The problems under study were: the level of poverty and household welfare of farmers in Pati Regency, Central Java and the factors of agricultural resource that influence it, namely: agricultural input, business capital aid, technology, rural infrastructure, marketing of product, agribusiness development, and employment. The development of the agribusiness sector is the economic transition process required for the improvement and sustainability of income and social welfare in an agrarian society. The fundamental problems faced by farmers in Indonesia are the lack of access to sources of capital, limited market accessibility, arable land is narrow, not yet optimal utilization of technology, agricultural productivity remains low, and farmers' organizations are still weak. Currently, the empowerment of rural communities by the Government through the PUAP and LM3 program. Not yet known how the contribution of strengthening the agricultural resources in the development of agribusiness sector, employment, poverty reduction, and improving the welfare of rural household in Pati Regency. This study used explanatory method to explain the causal relationships in the model of household welfare of farmers in rural through hypothesis testing. Data compiled in the form of cross- sectional between farmer group alliances in Pati Regency. The research model is formulated as a model of Cobb-Douglas and analyzed using linear regression through ordinary least squares (OLS) method. The findings of research were: (1) The agricultural input, business capital aid, technology, rural infrastructure and marketing of product positively affect agribusiness development, (2) The agribusiness development had positive effect on employment, (3) The agribusiness development and employment negatively affect the level of poverty, and (4) The employment positively affect household welfare of farmers, while the level of poverty had negative effect on household welfare fo farmers. Some response variables relatively elastic on the variable stimulus, while others in-elastic. Low elasticities indicated the utilization of production factors for the agribusiness development were not optimal, especially in technology, marketing of product and rural infrastructure. The agribusiness development and employment were also not enough to push the reduction of poverty and improving the household welfare of farmers as a consequence. Keywords : Household welfare of farmers, poverty, employment, agribusiness development