International Journal of Science and Applied Technology

The Impact of Rural Agribusiness Development Program (RADP) on Socio-Economic Aspects of Farmers of Tunas Berduri Farmers Groups Kualu Nenas Village District of Kampar Shorea Khaswarina Agribusiness Study Program, Faculty of Agriculture, University of Riau, Indonesia [email protected]

Abstract: In implementation of agricultural development, the majority of farmers are facing constraints in the capital. The Government through the National Budget funds provides capital in the form of Direct Community Assistance (DCA) for farmers group. The pattern of DCA has been started in 2008 and continued until year 2012 through Rural Agribusiness Development Program (RADP). The respondent is one directly involved in the RADP and a member of the farmers group who had borrowed capital in the RADP year 2009 in Kualu Nenas Village, Tambang Sub-District, Kampar District. In this research, sample data are 47 members from Tunas Berduri farmers group and the data were analyzed using descriptive statistics and computer software program (excel). Social and economic condition of the respondents increase, but this program does not affect expenses of respondents because influenced by needs and price level. Keywords: Rural Agribusiness Development, Socio-economic, Kualu Nenas village, Tunas Berduri farmers.

1. Introduction Development of the agricultural sector with rural base in fact is an attempt to create a dynamic rural human condition, mature, independent and brave face and try to overcome all the challenges of their environment. Hence, rural development means enclosing a whole aspect of economic, social and cultural community. On the goal of rural development is expected to bring a change in our whole economic ability and social behaviour culture of the community. Social activities include education, health, and social development. Whereas in economic activity is anything that relates to income and expenditure. Thus the change of the social and economic conditions can be seen from the increase in clothing, food, income and expenditure. The decisions of minister of Agriculture on 27 March 2008 set Kampar is one of the districts in Riau that get funded DCA-RADP (Rural Agribusiness Development Program). Tunas Berduri Farmers Groups has successfully fulfilled the criteria to get DCA-RADP. Tunas Berduri farmers groups is located in Kualu Nenas Village Tambang sub-district Kampar District. RADP has socialeconomy affect to all members of Tunas Berduri Farmers Groups, suitable with RADP purpose is to improve the economy and reducing poverty. This factor encourages writer to do research of The Impact of RADP towards The Socio-Economic Aspect farmer of Tunas Berduri Farmers Groups Kualu Nenas Village, Tambang Sub-District, Kampar District. Revenue that increases society welfare can be attained if the major constraints in the implementation of agricultural development, namely the ability to access capital institutions can be overcome. One of the efforts that have been undertaken is through National budget government funds initiative capital assistance in the form of Direct Assistance Community (DAC) in farmers groups. The pattern of DAC has started in 2008 through efforts of Rural Agribusiness Development Program (RADP). The farmer group recipient is not charged to return the funds to the government. They are required to return the funds to their respective of farmers groups in venture capital development in the future. Thus, it can be a solution in terms of the provision of the funds that had of complained by farmers in the village. The benefits of this research are as information on how socio-economic conditions before and after the program, as a reference for students, and the results of this research are expected to be input for the parties concerned.

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2. Related Works 2.1. Socio-economic Variable The study is examining the social aspect of the social condition of the respondents which can be seen in terms of health, education and social development. The community social activities include agricultural extension and mutual activities. Starting from the successful economic and social development of the community it would bring a degree of influence on the welfare of society. This is what welfare is becoming a very important object variable. Economists often do a measurement of the level well-being of economic variable that is seen from the level of income. Income here intended as a tool to measure with a unit of money received in units of dollars. Other economic variables are the magnitude of expenditure, shopping or consumption, either for food or non-food as well as the level of production, investment and so on. While the social variables include the level of education, health type of work, conditions of family dependents and so on.

