Factors Influencing The Exchange Rate of Smallholder Plantation Crops Subsector Farmers in Sumatra Island

Abstract

This study aims to find out how the influence of factors influencing the exchange rate of farmers in the smallholder plantation sub-sector on the island of Sumatra in 2016 – 2020, such as the area of plantation land, the number of plantation farmers, the level of production of plantation crops, and wages for harvesting plantations on the island of Sumatra and to find out the 4 factors mentioned above jointly affect the exchange rate of farmers in the smallholder plantation sub-sector on Sumatra Island in 2016-2020. The method used in this study is a quantitative descriptive analysis method. The number of provinces studied is 10 provinces on the island of Sumatra. The type of research used is descriptive quantitative. The data used is secondary data. The number of provinces studied is 10 provinces on the island of Sumatra. This research is a panel data study using the panel data regression analysis method over a period of 5 years, namely 2016 - 2020 on the island of Sumatra. which is done with the Eviews 10 application using the Random Effect Method approach. The results of this study indicate that the plantation area variable has a positive and significant relationship to the Smallholders'; Exchange Rate (NTP) of the smallholder plantation sub-sector, the plantation production level variable has a positive and significant relationship to the Farmers'; Exchange Rate (NTP) of the smallholders'; plantation sub-sector, the total plantation farmers have a positive and significant relationship to the Smallholders'; Exchange Rate (NTP) of the smallholder plantation crops sub-sector, and the plantation harvesting wage variable has a positive and significant relationship to the Farmers'; Exchange Rate (NTP) of the smallholders'; plantation crops sub-sector. Also, the four variables mentioned above jointly have a significant effect on Farmers'; Terms of Trade (NTP) in the smallholder plantation sub-sector