Impact analysis of coffee production in reducing poverty in Aceh Tengah

Abstract

The plantation is a strategic sector in poverty alleviation. In the Aceh Tengah district, coffee is one of the leading plantation commodities that can increase the pace of the regional economy. Gayo coffee has a distinctive aroma and has a high price. Although generally, the people there are active in producing coffee, there are still poor people. It is necessary to analyse the impact of coffee production in reducing poverty in farming communities in Aceh Tengah district. This study uses a probit regression analysis method to see the characteristics of coffee farmers with significantly different non-coffee farmers. It then uses a Propensity Score Matching (PMS) analysis to see the impact of coffee production in reducing poverty farming communities in Aceh Tengah district. This study indicates that the characteristics significantly differ between coffee farmers and non-coffee farmers are age, education, access to food, eating little food, and assets having a motorbike. The per capita consumption of coffee farmers is not higher than that of non-coffee farmers, but the holdings of coffee farmers are more than those of non-coffee farmers.