2.2. Path of Independent-PNPM through RADP The main components of the basic pattern RADP development are 1) The existence of Farmers Groups; 2) The existence of Counselling Assistance and Supervisor of Mitra Tani; 3) Training for farmers, farmers groups, etc.; and 4) The distribution of BLM to farmers (owners or tenants), farm workers and farm households. RADP success can be accelerated, the required efforts and the implementation of an integrated strategy through: (1) development of economic activities of the people that have prioritized the poor people in rural areas by improving the quality of human resources; (2) Strengthening the capital for farmers, farm labors and farm households; and (3) mastering production technology, marketing and management of value-added results. RADP program aims to (a) reduce poverty and unemployment through the growth and development of agribusiness activities in rural areas in accordance with the potential of the area; (b) improve the ability of business agribusiness, Farmer Groups at Board, Extension and Mitra Tani Supervisor; (c) empower farmers and the rural economy to the development of agribusiness activities. (d) improve the functioning of economic institutions farmers into networks or partner financial institutions in the context of access to capital

2.3. Research on RADP Research on RADP is about the effectiveness of the refund RADP [3] with the results of the study (1) the process of implementing the distribution of venture capital RADP on farmers groups of Tunas Berduri in the village Kualu Nenas District of Mines Kampar quite smoothly and in accordance with the objectives and targets of the program, it this was shown by the response of the sample generally describes the condition (a high level of fluency). (2) The rate of return on capital in the program RADP Village Kualu Nenas District of Mines Kampar overall refunded in accordance with the obligations required under the category repayment rates right amount, the right time and the right amount, and only a small portion of venture capital is not returned according obligations on a timely repayment of the loan category. Other research that examines RADP is to analyze the distribution of household income in the village RADP beneficiary Kualu Nenas Kampar [13]. Results of the study respondents' income structure of revenues from the agricultural sector amounted to USD 124 387 319, or 90.9% of total revenue. Revenue from non-agricultural sector amounted to Rp 12.425 million or 9.1% of the total income respondents, within one month of Rp 136 812 319 and the average monthly income of Rp 5,472,493. Income respondents from agricultural enterprises is a business of fund utilization program RADP i.e. 21 respondents pineapple cultivation and agro pineapple chips 7 respondents was Rp 100 514 673 or 73.4% of total revenue. (2) based on the analysis of respondents 'income distribution, index ratio at the farmer respondents was 0.35, meaning a lower inequality in farmers' income respondents. This occurs because of differences in income fairly evenly among respondents. Of cause of differences in earnings among respondents that the wide variation in land and sources of income. Based on the analysis of the level of welfare by the Directorate of Rural Development Year 1991/1992, as much as 81% or 17 households of the respondents had been in IJSAT, Vol. 1, No. 1, December 2016

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poor condition. This shows that the purpose of the program RADP is to increase the level of welfare/beneficiaries of the funds RADP been reached.

3. Methodology This research was conducted on January until July 2015 in Kualu Nenas village Tambang subdistrict. The research involved Tunas Berduri Farmers Groups that consist of 5 (five) farmers group namely Sakinah, Nenas Sepakat, Madani, Berkat Bersama and Karya Nenas. Data sampling uses census method which are 47 members from Tunas Berduri farmers groups that 25 member is the member who have used RADP fund on the first phase in January 2009 an all member who have to borrow taken as respondents. Collecting data on this research is to collect from various sources, both through primary and secondary data collection. Data were analyzed using descriptive statistics and computer software program (excel). Data obtained from field is analyzed by using quantitative and qualitative. Data processed to know economic impact is: A. Net income received by the farmers of the pineapple farm, formula that is used according to [17] is as follows: Yrt = (Yi + Yi₂ )

B.

where: Yrt = Household Income (Rp/month) Yi = Income from Agricultural activities (Rp/month) Yi₂ = Income from non-Agricultural Saving respondent, formula that is used according to (Keynes): S=C–Y

where: S = Saving C = Consumption Y = Yield Social aspect and expenditure from respondents can be known from primary data taken from respondents by using questionnaire.

4. Results and Discussion 4.1. Respondent Identity Characteristic of respondent receipt of RADP fund in Kualu Nenas village consist of various level of education,years old, and amount of family responsibility. Table 1 shown respondent was at the age of 24-70, where the largest age group in the range of 45-55 years with the percentage of 36.67%. The lowest percentages are in the age range of 15-24 and more than 64 years 3.33%. According to Yasin [21], population with age 15-54 years pertained to the level of productive labor. Labor in the age of prolific has the potential is great in conducting business activities of economies of scale, which is a more productive workforce and play an active role both in the business activities than unproductive labor. The level of education is one of the most influential factors in terms of progress of a population in the development of socio-cultural as well as the business activities of their economies. From the table it can be noted that the respondent's education level is the lowest elementary school as 5 much as 16.67% respondents ( while the educational level of respondents, the highest is only 1 respondent (3.33%). This shows the level of education in the village of Kualu Nenas already relatively adequate. Thus facilitate respondents in absorbing the growing innovation and technology so as not to directly they can apply innovation and technology into their farmer who it turn will have an impact on the income they receive.

