The Effect of Agro Industry, Infrastructure, and Natural Resources to Farmers Income in Shallots Agribusiness Based Agropolitan Area at Banggai Regency of Central Sulawesi Province

Abstract

The research aims to find out the effect of agro industry, natural resources and infrastructure directly and indirectly to the farmers income in shallots agribusiness based agropolitan area. Data analysis method used was descriptive statistics analysis and path analysis. The research results reveal that the direct effect of natural resources to the farmer’s income with path analysis value is 0.604, coefficient regression 0.909. If the natural resources owned by the adjustability of good land, has a carrying capacity of land and maintained continuously and sustainably in shallots agribusiness based agropolitan area of Banggai Regency with other variables considered fixed, then, natural resources directly affects of 0.909 to the increasing of farmer’s income.  The direct effect of infrastructure on the increasing of farmer’s income in the area of shallots agribusiness based agropolitan is 1.420, coefficient regression 2.101. The availability of infrastructure facilities on the agriculture field such as agriculture machinery equipment, farm road, market availability, transportation, people harbor, airport and telecommunication in the area of agropolitan of Banggai Regency greatly affect with 2.101 to the increasing of shallots farmer’s income. The direct effect of agro industry to the farmer’s income in agropolitan area of Banggai Regency with path analysis value is 2.771, coefficient regression of 3.853. The increasing of agro industry productivity using tools and machines in the production process, increasing the marketing of agricultural products, increasing the quality of agro-products, increasing employment by 3.853 highly affect to the farmer’s income. The indirect effect of natural resources on the agro industry development in increasing the income is mediation coefficient value (the indirect effect) of 3.675. It explains that the indirect effect of natural resources to the farmer’s income and entrepreneurs through agro industry development are significant. The indirect effect of natural resources to infrastructure in increasing farmers' income is mediation coefficient value (the indirect effect) of 3.675. It is clear that the indirect effect of natural resources to the income of farmers and entrepreneurs through infrastructure improvement are significant.

Keywords: Agro industry, Infrastructure, Natural Resources, Income, Shallots Agribusiness