Research Paper
Year: 2022 | Month: April | Volume: 9 | Issue: 4 | Pages: 35-55
DOI: https://doi.org/10.52403/ijrr.20220406
Analysis of the Factors That Affect the Income of Oil Palm Farmers in Tanjung Medan District, Rokan Hilir Riau Regency
Fitri Sholawati Ritonga1, Sya’ad Afifuddin2, Raina Linda Sari3
1Posgraduate Students, Faculty of Economics and Business, Departement of Economics,Universitas Sumatera Utara, Indonesia
2,3Postgraduate Lecturer, Faculty of Economics and Business, Departement of Economics,Universitas Sumatera Utara, Indonesia
Corresponding Author: Fitri Sholawati Ritonga
ABSTRACT
This study was conducted to determine the factors that influence the income of oil palm farmers in Tanjung Medan District, Rokan Hilir Regency, with production as an intervening variable. Oil palm farmers' income is the dependent variable, while labor, land area, working capital and price are independent variables. The population in this study is the Tanjung Medan District community which consists of 6 villages, with a population of 4,574 people. The sample in this study amounted to 110. The types of data used in this study were primary and secondary data. The method used in this research is path analysis. Path analysis is the development of multiple regression analysis which describes the magnitude of the influence of the independent variables on the dependent variable indirectly. using SPSS AMOS 22. The results in this study indicate that labor, working capital and prices have a positive and significant effect on production, but labor has no effect on production. labor, working capital have a positive and significant effect on income, while land area and price have no effect on income. The results of the path analysis show that there is an indirect relationship between labor, working capital, and selling prices on income through production. while the area of land does not indirectly have a significant effect on income through production.
Keywords: Labor, Land Area, Working Capital, Selling Price, Production, Income.
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