Technological Innovation and Business Diversification: Sustainability Livelihoods Improvement Scenario of Rice Farmer Household in Sub-Optimal Land

Abstract

The increased role of the sub-optimal land to support food security continue to be encouraged in Indonesia, given the more limited expansion for potential land. But until recently, development of sub-optimal land becomes not an easy thing. Ecological and technical barriers became the main issue. A series of these issues resulted in a high number of underemproleymeny and poverty in agriculture region. Technological inovation of agriculture and the business diversification can be seen be the solution to those issues. This research aims to analyze the impact of the technological innovation and business diversification on underemployment, working time, household income and also sustainable livelihoods of farmers on the sub-optimal land. The research was carried out in Pemulutan District, Ogan Ilir Regency, South Sumatra Province, Indonesia. The objects of research are farmers which adopter and non adopter technological innovation, and also work outside of paddy farming (business diversification). The research method is the survey. Method of sampling is stratified random sampling. Data obtained in the field analyses using descriptive statistics and inferesia. The results showed there are positive impact of technological innovation on the allocation of working time farmer households, the numbers underemployment, household income and livelihood sustainability. Determinant factors for farmers in applying technology and business diversification are paddy farming income, offfarm income, and age. The use of technology and business diversification proves to be one of the positive scenarios for sustainable livelihood of farmers in sub-optimal land.

Finding Policies of Disguised Unemployment Arrangement: Through Various Technological Innovation of Agriculture and Income Diversification for Tidal Rice Farmer

“…This is what is called Income Diversification. This is in line with argument made by [2], [3] that income diversification pertains to the economic rationality of farmer households based on social rationality that occurs. Research conducted by [8], [9] on Income Diversification was carried out in a more detailed.…”

“…The same is true with the tidal agriculture in which the agricultural technology innovation is a prerequisite [1], [9], [19]. However, the application of technological innovation gives rise to issues concerning employment as it decreases the need for labor and creates disguised unemployment in rural areas [2], [3], [23]. The use of technological innovation engenders longer span of unemployment, which contributes to the lower income farmers derive from the agricultural sector [7], [17].…”

“…Secondly, most of technology develops in Indonesia have not been able to prove their full commitment to develop economically competitive and technically reliable technology. This leads to the lower demand of human labor and rising unemployment particularly in the agricultural sector due to the application of technological innovation [1], [3].…”

The Estimation of Economic Appearance and Profitability Function of Drip Irrigation in Tidal Lands (a Case of Chili Farming)

“…Of course, there is great optimism regarding the success of tidal lands for food crop. Optimization of tidal lands to support the increasing of national food production program can be carried out because various technological innovations are available such as: (1) water and soil management technologies, including microwater management, lands management, amelioration and fertilization; (2) new superior varieties that are more adaptive and productive; and (3) agricultural tools and machinery suitable for the tidal lands. However, the development and optimization of tidal lands also faces non-technical barriers, including capital, labor availability, and technology mastery by farmers [10] [22].…”

“…However, the development and optimization of tidal lands also faces non-technical barriers, including capital, labor availability, and technology mastery by farmers [10] [22]. [1] and [2] detailly stated that the use of technology has negative impact on an increasing unemployment by 3.87%, and a decrease in work time allocation by 10.91%, and positive impact on increasing profit and household productivity -respectively 362% and 388%.…”