Identifying Factors Influencing Production and Rice Farming Income with Approach of Path Analysis

Abstract

This research analyzes direct and indirect factors that potentially affected rice quality, rice price at the farmers' level, rice production and farming income. The target population in this research were farmers who farmed on rice land area ranging from 0.5 to 2.0 ha. A multistage, stratified cluster sampling was used in this research. This research employed a survey of 300 household heads, chosen randomly. Results showed that NPK fertilizers (Nitrogen, Phosphorus, Potassium), organic fertilizers and labor had a direct effect on rice production. Rice quality had a direct effect on its price at the farmers' level, while organic fertilizers and labor directly affected rice quality. Labor had a negative correlation to rice quality, showing that technologies were very much needed to improve. Rice price at the farmers' level and production had a direct effect on the income of rice farming, while the organic fertilizers had an indirect effect. These results have the potential to help the government and agricultural professionals design effective agricultural interventions to increase rice quality, price at the farmers’ level and production so that farming income could increase.