Analysis of the income and household welfare of organic and non-organic rice farmers in the Sambirejo Sub-Regency of Sragen Regency, Indonesia

Abstract

Climate change can be caused by various factors, including carbon emissions. The adoption of an organic farming system on a large scale can reduce the use of chemicals in factory production. Therefore, in the long term, it can reduce the operation of chemical factories and reduce carbon emissions. However, the organic system cannot be applied extensively to Indonesian rice farmers. The complexity of the system, certification, the initial decrease in production, and higher cost allocation leads farmers to think that the organic system is not making an impact on their income and welfare. This study aims to determine the farming income, household income, and household welfare of organic and non-organic rice farmers in the Sambirejo sub-district. It uses a descriptive method, and the respondents were determined by the proportional random sampling method. The results show that the organic rice farming income and household income are higher than their non-organic equivalents. There is a very small difference in the price of organic and non-organic rice of only IDR 855.00/kg, so it is understandable that many non-organic farmers are reluctant to switch to the organic system. Based on the comparative test of the Rice Farmer Exchange Rate, the welfare of organic rice farmers is higher than non-organic ones, whereas, based on Food Expenditure Share, the welfare of organic rice farmers is not significantly different to their non-organic compatriots.