Analysis of factors affecting farmer exchange rate in North Sumatera Province

Abstract

Increasing the overall welfare of the population means increasing the welfare of the rural population by paying attention to the development in the agricultural sector. In addition to economic growth data, to determine the success of the progress, data to measure the level of farmer welfare is also needed. One indicator that shows the welfare of farmers and rural economic conditions is the Farmer Exchange Rate (NTP). The research objective is to analyse the effect of inflation, interest rates, labour, GDP, and previous farmer exchange rates on the exchange rate of farmers in North Sumatra Province. The data used is secondary data from 1989-2018. The analysis model used is autoregressive. The results show that partially inflation, labour, and the exchange rate of farmers in the past have a beneficial and significant impact on the exchange rate of farmers. While, simultaneously inflation, interest rates, labour, GDP, and past exchange rates together with the important impact on value. The exchange of farmers in North Sumatera Province.