1Yunita Dwi Ratnasari,2Anas Tain,3Damat
1,2,3 Agribusiness Department, University of Muhammadiyah Malang, Indonesia
DOI : https://doi.org/10.47191/ijmra/v8-i02-03Google Scholar Download Pdf
ABSTRACT:
The Village Fund program in Indonesia is designed to improve rural economic development, including agricultural productivity. However, its role in reducing the cost of rice agricultural production is still less explored, especially in the local context. This study aims to evaluate the effectiveness of village funds in reducing the production cost of rice farming in Bicak Village, Mojokerto, Indonesia. Using a mixed-methods approach that combines survey data, in-depth interviews with 68 farmers, and financial analysis, the study provides a comprehensive assessment. The results show that the construction of farming roads and the construction of irrigation canals using the budget from the Village Fund have significantly increased the net income of farmers by 26%, several components of farming costs have decreased, namely labor, land cultivation and the use of agricultural equipment (water pumps), another impact is that land rental costs have increased because access to agricultural land is getting easier and smoother. It was concluded that the Village Fund can effectively support cost-effective rice farming, and the right allocation of resources is very important. Future programs should prioritize transparent fund management and training for farmers. This study provides new insights into the intersection between rural development policies and agricultural cost management.
KEYWORDS:Village Funds, rice farming, production costs, rural development, agricultural policy
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