Large farmers can take advantage of the increased price to improve their production and income

Oct 13, 2025 by thesweetdesigns.com 148 views

Impact of Increasing Rice Prices on Farmer Welfare Levels on Several Land Area Strata (Case Study: Rantang City Village, Hamparan Perak District, Deli Serdang Regency)

Introduction

Indonesia is renowned as an agrarian country, where the agricultural sector plays a vital role in national development. This sector not only provides food for the community but also contributes to the country's foreign exchange and creates jobs. Considering the large population that still relies on the agricultural sector, it is crucial to continue improving its performance, especially in ensuring the availability of quality food.

Food is a basic human need that must always be guaranteed. Food availability, including rice, affects not only the intake of essential nutrients but also has implications for the quality of life of the community as a whole. In today's world, the need for adequate food, quality, and equity is increasingly urgent to be met, making food adequacy a strategic factor in the nation's resilience.

The Impact of Increased Rice Prices on Farmers

One aspect that can significantly affect the welfare of farmers is the fluctuation of rice prices. When the price of rice increases, the impact may not be the same for all farmers, especially those with different land areas. In a case study in the village of Rantang City, Hamparan Perak District, Deli Serdang Regency, we can see how farmers respond to changes in rice prices based on the stratification of their land area.

For farmers with extensive land, an increase in rice prices tends to provide greater benefits. They are able to produce more rice, so they can sell it at a higher price. This advantage can be used to increase investment in agriculture, improve infrastructure, or even improve the welfare of their family. Large farmers can take advantage of the increased price to improve their production and income.

Conversely, farmers with smaller land may not feel the same positive impact. They are often trapped in a limited production cycle and are less able to compete with large farmers. Although the price of rice rises, their limited amount of production causes their income to not experience a significant increase. This causes injustice and economic inequality among farmers. Small farmers are often left behind in the face of increasing rice prices.

Analysis of Farmers' Welfare

From the point of view of welfare, an increase in rice prices can be seen as a double-edged sword. On the one hand, an increase in rice prices can increase the income of productive farmers and invest in agriculture. But on the other hand, small farmers who cannot increase their crops may continue to face severe challenges. This price increase is often not balanced with increased productivity, and without the support of the government in the form of counseling, access to technology, or financing, small farmers will be increasingly marginalized.

This condition raises important questions: What are the strategies that must be applied to ensure that all farmers, regardless of land area, can enjoy the benefits of increasing rice prices? One potential solution is to increase access to small farmers to agricultural technology and provide training to increase their productivity. This is expected to reduce the gap between large and small farmers, and improve overall welfare. Investing in agricultural technology and training can help bridge the gap between large and small farmers.

Strategies for Improving Farmer Welfare

To improve the welfare of farmers, especially small farmers, several strategies can be implemented. Firstly, the government can provide access to agricultural technology and training to increase productivity. Secondly, the government can provide financing and counseling to help small farmers improve their production and income. Finally, the government can implement policies that promote fair competition between large and small farmers.

Closing

In conclusion, the impact of increasing the price of rice on the welfare of farmers in Rantang City Village, Hamparan Perak District, Deli Serdang Regency shows that the land area factor plays a significant role. In the context of sustainable agricultural development, it is essential to pay more attention to small farmers so that they can contribute optimally in the provision of national food and, at the same time, improve their quality of life. With the right approach, it is hoped that all the strata of farmers can feel the same benefits from increasing rice prices and contribute to national food security.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should provide access to agricultural technology and training to increase productivity among small farmers.
The government should provide financing and counseling to help small farmers improve their production and income.
The government should implement policies that promote fair competition between large and small farmers.
The government should conduct further research on the impact of increasing rice prices on farmer welfare and develop strategies to address the challenges faced by small farmers.

Limitations of the Study

This study has several limitations. Firstly, the study only focuses on the impact of increasing rice prices on farmer welfare in Rantang City Village, Hamparan Perak District, Deli Serdang Regency. Secondly, the study only considers the land area factor as a variable. Finally, the study does not consider other factors that may affect farmer welfare, such as climate change and market fluctuations.

