was found that palm farming in Lariang was in low-risk production and income. The way that can be used by the farmers to mitigate the risk of production is to provide appropriate potions to overcome pests and provide fertilizer stock. Mitigating the risk of income is that the farmers should pay more attention to the harvest moon, fruit transport, and also TBS quality to earn high sales.

Farmland Loss and Livelihood Effects: Diamond and Gold Mining Implications on Farmers’ Sustainability in Sierra Leone

Mining businesses are problematic in developing countries because they intrude on farming ecologies, rendering arable lands almost unavailable to farmers and making them unproductive. This paper expounds on the impact of agricultural land loss on mining activities in Kenema, as farming is the primary source of income for the locals; nevertheless, small-farm holdings are a definitive characteristic of this district. Using perceptions-based data gathered from 358 respondents, the software STATA 14 was employed to analyse the ordinal logit model. The results suggest that though mining operations gave the community quick income and short-term jobs, the negative impacts on farmers’ livelihood and outcomes surpass the benefits. The challenges farmers face from mining activities are Water pollution, displacement from their lands, and agricultural land degradation, and most get into illegal mining due to these constraints. This is mirrored in the average cultivation area of about 4 acres, with a relatively small harvest and an average monthly farm income of less than USD 40. Moreover, the results disclosed that the mines had increased land concession with less or no land reclamation or restoration. Therefore, it is recommended that all parties involved use a standardized method of communication that will prevent mining-related farmland encroachment. Moreover, it is good that authorities empower environmental law-enforcing bodies to monitor mining operations closely to ensure total compliance with the laws of the land management system.

Gender differentials in income and resource utilization among maize farmers in the Osogbo Agricultural Development Programme (ADP) zone of Osun State, Nigeria

Gender inequality still plagues agricultural production in developing nations. One hundred and twenty (120) maize farmers were selected from the study area using a multi-stage sampling procedure. Both descriptive and inferential statistics, such as a two-sample t-test and ordinary least squares multiple regression, were used to assess the data acquired. The results of the descriptive analysis showed that the average farm size of male and female farmers was determined to be 2.1 ha and 1.7 ha respectively and that 66.7% and 81.8% of male and female farmers, respectively, had formal education. Males had a lower income per hectare (N53.657) than females did (N68.181) on average. The t-test's outcome revealed a significant difference between male and female farmers' cumulative average farm income. Age (p < 0.01), years of farming experience (p < 0.05), farm size (p < 0.01), and tractor operation costs (p < 0.01) were significant income determinants among female maize farmers, whereas years of formal education (p < 0.05), years of farming experience (p < 0.05), farm size (p < 0.01), and labor cost (p < 0.05) were significant income determinants among their male counterparts. The practical value of this study is confirmation that maize farming is a profitable farming enterprise option for both male and female farmers in the study area. Since women are capable of using resources effectively to reach higher levels of farm income than men, the government should launch certain specialized empowerment programs aimed at them. Keywords: sex, maize, resource, utilization, disparity

ANALYSIS OF EFFECT OF SOCIO-ECONOMIC CHARACTERISTICS ON THE PERCEPTION OF FARMERS ON GIANT LAND SNAIL (Achatina achatina) PRODUCTION IN NORTH CENTRAL STATES, NIGERIA.

The study analysed Sixty-four snail farmers were sampled through multiple-stage sampling technique. Descriptive and inferential statistics were used to achieve the specific objectives of the study. The study found that snail farming was carried out by young active farmers whose average age was 44 years, with an average of 7 years experience in snail farming, small-scale in nature because their average stock size was 787 snails. The average household size and annual farm income was 6 persons and N350,000.50 respectively. The farmers’ perception was high (83%) for snail farming and this was linked to the several benefits like increased income, enhancement of family welfare, a source of animal protein, source of employment, means of turning kitchen waste and ways of engaging family labour, derived from snail production. Snail production was asserted to be low (55%) due to constraints like slow rate of growth, theft, pest and disease (just to mention but a few), the farming of snail was noted to be economically viable. Socio-economic characteristics such as farmers gender, age, education, marital status, household size and farm income were identified to be significant variables to level of snail production. By recommendation, there is need for research to focus on breeding snails that are early maturing and fast growing to help overcome the problem of slow growth and used by the farmers for production purpose.

