The role of price, land, labor, and capital on Kepok Banana farmer's income in Sikka Regency: the mediating role of production

Henderikus Darwin Beja, Budiyanto and Djawoto
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Henderikus Darwin Beja: Doctoral Student of Science in Management, Indonesia School of Economics (STIESIA)
Budiyanto: Indonesia School of Economics (STIESIA)
Djawoto: Indonesia School of Economics (STIESIA)

International Journal of Research in Business and Social Science (2147-4478), 2025, vol. 14, issue 4, 347-360

Abstract: Despite the national increase in banana production, Kepok banana farmers in Sikka Regency have experienced a sharp decline in both production and income. This study aims to analyze the factors affecting the income of Kepok banana farmers in Sikka Regency by examining the role of production as a mediating variable between key determinants—price, land area, labor, and capital—and income levels. The study employs a quantitative research approach using survey methods to collect primary data from Kepok banana farmers in Sikka Regency. The sampling technique applied is simple random sampling, ensuring proportional representation from 21 sub-districts. Out of a total population of 2,123 farmers, a final sample of 354 farmers was randomly selected. The collected data was analyzed using Partial Least Squares (PLS) through SmartPLS to examine the relationships. The study found that price, land area, labor, and capital all have a positive and significant impact on the production of Kepok bananas in Sikka Regency. Production itself plays a crucial role in influencing farmers' income, alongside price, land area, labor, and capital, all of which have a direct positive and significant effect on income. Production mediates the relationship between price, labor, and capital with farmers' income, indicating that these factors contribute to higher production, which in turn increases income. However, production does not mediate the effect of land area on income, suggesting that while land expansion increases production, its direct impact on income may be influenced by other factors beyond production volume alone. Key Words:Price, Land, Labor, Capital, Production, Farmer's Income

Date: 2025
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