EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERS
This research explores changes in staple food price trends and their impact on the Farmers' Term of Trade (FTT) as a primary indicator of farmer prosperity. Utilizing secondary data analysis, the study processes monthly staple food price data from January 2018 to July 2023 and FTT data from Jan...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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iVolga Press
2023-12-01
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| Series: | Eurasia: Economics & Business |
| Subjects: | |
| Online Access: | http://econeurasia.com/issue-2023-12/article_08.pdf |
| _version_ | 1827382807122411520 |
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| author | Bano M. Nendissa D.R. Elvani S. Lerik M.D. |
| author_facet | Bano M. Nendissa D.R. Elvani S. Lerik M.D. |
| author_sort | Bano M. |
| collection | DOAJ |
| description | This research explores changes in staple food price trends and their impact on the Farmers' Term of Trade (FTT) as a primary indicator of farmer prosperity. Utilizing secondary data analysis, the study processes monthly staple food price data from January 2018 to July 2023 and FTT data from January 2019 to July 2023. This analysis employs a coefficient of variation method to track food price changes and calculates the FTT value based on the comparison of the price index received by farmers to their expenses, serving as a marker of farmer welfare. The study's findings reveal a significant influence of food price alterations on FTT and farmer welfare. There is a marked difference in the dynamics of staple food prices and FTT across various regions in Indonesia. These price variations are influenced by changes in agricultural input costs, such as fertilizers and labor wages, impacting the FTT value. Sectoral analysis indicates that during the Covid-19 era, food crop farmers have a lower level of prosperity (<100) compared to the livestock sector. Meanwhile, farmers in the horticulture, plantation, and fisheries sectors show higher welfare levels with FTT values above 100. Plantation farmers record the highest FTT values (>>100) during the pandemic. This study highlights the importance of farmers' understanding and adaptation to the dynamics of food prices and FTT. Adaptation strategies may include changes in production strategies, government support, crop diversification, and the adoption of new technologies, even amidst external challenges such as climate change. The interaction between food price dynamics, FTT, and its relation to farmer welfare provides essential insights for formulating more effective policies to support farmer welfare and food security in Indonesia. |
| first_indexed | 2024-03-08T14:27:42Z |
| format | Article |
| id | doaj.art-00ea716570994b22a10792ece5a3f368 |
| institution | Directory Open Access Journal |
| issn | 2522-9710 |
| language | English |
| last_indexed | 2024-03-08T14:27:42Z |
| publishDate | 2023-12-01 |
| publisher | iVolga Press |
| record_format | Article |
| series | Eurasia: Economics & Business |
| spelling | doaj.art-00ea716570994b22a10792ece5a3f3682024-01-12T18:21:06ZengiVolga PressEurasia: Economics & Business2522-97102023-12-0178128190EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERSBano M.0Nendissa D.R.1Elvani S.2Lerik M.D.3Department of Agribusiness, Faculty of Agriculture, University of Nusa CendanaDepartment of Agribusiness, Faculty of Agriculture, University of Nusa CendanaDepartment of Agribusiness, Faculty of Agriculture, University of Nusa CendanaDepartment of Psychology, Faculty of Public Health, University of Nusa CendanaThis research explores changes in staple food price trends and their impact on the Farmers' Term of Trade (FTT) as a primary indicator of farmer prosperity. Utilizing secondary data analysis, the study processes monthly staple food price data from January 2018 to July 2023 and FTT data from January 2019 to July 2023. This analysis employs a coefficient of variation method to track food price changes and calculates the FTT value based on the comparison of the price index received by farmers to their expenses, serving as a marker of farmer welfare. The study's findings reveal a significant influence of food price alterations on FTT and farmer welfare. There is a marked difference in the dynamics of staple food prices and FTT across various regions in Indonesia. These price variations are influenced by changes in agricultural input costs, such as fertilizers and labor wages, impacting the FTT value. Sectoral analysis indicates that during the Covid-19 era, food crop farmers have a lower level of prosperity (<100) compared to the livestock sector. Meanwhile, farmers in the horticulture, plantation, and fisheries sectors show higher welfare levels with FTT values above 100. Plantation farmers record the highest FTT values (>>100) during the pandemic. This study highlights the importance of farmers' understanding and adaptation to the dynamics of food prices and FTT. Adaptation strategies may include changes in production strategies, government support, crop diversification, and the adoption of new technologies, even amidst external challenges such as climate change. The interaction between food price dynamics, FTT, and its relation to farmer welfare provides essential insights for formulating more effective policies to support farmer welfare and food security in Indonesia.http://econeurasia.com/issue-2023-12/article_08.pdfprice dynamicscoefficient of variationfarmer's terms of tradewelfare of farmers |
| spellingShingle | Bano M. Nendissa D.R. Elvani S. Lerik M.D. EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERS Eurasia: Economics & Business price dynamics coefficient of variation farmer's terms of trade welfare of farmers |
| title | EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERS |
| title_full | EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERS |
| title_fullStr | EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERS |
| title_full_unstemmed | EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERS |
| title_short | EXPLORING THE DYNAMICS OF FOOD PRICES AND FARMER’S TERMS OF TRADE: REFLECTING ON THE WELFARE OF INDONESIAN FARMERS |
| title_sort | exploring the dynamics of food prices and farmer s terms of trade reflecting on the welfare of indonesian farmers |
| topic | price dynamics coefficient of variation farmer's terms of trade welfare of farmers |
| url | http://econeurasia.com/issue-2023-12/article_08.pdf |
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