Effect of Rural Agriculture Development through Village Fund Allocation on Increasing Income and Farmer Welfare
Keywords:Agriculture, Rural, Village Fund, Welfare, Farmers
This research was conducted in villages receiving village fund budget assistance in Gunung Sari Village, Lahumoko Village, and Karya Mulia Village, North Buton Regency. The research problem was the low productivity of farming due to the not yet integrated farming system and upstream and downstream production, low quality of human resources of farmers, and poor rural transportation infrastructure, resulting in low income and welfare of rural farmers in North Buton Regency. The results show the village fund budget allocation has increased the farm production in Gunung Sari Village to 124.85 percent, Lahumoko Village 105.00 percent, and Karya Mulia Village to 154.11 percent. As a result of increased agricultural production, the income per capita of the population of Gunung Sari Village increased by 113.56 percent, Lahumoko Jaya Village increased by 110.79 percent, and Karya Mulia Village increased by 112.46 percent. The partial test results show that short-term investment (Ii) has a significant effect on every increase of IDR. 1.000 short-term investment to increase farmer’s income IDR. 79.16 with a probability of 70%. Each increase of IDR. 1.000 long-term investment to increase farmer’s income IDR. 42.42 with a probability of 80%. Every addition of one skilled worker increases the farmer’s income by IDR. 147 with a probability of 90%. Analysis (R2 test = 0.94) the real effect of increasing population income is 94 percent, the effect of other factors that are not explained in the 6% model. The results of the F test show that F count (17.29) is greater than F table (FO, 01; 3.11) of 6.22, indicating that the village fund budget allocation for short-term investment (Ii), long-term investment (1j), and expert simultaneously influences the improvement of farmer welfare. The increase in the welfare of farmers in Gunung Sari Village, Lahumoko Jaya Village, and Karya Mulia Village, apart from the relatively large increase in farmer’s income is also due to the decreasing dependency ratio for each family from 4.5 to 5.8 in 2015 decreasing to 3.7 - 5.0 in 2019. This research recommends that the budget allocation for village funds in Gunung Sari Village, Lahumoko Jaya Village, and Karya Mulia Village should be continued with shortterm investments, long-term investments, and investment in human resources for farmers because they have proven to increase farmer’s income and per capita income of the population.