Dampak Peremajaan Sawit Rakyat (PSR) Terhadap Kesejahteraan Petani Kelapa Sawit Di LabuanBatu Utara, Sumatera Utara

Palm oil is a leading commodity in North Sumatra, but the age of oil palm plants was old and must be immediately rejuvenated From surveys and identification problems of palm oil plantation with farmers in South Kualuh District, North Batu Regency, farmers are constrained by capital and knowledge for oil palm plant rejuvenation. The purpose of this study is to determine the welfare impact of oil palm farmers in the implementation of the smallholder oil palm replanting program (PSR) and determine the factors that influence the impact of smallholder oil palm replanting (PSR) on the welfare of oil palm farmers and will be carried out from March 20 to May 31, 2023. The sampling technique uses proportional random sampling with 52 respondents. Data collection method with questionnaires tested for validity and reliability. The data analysis method uses the Paired T test and Multiple Linear Regression Test. The results showed that there was a difference in the average income of farmers before and after participating in the Smallholder Palm Oil Replanting (PSR) program where based on the results of the Paired T test obtained a significance value of ≤ 0.05 and a t-value calculated > t table that shows smallholder oil palm replanting (PSR) can improve the welfare of oil palm farmers. variables Consumption Patterns, FFB Prices, Capital Assistance, and variables The availability of study programs has a significant effect and positive value. However, the variables Land Area and Income have a partial effect and are negative. This shows that the variables of Land Area and Income have a negative or inverse proportion to the Impact of Smallholder oil Replanting (ISR) on the welfare of oil palm farmers in South Kualuh District.

How to determine temporal yield variances of various cropping systems for modelling farmers’ production risk – Illustrated by results from a long-term field trial

When making choices among different cropping systems like conventional farming, organic farming or cropping systems without pesticides, but with mineral fertilizers, risk averse farmers will not only account for expected (i.e. average) farm income but also for income stability. The smaller the variance of a farm’s total contribution margin, the more stable is the income from a cropping system. The overall income variance can be calculated and included in quadratic risk programming models that apply the expected value-variance criterion when temporal (co-)variances of the contribution margins of the single crops are known. In this context, there is a lack in empirically well-founded approaches to identify the latter. Thus, taking a single farmer’s perspective, we first outline a way to derive temporal (co-)variances of contribution margins for crops grown at one location. Second, neglecting variances of crop prices and variable costs, we show for different cropping systems how to consistently estimate temporal crop yield (co-)variances based on available yield data from a long-term field trial by the Julius Kühn-Institut in Dahnsdorf (Germany). The four cropping systems were (b1) without fertilizer and pesticides; (b2) without fertilizer but with pesticides; (b3) with fertilizer but without pesticides; and (b4) with fertilizer and pesticides. For each system, we estimated a covariance matrix for yield data of winter rye, winter barley and pea grown from 1998 to 2021 using a mixed effects model. Moreover, we calculated means, standard deviations and coefficients of variation for the different crop yields. The size of the (co-)variances found is a valuable indicator for their order of magnitude to be used as input in quadratic risk programming with the intention of optimizing a cultivation program that accounts for individual farmers’ preferred levels of risk. Further, our statistical approach should be applied to other long-term field experiments to get deeper insights into average yield level and (co-)variance structures of crops grown in different cropping systems.