Future Research Directions

Future research should focus on the following areas:

Conducting a nationwide study on the impact of increasing rice prices on farmer welfare.
Considering other factors that may affect farmer welfare, such as climate change and market fluctuations.
Developing strategies to address the challenges faced by small farmers.
Evaluating the effectiveness of policies and programs implemented to improve farmer welfare.

Conclusion

In conclusion, this study highlights the importance of considering the land area factor in the impact of increasing rice prices on farmer welfare. The study shows that small farmers are often left behind in the face of increasing rice prices, and that investing in agricultural technology and training can help bridge the gap between large and small farmers. The study recommends that the government provide access to agricultural technology and training, financing and counseling, and implement policies that promote fair competition between large and small farmers.
Frequently Asked Questions (FAQs) on the Impact of Increasing Rice Prices on Farmer Welfare

Introduction

The impact of increasing rice prices on farmer welfare is a complex issue that has been studied extensively. However, there are still many questions that remain unanswered. In this article, we will address some of the most frequently asked questions (FAQs) on this topic.

Q1: What is the impact of increasing rice prices on farmer welfare?

A1: The impact of increasing rice prices on farmer welfare is a double-edged sword. On the one hand, an increase in rice prices can increase the income of productive farmers and invest in agriculture. On the other hand, small farmers who cannot increase their crops may continue to face severe challenges.

Q2: Why do small farmers struggle to benefit from increasing rice prices?

A2: Small farmers struggle to benefit from increasing rice prices because they often have limited land and resources. They are also less able to compete with large farmers, who have more resources and can produce more rice.

Q3: What can be done to help small farmers benefit from increasing rice prices?

A3: There are several things that can be done to help small farmers benefit from increasing rice prices. These include providing access to agricultural technology and training, financing and counseling, and implementing policies that promote fair competition between large and small farmers.

Q4: How can governments support small farmers?

A4: Governments can support small farmers by providing access to agricultural technology and training, financing and counseling, and implementing policies that promote fair competition between large and small farmers. Governments can also provide subsidies and other forms of support to help small farmers improve their production and income.

Q5: What is the role of agricultural technology in improving farmer welfare?

A5: Agricultural technology plays a crucial role in improving farmer welfare. It can help farmers increase their productivity and income, and improve their access to markets. However, agricultural technology can also exacerbate existing inequalities between large and small farmers.

Q6: How can farmers access agricultural technology?

A6: Farmers can access agricultural technology through a variety of channels, including government programs, private companies, and non-governmental organizations (NGOs). Governments can also provide subsidies and other forms of support to help farmers access agricultural technology.

Q7: What is the impact of climate change on farmer welfare?

A7: Climate change has a significant impact on farmer welfare. It can lead to changes in temperature and precipitation patterns, which can affect crop yields and quality. Climate change can also lead to more frequent and severe weather events, which can damage crops and infrastructure.

Q8: How can farmers adapt to climate change?

A8: Farmers can adapt to climate change by using a variety of strategies, including changing their crop selection, using drought-tolerant crops, and implementing conservation agriculture practices. Governments can also provide support to help farmers adapt to climate change.

Q9: What is the role of markets in improving farmer welfare?

A9: Markets play a crucial role in improving farmer welfare. They provide farmers with access to buyers and prices, which can help them increase their income and improve their livelihoods. However, markets can also exacerbate existing inequalities between large and small farmers.

Q10: How can governments regulate markets to improve farmer welfare?

A10: Governments can regulate markets to improve farmer welfare by implementing policies that promote fair competition, provide support to small farmers, and protect farmers from market fluctuations. Governments can also establish market information systems to help farmers access market prices and information.

Conclusion

In conclusion, the impact of increasing rice prices on farmer welfare is a complex issue that requires a multifaceted approach. Governments, private companies, and NGOs can all play a role in improving farmer welfare by providing access to agricultural technology, financing and counseling, and implementing policies that promote fair competition between large and small farmers.