Analysis of factors that affecting rice farmer’s welfare in Banten Province

Agriculture is a sector that supports Indonesia’s economic development. Agriculture in the food crop sector of the province of Banten experienced a significant increase. In 2021, Banten province will become one of the best provinces in producing rice productivity in Indonesia. Government policies need to be directed at the welfare of farmers to support the province of Banten to become the largest rice-producing province. The purpose of this research is to determine the welfare level of rice farmers in Banten province and the factors that affect the welfare of rice farmers in Banten province. Farmer’s Exchange Rate is one measure in determining welfare. The Laspayers pricing index and multiple linear regression are the analysis techniques used to determine the variables that influence the welfare of the farmer. The study shows that the farmer expenditure indicator is more than the price of the agricultural commodity. The NTP (Farmer Exchange Rate) will decline in value in 2021 as a result of it. This condition is caused by the pandemic and inflation in consumer goods. Consumer price index and rice price are affecting the NTP. These factors have a positive affecting on the NTP.