Analysis of factors influencing palm oil farmers' income and strategies for increasing income

Abstract

This study aims to analyze the influence of production factors including land area, capital, labor, market price, and farming duration on the income of oil palm farmers in the region. In addition, this study also aims to analyze strategies for increasing oil palm production that can have an impact on increasing the income of oil palm farmers in Batin XXIV Subdistrict, Batang Hari Regency. The analytical tool used is multiple linear regression. SWOT analysis and Analytical Hierarchy Process (AHP). The results of multiple linear regression analysis show that simultaneously the variables of land area, capital, labor, market price, and farming duration have a significant effect on farmers' income, with a coefficient of determination (R²) of 82.9%, indicating that income variation can be explained by these variables. Partially, the variables that have a positive and significant effect on income are capital, labor, and farming duration, whereas land area and market price have no significant effect. In addition, the strategy to increase palm oil production based on the SWOT analysis is in quadrant I (progressive strategy) with the priority of the SO strategy, namely utilizing internal strengths to seize external opportunities. The AHP analysis results indicate that priority strategies include utilizing high farming experience (0.3290), utilizing relatively stable market prices (0.2525), optimizing family labor in government programs (0.2109), and developing farmers' capital capacity (0.2076), which are expected to increase oil palm plantation productivity as well as farmer income and welfareuse.