The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, Indonesia

Rural transformation (RT) is a process in which the agricultural system undergoes transformation towards off-farm, commercial, and market-oriented ones. The research objective is to analyze the dynamics of rural transformation, farmer incomes, and poverty in rural areas in North Sumatra. This study...

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Main Authors: Reviza Rachmawati Rika, Juliani Purba Helena, Sudaryanto Tahlim, Erwidodo, Kristyantoadi Dermoredjo Saktyanu, Riski Irawan Aldho
Format: Article
Language:English
Published: EDP Sciences 2023-01-01
Series:E3S Web of Conferences
Online Access:https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/81/e3sconf_iconard2023_03012.pdf
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author Reviza Rachmawati Rika
Juliani Purba Helena
Sudaryanto Tahlim
Erwidodo
Kristyantoadi Dermoredjo Saktyanu
Riski Irawan Aldho
author_facet Reviza Rachmawati Rika
Juliani Purba Helena
Sudaryanto Tahlim
Erwidodo
Kristyantoadi Dermoredjo Saktyanu
Riski Irawan Aldho
author_sort Reviza Rachmawati Rika
collection DOAJ
description Rural transformation (RT) is a process in which the agricultural system undergoes transformation towards off-farm, commercial, and market-oriented ones. The research objective is to analyze the dynamics of rural transformation, farmer incomes, and poverty in rural areas in North Sumatra. This study used secondary data from Statistics Indonesia and analyzed using descriptive and tabular methods. The results show that the agricultural structure has shifted over the last two decades from low-value commodities (food crops) to high-value commodities. At the same time, non-farm employment opportunities also showed an increase. The development of high-value commodities and non-farm sectors has also contributed to reducing rural poverty rates. The plantation sub-sector is the highest contributor to agricultural GDP in North Sumatra and tends to increase yearly, in addition to the livestock and horticulture. The non-agricultural industry began to increase and contributed significantly to GDP. Per capita income in 2011-2020 has increased. Poverty depth and severity are still below the national average, meaning that efforts to alleviate poverty have been relatively successful to increase incomes and reduce poverty in rural areas, one of the strategies that need to be taken is to encourage the development of high-value commodities and expand non-agricultural employment opportunities in rural areas.
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spelling doaj.art-d45e954d0d7f4897896370254fdf636e2024-01-26T10:27:44ZengEDP SciencesE3S Web of Conferences2267-12422023-01-014440301210.1051/e3sconf/202344403012e3sconf_iconard2023_03012The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, IndonesiaReviza Rachmawati Rika0Juliani Purba Helena1Sudaryanto Tahlim2Erwidodo3Kristyantoadi Dermoredjo Saktyanu4Riski Irawan Aldho5Research Center for Behavioral and Circular Economics National Research and Innovation AgencyResearch Center for Behavioral and Circular Economics National Research and Innovation AgencyResearch Center for Behavioral and Circular Economics National Research and Innovation AgencyResearch Center for Economics of Industry, Services, and Trade National Research and Innovation AgencyResearch Center for Economics of Industry, Services, and Trade National Research and Innovation AgencyIndonesian Center for Agriculture Socio-Economic and Policy StudiesRural transformation (RT) is a process in which the agricultural system undergoes transformation towards off-farm, commercial, and market-oriented ones. The research objective is to analyze the dynamics of rural transformation, farmer incomes, and poverty in rural areas in North Sumatra. This study used secondary data from Statistics Indonesia and analyzed using descriptive and tabular methods. The results show that the agricultural structure has shifted over the last two decades from low-value commodities (food crops) to high-value commodities. At the same time, non-farm employment opportunities also showed an increase. The development of high-value commodities and non-farm sectors has also contributed to reducing rural poverty rates. The plantation sub-sector is the highest contributor to agricultural GDP in North Sumatra and tends to increase yearly, in addition to the livestock and horticulture. The non-agricultural industry began to increase and contributed significantly to GDP. Per capita income in 2011-2020 has increased. Poverty depth and severity are still below the national average, meaning that efforts to alleviate poverty have been relatively successful to increase incomes and reduce poverty in rural areas, one of the strategies that need to be taken is to encourage the development of high-value commodities and expand non-agricultural employment opportunities in rural areas.https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/81/e3sconf_iconard2023_03012.pdf
spellingShingle Reviza Rachmawati Rika
Juliani Purba Helena
Sudaryanto Tahlim
Erwidodo
Kristyantoadi Dermoredjo Saktyanu
Riski Irawan Aldho
The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, Indonesia
E3S Web of Conferences
title The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, Indonesia
title_full The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, Indonesia
title_fullStr The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, Indonesia
title_full_unstemmed The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, Indonesia
title_short The dynamics of rural transformation, household income, and poverty reduction: Case study in North Sumatra, Indonesia
title_sort dynamics of rural transformation household income and poverty reduction case study in north sumatra indonesia
url https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/81/e3sconf_iconard2023_03012.pdf
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