<![CDATA[The Farmer Terms of Trade (FTT) is used to describe changes in farmers’ purchasing power, but its capacity as a welfare indicator remains limited because it is constructed from a comparison between the price indices received and paid by farmers. This study examines the relevance and limitations of FTT as an indicator of farmer welfare from the perspective of maqāṣid al-sharī‘ah. It employs qualitative library research, using directed content analysis and conceptual comparison to examine official documents and scholarly literature. The preservation of religion, life, intellect, lineage, and wealth serves as the analytical framework. The findings show that the relationship between FTT and the preservation of wealth is direct but limited because its components reflect changes in the prices of agricultural products, production inputs, and capital goods. Its relationships with the preservation of life, intellect, and lineage are indirect because the household consumption component only records price changes and does not measure the actual fulfilment of basic needs, access to education, or family sustainability. The preservation of religion is not represented because FTT does not provide information on religious life or the conformity of economic activities with Sharia principles. Therefore, FTT remains relevant as a partial indicator of farmers’ purchasing power but should be considered alongside multidimensional indicators when assessing farmer welfare comprehensively.]]>
