The impact of incentives on the decision to transfer agricultural land functions to non-agricultural uses

Abstract

The influence of incentives on landowner’s decision-making regarding land-use change is an intriguing consideration when developing sustainable agricultural land policies. Owners of agricultural land in rural areas with varying characteristics and varying agricultural yields each year have varying views on changing or maintaining their land. The purpose of this study was to determine the effect of incentives on people’s attitudes toward maintaining or selling land (land-use change from agricultural land to non-agricultural land). This study employed a descriptive analysis to calculate the impact of incentives from the government on the decision to change or keep the land. The responses of 500 respondents were categorized as follows: 20-46.67 in favor of land change, 46.67-73.33 neutral, and 73.4-100 in favor of maintaining land. The analysis revealed that additional factors influence the decision to sell or maintain the land. However, some villages seek to preserve land through government incentives.

Analyzing Farmers’ Engagement with Sustainable Agricultural Policies: Insights from Indonesia’s LP2B Initiatives

“…This law aims to reduce the high conversion rate of paddy fields and preserve their ecological function [21]. Policy plays a crucial role in land protection, particularly in rural areas, and serves to identify and designate locations for agricultural purposes [22]. Aligned with the Central Government's support for National Food Security, every region, whether regency or city, is required to maintain and preserve productive agricultural land [23].…”