AUTHORS: Asrol, Heriyanto

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ABSTRACT: Kampar Regency is one of the districts in Riau Province; it has considerable contributions to the economy of Riau Province, especially in the agricultural sector through plantations. Rubber plantations have important roles and positions economically and socially, absorbing labor and ecological roles. Plantations are also a source of prosperity, progress, independence, and pride of Kampar district government. This study aims to analyze the household income structure of rubber farmers, the household expenditure of rubber farmers, dominant factors affecting the household expenditure of rubber farmers, and the welfare level of rubber farmer households. These objectives are addressed using income analysis, descriptive analysis, multiple linear regression model, and poverty line. Results show that the highest income structure of rubber farmer households is 52.59%, the income is 43.32%, and the non-farm income is 4.09%. The largest percentage of Kampar rubber farmer households is 61.42% from non-food expenditure, especially education expenditure of 43.94%. The dominant factors that affect the household expenditure of rubber farmers in Kampar Regency include household income, number of family members, dummy of land area, and savings, whereas the traditional variable of farmer education is insignificant to household expenditure of rubber farmers. Furthermore, Kampar rubber farmer households belong to the prosperous household group because the per capita income per month is above the poverty line.

KEYWORDS: Rubber Farmer, Income Structure, Expenditure, Welfare

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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #1, pp. 1-8


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