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Determinants of Coffee Farmers’ Income: The Role of Land Area and Production Volume in Pargarutan Jae Village Lubis, Naimatul; Nefri, John; Harahap, Heri Faisal; Amir, Reza Mardiyah
Andalasian International Journal of Agriculture and Natural Sciences (AIJANS) Vol. 6 No. 1 (2025)
Publisher : Lembaga Penelitian dan Pengabdian, Universitas Andalas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.25077/aijans.v6.i1.16-25.2025

Abstract

This study aims to analyze the effect of production land area on the income of coffee farmers in Pargarutan Jae Village, South Tapanuli Selatan. The method used is a quantitative approach involving 109 coffee farmer respondents selected using the accidental sampling method. Data were collected through questionnaires, observations, and documentation, then analyzed using Structural Equation Modeling Partial Least Square (SEM PLS). The results show that the production land area has a significant influence on increasing coffee production, which in turn positively impacts farmers’ income. The majority of farmers have a last education level of vocational high school/general senior high school and are in productive age, with most incomes at the lower-middle level. The validity and reliability of the research instruments have been well tested, with loading factor and AVE values meeting the criteria for convergent and discriminant validity. These findings indicate that managing and increasing the production land area is a key factor in improving the welfare of coffee farmers in the area.
The Role of Land Area as A Mediator in The Relationship between Palm Oil Price and Productivity on Farmers’ Income in Bangko Pusako Rokan Hilir Afifah, Tsamara; Harahap, Heri Faisal; Silfia, Silfia; Amir, Reza Mardiyah
Andalasian International Journal of Agriculture and Natural Sciences (AIJANS) Vol. 6 No. 1 (2025)
Publisher : Lembaga Penelitian dan Pengabdian, Universitas Andalas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.25077/aijans.v6.i1.26-36.2025

Abstract

This study aims to analyze the mediation effect of land area on the relationship between price and productivity on oil palm farmers’ income in Bangko Pusako District, Rokan Hilir Regency. A quantitative approach using Structural Equation Modeling-Partial Least Squares (SEM-PLS) method was employed to analyze data from 155 oil palm farmers selected through accidental sampling technique. The results show that palm oil prices and productivity do not have significant direct effects on farmers’ income. However, land area proves to have a significant direct effect on farmers’ income (T-statistic = 2.208, p-value = 0.028). Mediation analysis reveals that palm oil prices significantly affect income through land area mediation (T-statistic = 2.112, p-value = 0.035), while productivity does not significantly affect income through land area mediation (T-statistic = 1.611, p-value = 0.108). These findings confirm the important role of economies of scale in oil palm farming, where farmers with large land areas have comparative advantages in utilizing market price fluctuations. This research provides theoretical contributions to the development of farmer income analysis models and practical inputs for formulating more effective and targeted oil palm farmer empowerment policies.