Wonogiri district located in Central Java is the water source of Solo River. However, the reservoir is reported to be losing its function due to rapid sedimentation caused by forest conversion and intensive farming. For sustainable resource management, assessment of development strategies incorporating alternative agro-forest systems is required. This study, as a preparation for the assessment of development strategies, was aimed to grasp regional industrial structure, using the inputoutput analysis.
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The results suggest that the changes in market prices of inputs and output significantly affect the farmers’ profits, rice supply and the use of resources in paddy cultivation. The supply elasticity of rice with respect to its own price is 0.5 and the supply elasticity of output with respect to fertilizer price is-0.05 on an average. Fertilizer demand in the country is inelastic but significant to its own price.
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- In addition, elasticities of substitution between inputs are also estimated.
- Furthermore, This study not only finding out the backward and forward linkage, but also calculates the impact of the output multiplier and multiplier effects of the food crop sector in Central Java.
- The determinant factor that greatly influences the productivity and sustainability of rice farming is farm income.
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The sustainability of farming is mainly determined by economic aspects, especially income. Models for increasing productivity and agricultural sustainability must pay attention to efforts to improve farmers’ access to credit, access to technology and access to input procurement. Efforts are needed to handle the input output price for rice so that it can increase farmers’ income. In addition, elasticities of substitution between inputs are also estimated.
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This study aims to analyze the structural model of the increase productivity and sustainability of rice farming in West Tanjung Jabung District. The data analysis used the SEM Partial Least Square structural model. The results of the analysis show that the description of internal factors, external factors of farmers and the adoption of farming technology are in the medium category. The productivity and farming sustainability factors are in a low category.
The determinant factor that greatly influences the productivity and sustainability of rice farming is farm income. Farm productivity and sustainability are significantly influenced by farmers ‘access to credit, farmers’ access to technology, and access to input procurement. The main determinant of productivity is the use of production inputs.