Increasing of cocoa farmers household income with two stage least squares method

Abstract

This research aimed to analyze the relationship of production decisions, allocation of labor and consumption decisions the cocoa farming with side-grafting technology in order to increase household income of farmers. The method used was survey where the number of samples were 98 household heads, and the sample was determined by simple random sampling. The results showed that the combination simulation by increasing the usage of fertilizer, following agricultural extension and sanitation by 25% as production decisions had positive impacts in increasing household income of cocoa farmers (18.09%), labor absorption (7.77%) and expenses for consumption (15.47%).