DYNAMICS OF FARMER EXCHANGE RATE: POLICY INTERVENTIONS IN THE FRAMEWORK OF IMPROVING FARMERS' WELFARE IN KUTAI KARTANEGARA DISTRICT

  • Nike Widuri Lecturer in the Agribusiness Study Program, Faculty of Agriculture, Mulawarman University
  • Gisky Andria Putra Lecturer in the Agribusiness Study Program, Faculty of Agriculture, Mulawarman University
Keywords: Farmer Exchange Rate, Policy Intervention, KutaiKsrtanegara

Abstract

Economic development is a change that occurs continuously through a series of combinations of processes to achieve something better, namely an increase in per capita income that continues in the long term. Agricultural development aims to improve the welfare of farmers and contribute to regional economic development. One indicator that can be used to measure the level of welfare of farmers in Indonesia is the Farmer's Exchange Rate (NTP). The aims of this study are: (1) to analyze the dynamics and influence of GRDP on farmers' exchange rates, and (2) to formulate policies that can intervene to increase farmer exchange rates in KutaiKartanegara Regency. The data collected is in the form of secondary data consisting of (1) Farmer Terms of Trade (NTP) in KutaiKartanegara Regency in 2016-2020; (2) PDRB Data for KutaiKartanegara Regency in 2015-2020; (3) Samarinda Human Development Index (HDI)data for 2015-2020; and (4) Samarinda CPI data for 2016 – 2019. To analyze farmers' exchange rates using descriptive analysis and to analyze factors that affect exchange rates using simple linear regression analysis. Regression analysis is used to determine the relationship (influence) between GRDP and farmer's FTT which includes the correlation coefficient(r), the coefficient of determination (R2), the F-test, and the t-test. The results of the study show that: (1) The dynamics of farmer exchange rates consist of farmer exchange rates for food, horticulture, plantations, livestock, and fisheries. The largest farmer exchange rate is in the plantation sector with an average exchange rate of 102.40. Furthermore, the food sector (97.36), livestock (95.25), and fisheries (96.43); (2) The results of a simple linear regression study with a significance of less than 0.05, namely 0.027, means that there is a positive influence between the GRDP of KutaiKartanegara and the Farmer Exchange Rates of KutaiKartanegara Regency; and (3) policies that can intervene are subsidized fertilizer policies and control the distribution and price of subsidized fertilizers.

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Published
2023-08-06
How to Cite
Widuri, N., & Andria Putra, G. (2023). DYNAMICS OF FARMER EXCHANGE RATE: POLICY INTERVENTIONS IN THE FRAMEWORK OF IMPROVING FARMERS’ WELFARE IN KUTAI KARTANEGARA DISTRICT. GPH-International Journal of Business Management, 6(07), 170-180. https://doi.org/10.5281/zenodo.8218649