Household Economic Decisions of Corn Farmers at West Timor, Indonesia

Abstract

The study aimed to identify factors that influence household economic decisions of corn farmers related to the allocation of time, production activities, corn consumption and policy simulation which can increase household economic of corn farmer. Research was conducted at Tesbatan and Camplong II Village, West Timor, Indonesia. Data were analysed using a system of simultaneous equations. Parameter estimation used Two Stage Least Square (2SLS) and simulation analysis was used for getting alternative policy. The result showed that household economic decisions of corn farmer were affected by the level of wages and farming area. Corn production was influenced by the farming area, the use of labor, urea fertilizer and seeds. Consumption of corn was affected by the price of corn, household income, corn production and the number of household members. Then, Consumption of purchased corn was influenced by household income, corn production and the number of household members. The policy to increase the price of corn was very effective increasing household income but reduce the consumption of corn. Furthermore, the policy of expansion of the scale of farming could increase household income and consumption of corn.

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“…Non-food expenditure showed no significant influence on the use of urea and SP-36 fertilizer, but it has positive parameter estimator that indicated there was a tendency that households would reduce the use of fertilizer along with the increase of non-food expenditure. The results of this study were similar to Leki et al (2016) that non-food expenditures to have not significant influence over the use of fertilizer for maize in Timor. This was one the subsistence household indicators that always gave high priority on the effort to meet food needs from other interests.…”

Several Factors That Influence Household Economic Decisions of Rice Farmers in Indonesia

“…The results of study conducted by Nuhfil and Yonekure found that household consumption expenditure significantly influenced the decision-making of vegetable farmers household. However, the result of study conducted by Leki et al (2016) showed that non-food expenditure to have not significant influence over the use of fertilizer for maize plant.…”

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