Allocation Optimization of Farmers? Resources to Achieve Maximum Income in Parigi Moutong Regency

摘要

Background and Objective: In both the rural and urban areas of Parigi Moutong Regency in Indonesia, rapid socio-economic development has created a contradiction between increasing resource needs and the availability of farmers? resources. The objective of this research was to examine how the resources of farmers might be optimally allocated in order to achieve maximum income through farming. Materials and Methods: One hundred and seventy farms were sampled. Sampling was done by stratified random sampling based on the area of cultivated land. Results: The research results showed that farmers in rural areas were more efficient in resource usage, both of their own resources [especially labor inside family (LIF)] and of outside resources (fertilizer usage, labor outside family (LOF) and credit loans). As a result, the average rural farming household income of the region surveyed was much higher than the equivalent average in the urban area. Farmers in both areas (rural and urban) would be able to achieve optimal resource management. However, the optimal allocations reached by the two areas would necessarily be different. Some farmers in rural areas could choose to increase labor productivity. This would be reflected in the utilization of more controlled capital and would produce a dual value of 10.11%, much larger than that achievable by farmers in the urban area. Conclusion: With the best use of capital, farmers in the rural area would be able to earn a higher household income on average. The average farmer?s household income in the rural area could increase by as much as 5.10%, whereas the same in the urban area would result in an increase of only 2.15%.