An analysis of farm household income in West Java, Indonesia : a study of two villages from the rural dynamic study

Abstract

This study is an investigation of the structure of farmers' income in two villages in Java, Indonesia. At the same time an assessment was made of the effect on these farmers' incomes of the government sponsored rice BIMAS programme. Possibilities of increasing farm income were considered given the existing levels of technology, prices and resource available. The data used were from two of six sample villages (a base-line data survey) collected in February 1977 by the Rural Dynamics Study, Agro Economic Survey in the Cimanuk River Basin. The results indicate that on average people in the two sample villages lived above the poverty line, if this is taken as 240 kg milled rice equivalent per capita per year. The income distribution of the sample was less uneven than income distribution in Java because of the contribution of off-farm income. It was also found that low income farmers obtained less benefit from government assistance than high income farmers. With respect to resource use allocation, the results of the analysis have to be treated with caution because of the inadequacy of the data. It was observed that the government programme to assist all farmers should be directed to non-rice crop production as well as to rice production. Because of conceptual problems, data limitations and statistical problems, a firm statement on policy conclusions was not attempted and further study was recommended. Show more