Growth Response and Cost-benefit of Red Sokoto Goats Feedlotted on Crop Residues during Dry Season

Fifteen Red Sokoto bucks were assigned to five treatment diets designated as T1, T2I, T3, T4 and T5 with cowpea husk inclusion levels at 0%, 25%, 50%, 75% and 100% to replace cowpea haulms. The feeding trial lasted for 90 days. Daily feed intake was measured by subtracting the leftover feed from the amount offered within 24 hours. Also, weight changes were measured by taking the weight of each animal at the end of the week and the weekly initial weight subtracted from it. The running cost was measured by summing all costs incurred in the production. Parameters measured were daily feed consumption, daily weight changes, daily running costs in the form of man-hour labor charges, drugs, revenue, transportation and other charges. Data obtained were subjected to analysis of variance (ANOVA) and net farm income (NFI) to carry out the cost-benefit analysis. Results of the research showed no significant differences (p>0.05) among the treatment means for initial body weight 5.53, 5.71, 5.87, 5.93 and 5.90 for T1, T2, T3, T4 and T5 respectively. Feed intake varied among the treatments probably due to inclusion levels of cowpea husk. T5 had the highest feed intake (0.260kg) followed by T4 (0.25kg) and T3 (0.24kg) with significant differences (p<0.05) across treatments. Similarly, bucks on T5 performed well in terms of body weight gains (4.60kg) followed by T4 (4.13kg) and T3 (3.47kg) with significant differences (p<0.05) across treatments. The feed conversion ratio was highest in bucks on T3 (6.01) where cowpea husks and haulms inclusion were 50:50 because animals can utilize nutrient pool from both feedstuffs. Bucks on T3, T4 and T5 had the highest revenue (₦3,1600.00) followed by T1 and T2 (₦25,600.00). Profits per naira invested varied across treatment groups with T1 (₦6,850.00), T2 (₦6,700.00), T3 ₦12,800.00), T4 (₦12,650.00) and T5 (₦12,150.00). Costs per kilogram weight gain were ₦2,072.00, ₦1,881.00, ₦1,808.00, ₦1,528.00 and ₦1,409.00 for treatments T1, T2, T3, T4 and T5 respectively. The economic analysis of the research showed an average gross farm income of ₦3,140.00 per head of animals which implies a profitable venture using these crop residues.

Analysis of Profitability in Pepper (Capsicum spp) Production in Ogba/Egbema/Ndoni Local Government Area, Rivers State, Nigeria

The study was centered on analysis of profitability in pepper (Capsicum spp) production in Ogba/Egbema/Ndoni Local Government Area, Rivers State, Nigeria. The study utilized multistage sampling to select 172 farmers in the study area. Structured copies of questionnaire were appropriated in eliciting information from the farmers. Out of the 172 copies of questionnaires dispatched, only 160 were retrieved. Data for the study were analysed using frequency count, percentages, mean score, farm budgeting model, and multiple regression. The result showed that 69.4% of the marketers were female while 30.6% were male. In the same vein, 57.5% farmers were majorly within the age range of 31-43 years and 50.6% of these farmers were married. Contrastingly, while 100% of the farmers used agrochemicals in their farming operation, the 100% did not apply fertilizer in their farms. Results from the farm budgeting model showed that average annual net farm income (profit) was ?59,234.52 for 0.12 hectares. The average gross farm income realized per annum stood at ?180, 8250, the variable cost was ?407,665.6 and the estimated gross margin was ?1,400,584 per annum. Results from mean score analysis showed that the most dominant constraint was flooding with a mean score of 3.91875 greater than the 2.5 benchmarks. Following these findings, the study recommended that government should encourage unemployed youths to go into pepper production so that the gap between demand and supply can be narrowed.

