Contribution of village cooperation unit in improving farmers incomes

Abstract

One of the government and private efforts to improve people's welfare particularly to improve farmer's income is to activate the Village Cooperation Unit (KUD). The objective of research was to know the efficiency level of farming organized by farmers together with cooperative. Theoretically some social economic variables have been known influences the rate of farmer's income, therefore three social variables, such us the level of cooperation services, members participation and friendship among farmers with cooperation were studied. List of questions divided into forty family's leader members of KUD which become samples. Analysis models were used production function of Cob-Douglass and Output Input Ratio models. It was concluded that level of participation and friendship partially were significantly to the income's rate meanwhile variable of cooperation services level were not significant. Simultaneously, three factors gave very significant contribution, where R-square was 0.97 so that very significant. It's also concluded that the biggest contribution given by the friendship level. Efficiency level or farming efforts of the farmers is very well and feasible with the average of OIR rate 19.23. This research recommended that this effort could be improved from friendship process among institution since the contribution was significantly improving the farmer's income.