Impact of Economic Factors Changes on Paddy Farmers Household Income in Lebak Swampland (Case of Swampland in HSU District, South Kalimantan Province-Indonesia)

Abstract

Paddy farmer household at Lebak swampland are poor because of low income. Efforts to increase household paddy farmer’s income in Lebak swampland are always associated with the economic factor as price; subsidies and expansion area (extensification).  This study aims to analyze the impact of economic factors change on farm household incomes in the Lebak swampland. Data is analyzed by using agricultural economic household models, with simultaneous equations. The results showed that the increase in input prices of paddy (seeds, fertilizers, pesticides and labor outside the family) would decrease farmer household income. The increased of input price followed by an increased in paddy output price in same proportion were able to increase farm households income. Seed subsidies are also able to increase the household income. In contrast; paddy area expansion or extensification would decrease household income. Therefore, the expansion program option at lebak swampland is not priority choice.

Keywords: Lebak swamplands; farmer income; extensification; inputs price, price of output.