The Impact of Agricultural Land Consolidation on Production and Income of Rice Farming Household in Sukoharjo Regency

This study aims to determine the implementation of land consolidation of rice farming in Sukoharjo Regency in terms of physical and management consolidation, the effect of land consolidation on production, income, and risk of rice farming income. The research location is determined by the purposive sampling method. The sampling method of this research was a simple random sampling of 30 farmers participating in the consolidation. Descriptive analysis was used to determine the implementation of physical consolidation and risk farming management consolidation, while to determine the production, income, and income risk, quantitative and statistical analyzes were used. The consolidation implementation's analysis shows that land consolidation in Sukoharjo Regency has been carried out physically and in management, but some indicators have not been implemented. The average production of farmers before consolidation was 14.424,49kg/ha/year, while after consolidation, it was 14.829,40 kg/ha/year. The average income of farmers' rice farming was higher after consolidation, IDR 44.516.782/ha/year, and IDR 41.654.356/ha/year for before consolidation. The income risk of rice farming in the Sukoharjo Regency is high before consolidation, was 73.02%, while after consolidation was 74.42%.

Role of Indigenous Social Organizations in Enhancing Food Security: A Case Study of Some Selected States in Niger Delta Region, Nigeria

The study examined role of indigenous social organizations in enhancing food security in selected states of in the Niger Delta region of Nigeria. It examined the farmers’ characteristics, years of experience and roles carried out by indigenous social organizations, ascertained perceived benefits of participating farmers, and; identified the factors that limit farmers from effectively participating in these organizations. Primary data used were obtained through the use of reliable and validated question instrument. The respondents numbering 224 were selected through multi- stage sampling technique. The generated data were analyzed with the use of descriptive and inferential statistics. Results showed that most (58.48%) of the farmers were also civil servants and they (73.66%) were into part-time farming. Participants of indigenous social organizations (ISO) average farm size, farm experience, and farm income were 3.01 ha., 11.4 years and N280,750.00 respectively. The regular activities carried out by the respondents were savings and loans, provision of credits to members, crop farming, supply of farm inputs and processing of farm products (they had means ? 2.00). Perceived benefits achieved from participating in their groups include improvement of farm output, farm income, standard of living and farming skills. The difference in mean farm income between participants and non – participants was N116,964.29 (significant at the 5% level) and it was in favour of group participants. In addition, Logistic regression showed that farm size (b = 1.758), farming status (b = 0.839), farming experience (b = 0.259) and participation index (b = 0.243) were significant to respondents farm income. Based on findings the study recommends the need for the indigenous group leaders to seek and incorporate members’ views in times of designing activities for the group. Also, leaders of the groups should ensure that benefits accruing to the groups are equitably distribute

Analysis of Income and Transaction Costs of Purchasing Farmer’s Sugarcane at Wonolangan Sugar Factory, Probolinggo Regency, East Java


 Sugarcane is the main raw material for making sugar in Indonesia. Wonolangan Sugar Factory is one of the sugar processing factories located in Probolinggo Regency. PG (Pabrik Gula) Wonolangan Sugar Factory as buys sugarcane using Weight Sugarcane Buying System (SPT-ST) and a Potential system (SPT-SP). The difference in the sugarcane purchasing system is expected to provide different income to farmers, therefore the purpose of this study is to determine the income level of farmers in the SPT-ST and SPT-SP system; fine out the cost of economic transactions in the SPT-ST and SPT-SP system. This research method uses analytical methods with transaction cost analysis and independent t-test analysis, as well as quantitative methods with income analysis. The results showed: (1) Average income of farmers in the SPT-ST is Rp. 32,810,020.87/Ha, and Rp. 30,625,224.50/Ha for farmers with the SPT-SP sales system; (2) The transaction costs for farmers in the sugarcane buying system (SPT-ST) are Rp. 271,310/season and Rp. 679,583/season for SPT-SP farmers. The proportion of transaction costs to the income of SPT-SP farmers is 2.3%, while for SPT-ST farmers it is 0.8%. The proportion of transaction costs to the total costs incurred by SPT-ST farmers was 0.7%, for SPT- SP farmers it was 1.7%; (3) There is no significant difference between the average income of farmers with the SPT-ST and SPT-SP sales system in the PG Wonolangan. The difference in the average income is Rp. 2,157,776.06/Ha.