Food crop diversification and rice self-sufficiency: The impact on Indonesian farmers' incomes



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The declining roles of the agricultural sector in the Indonesian economy has been observed over recent years. The remarkable achievement in the food crop sub-sector, especially in rice production, in part was found to be the key for economic stabilization in the country. This success, however, was not necessarily followed by a high degree of the growth rate in incomes earned by rice producers. Statistics show that the growth of agriculture has been outpaced by the growth of the other sectors. As Indonesia is expected to begin the "Take-Off stage in its "Five Year Development" plan, in 1994, an evaluation of agriculture is considered important, as this sector embraces many aspects of the economy. The stabilization of the domestic supply of rice, a staple food for Indonesian, generally has been the focus of national policy. The impact of this program as well as the impact of price policies and chemical input subsidy, and also the impact of food crops diversification policy were the objectives of this study. The quadratic programming models used to solve the problems presented in the objectives have been evaluated to be appropriate. General Algebraic Modelling Systems (GAMS) provide ample opportunities to simulate the models. Overall, forty-eight models were solved using GAMS. The results obtained from the simulation have been sufficient to discuss and analyze the objectives of the study.



Rice -- Economic aspects -- Indonesia, Food crops -- Economic aspects -- Indonesia, Rice farmers -- Indonesia -- Economic conditions, Farmers -- Indonesia -- Economic conditions, Agriculture and state -- Indonesia