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Table 1. Respondents Identity

No 1 A b c d e f 2 A b c d 3 A b c d

Category Years Old 15-24 25-34 35-44 45-54 55-64 >64 Education Level Elementary School Junior Highschool Senior Highschool University Amount Family Responsibility 0-2 3-5 6-8 >8

Amount (Person) 1 6 5 8 4 1

Percentage (%) 4 24 30 32 16 4

5 10 9 1

20 40 36 4

7 10 7 1

28 40 28 4

The number of family dependents is the sum of all family members who are covered by the head of the family, both members of the family who is not productive or productive. The greater number of members of family will be getting bigger dependents of a head of households. From Table 1 can be seen that the number of dependents the biggest families are at a range of 3-5 and as many as 10 respondents (40%). While the number of dependents the smallest family is more than 8 inhabitants as much as 1 respondent (4%). This generally indicates that the number of dependents of head of family farmers respondents relatively small between 3-5 people. Nothingness dependents family intimately connected with the income that would have an effect on basic necessities and economics of family.

4.2. Social Aspect of Respondent Social condition respondent can be seen from education, health and social activities.

4.2.1. Health of Respondents. From Table 2 we can know the facilities that respondents come to treatment. In this research the observed state of health is where medical treatment is being visited by respondents. The rest of respondents visited clinic as a place to seek treatment, because the location of the clinic that are not too far from home of the respondents and relatively cheaper cost of treatment. Respondents who visited the hospital increased from as much as 3 to 5 people (66.67%) after RADP year 2015. Respondents visited the hospital, because it has diseases that require special handling of specialist doctor. The existence of RADP does not affect the respondent in choosing a place of mediation to be visited because of considerations of visiting clinic or hospital based on the disease experienced by respondent and the respondent’s ability to pay for medical treatment.

4.2.2. Education of Respondents In Table 2 we can know the family education level of respondents ranged from elementary to college. The number of families is the largest undergraduate respondents are from 20 to 22 people after RADP 2015, increased by as much as 10%. RADP does not affect on education because things are very influential is the ability of finance education and motivation from respondent itself.

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Table 2. Respondents Social Condition After RADP

No

Social Condition

1

Place of Treatment a. Clinic b. Hospital Education Responsibility a. Elementary b. Junior School c. Senior School d. University e. No School f. Yet School Social of Community a. Extension b. Mutual Extension

2

5

Respondent (Person) Year 2008 Years 2015 (Before RADP) (After RADP)

Increasing Percentage

25 3

25 5

0,00 66.67

15 14 8 20 0 9

11 18 11 22 0 13

-26.67 28.57 37.50 10.00 0.00 44.45

21 25

25 25

23.81 0.00

4.2.3. Social of Community The social condition in this research we can see in Table 2 which is social condition are observed in this research is extension and public mutual activities undertaken respondents. Agricultural extension activities held minimum once a month by officers. Officers provide technical guidance farmer through its marketing and help solve the problems that occur also accompanying Tunas Berduri Farmers groups. RADP was able to develop a sense of family and solidarity with other member of farmers groups. Before RADP not all respondent follow extension activities, with existence of RADP all respondent (100%) follow extension activities every month to get a information about pineapple productivity development, product marketing and solve problems that occurs in production and marketing activities. public mutual activities that very stand out by Tunas Berduri Farmers Groups is manage the shared land area of 1.5 Ha given by the local government to be managed by Tunas Berduri farmers groups. This shared land is successfully by officer Agency of Agriculture Extension and Food Resilience (BPPKP) from managing until marketing. This land manages interchangeably with the agreement of farmer group officer. When harvesting is done by all members of Tunas Berduri farmers groups and profit Gapoktan Tunas Berduri and the profit in getting earn use for administered of farmers groups with agreement of all members of farmers groups. 4.3. Economic Aspects of Respondents Economic aspects observed from this research include: labors, income and family expenditure pattern and saving. 4.3.1. Labor The main workforce who manage farmer respondents is the head of the family who are sometimes assisted by his wife and their children. On table 3 it is known that an increase in labor before and after RADP, because respondents in general have been working as businessman before the existence of RADP. Once there, work hours of respondents increasing. As an indicator of full worker that is working with a number of 35 hours in a

