Farmer Behavior in Creating Value-added Agroindustry of Porang Tuber in Dagangan Sub-district Madiun Regency

Abstract

The limitations possessed by porang farmers in Dagangan Sub-district, Madiun Regency have made porang farmers can only rely on primary commodity production, resulting in relatively small benefits. This study aims to identify the factors that influence porang farmers' behavior in creating value-added and to examine the amount of value-added in the production of porang chips. This study employed a descriptive method with a quantitative approach. Purposive was used as a non-random sampling technique. This study employed a descriptive method with a quantitative approach. Purposive was used as a non-random sampling technique. The first problem formulation used structural equation modeling (SEM) to discover the factors that influence farmers' behavior in creating value-added. Meanwhile, the Hayami method was used to calculate the amount of value-added created, and finally, the results of interviews were studied to assess farmers’ understanding. The results of the SEM test on 32 respondents indicate that the predisposing factor had no significant influence on farmers' behavior in creating value-added. However, the other two factors, namely enabling factors and reinforcing factors, had a significant effect on farmers' behavior in creating value-added. The value-added analysis utilizing the Hayami method yielded a conversion of 1.6 with a profit of 52.67% from the production of porang chips. Farmers' understanding of value-added is quite good although it could be improved further with skills training as well as motivational encouragement in the form of facilities and infrastructure.