Proceedings: 2nd International Conference on Food and Agricultural Economics: ANALYSIS OF INCOME DETERMINANTS AMONG FARM HOUSEHOLDS IN THE UPLAND SHALLOT PRODUCTION CENTER IN MALANG DISTRICT, INDONESIA

Poverty in rural areas is still a problem in economic development in Indonesia and shallot is an important agricultural commodity in the food security where shallot is one of the main ingredients in almost all Indonesian cuisine. To overcome imports, government encourages the cultivation of shallot to upland area whereas it is known that the cultivation of shallot in this area faces several problems. The purpose of this study is to analyze the income patterns and factors that determine the income level of farm households in the center of shallot production. The main data used in this study is primary data collected from farm household samples through interviews using structured questionnaires as well as observations. Sampling method used is purposive sampling with representative consideration to population diversity. Descriptive statistics and multiple regression analysis are the major analytical tools employed for the study. The results of analysis show that farmers in the study area, in addition to cultivating shallot as well as various horticultural commodities, food and livestock integrated in cropping pattern. Shallot farm income contributes the most to household income, followed by income from livestock and chili farming. Human capital in the form of education level, household size, number of labor; natural capital in the form of farm and agroforestry land size; physical capital in the form of livestock ownership; financial capital in the form of access to credit; as well as social capital in the form of cropping patterns are the variables that significantly affect household income of farmers.