<![CDATA[Rural transformation involves comprehensive changes at the community level, including shifts from agriculture to non-agricultural sectors, infrastructure development, and socio-cultural changes toward urbanization. The organization of rural production is both a key driver and a reflection of this transformation. Kediri Regency in East Java is experiencing rural transformation, with 29 villages reclassified as urban between 2000 and 2010. While a shift to non-agricultural sectors is evident, the agricultural sector in some areas remains strong and competitive. This study analyzes rural production systems within the context of rural transformation in Kediri Regency. The analysis focuses on three villages with varying proximity to Kediri City (primary city) and Pare (secondary city), using a quantitative method and descriptive statistical analysis. Results show that rural production systems contribute significantly to sustaining agriculture during transformation. Notable progress is seen in physical assets, natural resources, and social capital—such as the use of modern tools, crop diversification, and stronger social networks. Local production systems are advancing through innovations and improved operational structures, though collective farming remains dominant. Productivity, income, and marketing opportunities have improved, along with signs of emerging production chains and better access to central markets. Villages closer to urban centers show faster adaptation due to spatial advantages and stronger assets. This study recommends that rural production systems be included in rural development planning to enhance agricultural innovation, expand partnerships, and strengthen social and economic networks in response to rural transformation.]]>
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