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week [3]. Work time of the respondents is from Monday to Friday, while Saturday is used by respondents to market their products and for rest. Table 3. The Change Number of Hours Working Respondents Before and After RADP

Working Time in A Week Less Than 35 hours Equal to 35 hours More than 35 hours Amount

Amount Before RADP 2008 (person) 19 0 6 25

Percentage (%) 76 0 24 100

Amount After RADP Percentage 2015 (%) (person) 10 40 2 8 13 52 26 100

In Table 3 showed respondents that working more than 35 hours before RADP is 6 people and after RADP become 13 people so an increase in as much as 52%. This condition shows that increasing utilization of time by the respondents in managing its business. According to Susenas [19], in general a lot of hours of work used by someone to work for a week will affect large or small of earned income. RADP fund is expected to be able to enhance the effort of the respondents with one indicator to be a benchmark of the success of a business, namely the number of labor that implies the development of a business. The following is Table 4 which describes the amount of labor used by respondents to run its business. Table 4.

Amount of Labor Used

No 1 2 3 4

1 person 2 person 3 person >3 person Amount

Amount of Labor Used Before and After RADP

Before RADP 2008 Amount Percentage (person) (%) 3 12 9 36 9 36 4 16 25 100

After RADP 2015 Amount Percentage (person) (%) 3 12 8 32 10 40 4 16 25 100

Table 4 shows the use of the work force in every business respondents fluctuates, this is due to amount of use of labor in influence by land and income.The greater income respondents are increasingly able to pay the wages of workforce. Table 5 shows number of manpower and the number of respondents to household income. Table 5. Amount of labor Associated with Respondents Income Before and After RADP (Rp/month)

No

Amount of Labor Used

1 2 3 4

1 person 2 person 3 person >3 person

Before RADP 2008 Amount Average (Person) Income 3 2,245,299 9 3,129,380 9 6,200,120 4 7,865,128

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After RADP 2015 Amount Average (Person) Income 3 2,514,156 8 3,744,028 10 7,406,078 4 8,694,194

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Based on table 4 and 5 we know that increasing labor also increases income of the respondents, because RADP is affected on amount of working time and amount of labor used. The respondents add work hours so that the resulting production more and more to increase earning, and the most respondents to add work to pay the installment of loan funds RADP paid every month.

4.3.2. Sources of Family Income Family income is the whole family received acceptance for a month that is retrieved from various source of income. In this case the head of the household respondents obtained from different sources namely agriculture and non-agriculture. Source of income from agriculture is Pineapple farming, pineapple chips, land of rubber, land of palm oil, fishery, and jackfruit chips while source from non-agriculture is employees, workers, and trading. For complete can be seen in Table 6 and 7. Table 6. Sources of Respondents Income

No

1 2 3 4 5 6 1 2 3

Source of Income

Amount of Respondents

Agriculture Pineapple Farming Pineaplle Chips Land of Rubber Land of Palm Oil Fishery Jackfruit Chips Non-Agriculture Employees Workers Trade Amount Average

NetIncome Rp/Month Before After RADP RADP

Increaseing Percentage

22 7 6 1 1 5

65,324,211 21,875,237 9,926,234 5,236,541 500,000 4,388,400

74,737,767 27,281,281 11,257,464 6,043,099 690,500 5,027,500

14.41 24.71 13.41 15.40 38.10 14.56

2 4 1 49 5.44

3,800,000 5,050,000 600,000 116,700,623 12,966,736

4,500,000 5,725,000 750,000 136,012,611 15,112,512

18.42 13.37 25.00 19.71

Based on Table 6, the largest source of income from agricultural sector is farmer pineapple where 22 people with total net income each month increased 14.41% from Rp.65,324,211 (before RADP) became Rp.74,737,767 (after RADP). Based on the result of research in the field as much as 22 respondents using loans to farmer pineapple and 3 those respondents using these loans to other agricultural business. Although RADP loan funds rated is relatively small by most respondents however these loans are quite helpful cultivating pineapples because aside from getting a loan fund RADP, respondents also get fertilizers that cost was subsidized by government. This fertilizer helps reduce production cost and increase net income of respondents.

