Does the Indonesian farmer empowerment policy enhance the professional farmer? Empirical evidence based on the difference-in-difference approach

Lukman Adam, Jia Jin and Anwar Khan

Technology in Society, 2022, vol. 68, issue C

Abstract: Aging farmers tend to increase the number of retirees with declining successors in the field, which threatens food security. Accordingly, the study investigates the role of the farmer empowerment policy on agricultural production factors and paddy yield in empowering professional farmers in Indonesia. The study used the 2010 and 2016 survey data, employing difference-in-differences based on the propensity score matching (PSM-DID) method. The empirical measures demonstrated the negative effect of the farmer empowerment policy on professional farmers in farmland (0.509), input cost (0.996), and paddy yield (0.521). Agricultural production factor and paddy yield issues remain even after passing the farmer empowerment law. The region faces massive pressure on farmland conversion and input subsidy distribution. Nevertheless, the farmer empowerment law fails to solve the issues due to a lack of interest in developing the agricultural sector by the local government with authority to impose spatial planning. The study suggested modifying the farmland determination into the central government domain and fixing the issue of farmers’ distribution input subsidy.

Keywords: Aging farmer; Farmer empowerment policy; PSM-DID; Paddy yield; Input subsidy (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x22000653

DOI: 10.1016/j.techsoc.2022.101924

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