Changes in rural household characteristics and their implications on agricultural income in wetland rice ecosystems

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Abstract
Agricultural development has impacted changes in rural economic structure, as reflected by rural economic indicators.. The research question is how the direction of the changes is and the implications for rural household agricultural income. This paper aims to analyses household characteristics changes in the rice-based ecosystems and their implication on household agricultural income. The study used micro-panel data of the National Farmers Panel (in 2010 and 2016) from the Indonesian Centre for Agro Socio-Economic and Policy Studies. The survey was conducted in 14 villages of five rice production centers provinces in Java and Outside Java. The number of respondents is 559 households. Data was analyzed statistically descriptive by calculating the average, minimum-maximum numbers, and participation rate. Generalized Linear Models method was employed to determine the factors affecting household agricultural income. The results showed that agricultural land occupation tends to decrease. The number of older workers tends to increase. The increase of workforce older than 65 years is more significant in Java than Outside Java. The workforce level of education remains predominantly in elementary school. Although nominal total income increased significantly, real income increase sluggishly. Household agricultural income is still dominant but declining. The farmland managed, age and level of education of the household member, number of the household member, and cropping intensity affect household agricultural income significantly. To increase the household agricultural income by increasing the production capacity of farmers’ households through increasing land occupation, improving human resources skills, and facilitating innovative technology that can increase farming efficiency and productivity.

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