Citation:

Muhammad Irfan, Anas Tain, Adi Sutanto. "The Effectiveness of Farmer Group Institutions in Increasing the Income of Rice Farmers in Sananrejo Village, Malang District" International Research Journal of Economics and Management Studies, Vol. 4, No. 8, pp. 221-227, 2025. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V4I8P123

Abstract:

This study aims to analyze the institutional activities of farmer groups in increasing the income of rice farmers in Sananrejo Village, Turen District, Malang Regency. The research method employed is a quantitative approach, utilising descriptive analysis through scoring using the Likert scale and farm analysis, which includes calculations of costs, receipts, income, and business feasibility. The results of the study indicate that the Sidomukti farmer group institution has been effective in carrying out its organizational functions, providing tangible benefits in the form of production facilities, access to information, and technical support for members. The level of institutional effectiveness is reflected in the high level of farmer satisfaction with the role of groups in supporting cultivation activities. However, institutional effectiveness does not guarantee equitable income growth, as individual circumstances and external factors continue to influence the results obtained. Cost structure analysis shows that rice farming in the Sidomukti farmer group is efficient, with variable costs of IDR 52,514,000 and fixed costs of IDR 89,006,800, with fertilizer and seeds being the largest components. The farming business generates gross income of IDR 798,810,000 and net income of IDR 657,149,200 with a profit margin of 82.3%. The R/C Ratio of 5.64 confirms that rice farming is very feasible and profitable. The average productivity of 6,445 kg/ha is also higher than the national average (5.2–5.5 tons/ha). These findings confirm that the role of farmer group institutions is very strategic in increasing farmer productivity and income. However, efforts are still needed to distribute the benefits evenly among all members.

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Keywords:

Farmer Group Institutions, Effectiveness, Rice Farming, Income.