Agricultural land availability and farmer’s income in Java Island, Indonesia, 1990–2018

Abstract

Java, an island in Indonesia, plays an essential role as the centre of food crop production. However, over the last few decades, the conversion of agricultural land on this island has increased. The pressure on the availability of agricultural land has increased, and the problems regarding farmers’ income have not been appropriately resolved. This research was conducted to determine the relationship between the availability of agricultural land and farmers’ income on Java Island using structural equations. The panel data used in this research consist of annual time-series data from 1990– 2018 and cross-section data of all provinces in Java. Furthermore, the data were analysed using a three-stage least-squares model. The results prove that agricultural land availability and the level of farmers’ income simultaneously positively affect each other. Therefore, to maintain the performance of Java Island as the primary producer of food crops in Indonesia, the availability of agricultural land and the level of farmers’ income are the main focus areas for improvement.