ANALYSIS OF THE IMPACT OF SUGARCANE MANAGEMENT SYSTEM ON THE FARMERS INCOME IN MAGETAN DISTRICT, INDONESIA

Abstract

The under developing management system of the sugarcane farmers in Magetan District, Indonesia. is the contract and non-contract management. The choice taken by the farmers has implications for income. There are differences in income between the two management systems. This study has three objectives. First, to determine the factors that influence the level of farmers income. Second, to find out the factors that influence decisions in the selection of the management system. Third, to find out the different impact in each management system. The research approach method used in this study is quantitative. The management system chosen by sugarcane farmers becomes treatment effect for their income, where the number 1 is for the contracts and 0 for non-contract management. Data collection techniques were carried out by interviewing and distributing questionnaires to 80 respondents. The data analysis tool used is the treatment effect model analysis with the Stata 12.0 program. The results of this study indicate that the main factors that influence farmers' decisions are experience, opportunity cost, wealth. While the factors that cause differences in the amount of income are the scale of production, technology, insight and family labor. The conclusions of this study are: (1) sugarcane farmers still have quite good prospects compared to businesses outside sugar cane plantations; (2) the income of non-contracted farmers is higher than the contract ones; (3) the factors that influence income are the area of the land, fertilizer costs, working costs, organization experience, land area, education and farm management.

Keywords

• Management system
• sugarcane
• farming
• farmer income
• treatment effect model