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The Effect of Capital on the Income of Lowland Rice Farmers in Luwu Regency

2024-05-27
Published
29-40
Pages
OPEN
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HS
Hasrianti Sumin
Management Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar
WR
Wa Ode Rayyani
Management Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar
Abstract

Purpose: This study aims to analyze the effect of business capital on the income of lowland rice farmers in Luwu Regency and examine the significant relationship between business capital and farmers’ income.

Research Methodology: This study uses a quantitative approach with a causal associative research design. The population consists of 150 lowland rice farmers who are members of farmer groups in Luwu Regency. A sample of 50 respondents was selected using Proportional Stratified Random Sampling. Data were collected through questionnaires and farm financial documentation. Data analysis was performed using descriptive analysis, classical assumption tests, and simple linear regression analysis with SPSS 26.

Results: The findings show that the average business capital invested by farmers is IDR 8,120,000 per planting season, with an average income of IDR 13,650,000. Business capital has a positive and significant effect on farmers’ income, indicating that higher capital utilization contributes to increased income levels.

Conclusions: Business capital plays an important role in improving the income of lowland rice farmers in Luwu Regency. Greater capital availability enables farmers to optimize production activities and achieve higher income.

Limitations: This study only focuses on business capital and does not include other factors affecting farmers’ income. The research area is also limited to several districts in Luwu Regency.

Contribution: This study contributes to agricultural economic literature by providing empirical evidence regarding the role of capital in production activities. The findings provide recommendations for improving farmers’ access to capital through government programs and financial institutions to support agricultural productivity and welfare.

Business Capital Farmer Income Lowland Rice Farming Quantitative Approach Simple Linear Regression
How to Cite
Sumin, H., & Rayyani, W. O. . (2024). The Effect of Capital on the Income of Lowland Rice Farmers in Luwu Regency. Jurnal Teknika Dan Informatika, 4(1), 29-40. https://doi.org/10.52909/pyja7c80
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How to Cite

Sumin, H., & Rayyani, W. O. . (2024). The Effect of Capital on the Income of Lowland Rice Farmers in Luwu Regency. Jurnal Teknika Dan Informatika, 4(1), 29-40. https://doi.org/10.52909/pyja7c80
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