4.3.3. Respondents Income Table 7 describes the amount of respondent income before and after RADP. Based on Table 7, total household income of respondents is quite high, which means that condition of the economy of the respondents is getting better. RADP loan funds simply contributes to increasing the income of household respondents, although respondents complained about the amount of loan a bit but the use of the funds are used properly by RADP respondents to increase their production.

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Tabel 7. Amount of Household Income Before and After RADP (Rp/month)

No

Amount of Household Income

Before RADP 2008 Amount Percentage (respondents) (%)

0 – 2,999,999 3,000,000 - 5,999,999

1 2 3

(respondent s) 28 7

7 11 7 25

>6,000,000 Amount

After RADP 2015 Amount Percentage

44 28 100

(%) 28

10 8 25

40 32 100

4.3.4. Expenditure of Respondents Household Household expenditure is one indicator of the growing economy because of the presence of community expenditure can be known the amount of consumption of the good society that is food or non-food. The greater income used for expenditure of the non-food then showed that the level of the economy increased family vice if large needs for food shows the level of economy still low [4]. Expenditure of Food and Non-Food is shown by Table 8. Table 8. Expenditure of Respondents Food and Non-Food Before and After RADP (Rp/month)

No

Amount of Expenditure (Rp/bln) 1 0 - 500.000 2 501.000 - 1.000.000 3 1.001.000 - 1.500.000 4 > 1.500.000 Amount

Food Before RADP After RADP (Person) (Person) 8 0 10 16 6 5 1 4 25 25

Non-Food Before After RADP RADP (Person) (Person) 2 1 12 12 7 3 4 8 25 25

Based on Table 8, we know that spending on food and non-food sector increase due to increasing in prices from prior RADP. Based on interviews with respondents, respondent expenditure is influenced by the level of respondents need and the level of the price of the product. The level of economy is better because non-food expenditure is greater than food. Table 9. Saving of Respondents Before and After RADP (Rp/month)

No 1 2 3 4 5

Saving Rp/month

Before RADP (Person)

%

After RADP (Person)

%

0- 1.000.000 1.001.000-2.000.000 2.001.000-3.000.000 3.001.000-4.000.000 >4.000.000 Amount

9 4 2 4 6 25

36 16 8 16 24 100

11 1 1 6 6 25

44 4 4 24 24 100

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4.3.5. Saving The difference between income and expenditure of the respondents is saving that can be used in accordance with the wishes of the respondents such as to invest in other production effort or just in case if there are other pressing needs. Based on research result, all the respondents had saving which means income respondents greater than expenditures for consumption. Saving of respondents before and after RADP is shown in Table 9. Based on table 9, there is increasing on saving due to increase income. Respondents have savings more than Rp.4,000,000 in addition to the cultivation of pineapple, pineapple chips and other plantation. The average increase in revenue is not just from pineapple farming but also from the other sideline business. Loans fund from RADP given to respondents to support farming pineapple, but not all of the respondents use the funds to bolster this effort. These funds were used for personal needs/consumption so that the goal of the programs is not yet optimal. Supervision from officers of Tunas Berduri Farmers Groups is needed in effort of RADP goal can be achieved.

5. Conclusion There are 2 Effect from this study first is Social Effect, After RADP, social condition of respondents include health, hospital as place for medical increase as much as 66,67% , meanwhile education of respondents increased but not influenced by RADP because its Goverment Regulation on Education, also after RADP, all respondents in social increase as much as 100% these respondents follow the extension activities. Second is Economic Effect, when use of labor and hours worked are increased, then revenue increase due to the obligation of the respondents to return the RADP loans, and The largest income obtained respondent is on the agriculture sector, namely pineaplle farming increased by 14,41% after RADP, also the food expenditure after RADP is increase by 49,94% and non-food expenditure increase by 35,00%. The increase in spending occured because the level of needs and price, and last saving all respondents after RADP increase as much as 11,07%..

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