Analysis of Effect Socio-economic Factors on Integrated Farming

System based on Paddy Rice and Regional Development in

Parlilitan District Humbang Hasundutan Regency

Hotden L. Nainggolan

1.2*

, Marlon Sihombing

, Tavi Supriana

Ma’ruf Tafsin

, Albina Ginting

Graduate School of Regional Planning, University of Sumatera Utara, Indonesia

Faculty of Agriculture, University of HKBP Nommensen, Indonesia

Faculty of Social and Political University of Sumatera Utara, Indonesia

Faculty of Agriculture University of Sumatera Utara, Indonesia

Keywords: Socio Economic, Integrated Farming, Regional Development, Input Price, out Price.

Abstract : The aim of research to analyze the effect of socio-economic factors on integrated farming system based on

paddy rice and regional development in Parlilitan District. The method of researh is Structural Equation

Modeling (SEM) with IBM® SPSS® Amos 22 software. The result of research are; a) Socio-economic factors

have a positive and significant impact on integrated farming system based on paddy rice, with path coefficient

0,54 (CR 5,487> 1,96, p (***) <0.01), b) Socio-economic factors have positive and significant impact to

regional development with path coefisien is 0,64 (CR 4,4614 > 1,96 and p (***) < 0.01), c) Variables of

education, farm experience, social capital, venture capital, input prices and output prices are predictors of

socio-economic factors that contribute to farmers' perceptions of integrated farming systems and regional

development, a statistically significant with standardized regression weight (p) of each indicator, p <0.01, d)

Direct effect of socio-economic factors to regional development in Parlilitan District is 0,64, while indirect

effect of socio-economic factors on development regional through integrated farming system is 0.34, the

meaning is that socio-economic factors positively and significant to development regional through integrated

farming systems, e) Increasing of predictors socio-economic factor is dominant factor to determine the success

of integrated farming systems will be able to increase the development regional. Variable of farmer education,

farmer experience, capital venture are predictors of socio-economic factors is important role in eradicating

rural poverty as one indicator of regional development.

1 INTRODUCTION

1.1 Background

Agricultural development is very important for

national development. The development of

agriculture in Indonesia has an important role, where:

the large and diverse natural resource potential, the

substantial share of national income, the large share

of national exports, the size of Indonesia's dependent

population on this sector, its role in the provision of

community food and growth base in the countryside.

The goals of national development include several

aspects, namely economic growth, equitable

distribution of community income and employment

opportunities and the preservation of potential

resources. The success of development in Indonesia

requires cooperation and support from various parties

and the role of each sector. One sector that is expected

to support economic development goals is the

agriculture sector.

In the development of a region required proper

planning because with proper planning will lead the

development on a goal to be achieved and a positive

impact on the area itself. Proper planning is a plan

that is built on the potential or superiority of the area

itself. The concept of regional planning is a

continuation of the planning activities carried out

because of differences in interests, issues,

characteristics and potential of each region / region

that requires the intervention of the government at the

regional level.

Nainggolan, H., Sihombing, M., Supriana, T., Tafsin, M. and Ginting, A.

Analysis of Effect Socio-economic Factors on Integrated Farming System based on Paddy Rice and Regional Development in Parlilitan District Humbang Hasundutan Regency.

DOI: 10.5220/0010038500690077

In Proceedings of the 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and Technology (ICEST 2018), pages 69-77

ISBN: 978-989-758-496-1

Based on statistical data Humbang Hasundutan

(2012), convey the agricultural sector has a large

contribution to GRDP Humbang Hasundutan

Regency, namely; 60.61% (2007), 60.11% (2008),

59.08% (2009), 58.01% (2010), 57.85% (2011).

Agriculture is also a sector with the greatest growth

source to the total economic growth of Humbang

Hasundutan Regency in 2007-2011. The increasing

contribution of the agricultural sector to total GDP

growth was supported by increased production of all

subsectors (except for the forestry sub-sector in

2007). Agricultural sector in Humbang Hasundutn

Regency such as food crops (rice, corn, sweet potato

and cassava), vegetables (potato, cabbage, carrot and

chilli), fruits (citrus, banana), plantation crops, palm

oil, chocolate, coffee and incense).

Future agricultural development should be an

effort to improve the welfare of farmers, and able to

encourage the realization of regional economic

development through various productive activities

and high competitive. So farmers as the smallest

agribusiness unit achieve a rational added value

according to the scale of its farming (integrated

farming system).

Agus (2006); Ugwumba (2010), said the

integrated farming system (IFS) can improve the

productivity of rice farming and can increase farmers'

income. Rice production may increase from 5-6 ton/

ha to 7.6-8 ton/ ha. The productivity of chili can be

increased from 0.5 kg / plant to 0.7 kg/ plant

(Nurcholis, 2011), even integrated farming system

(IFS) more reliable if the constituent components are

local resources (Salikin, 2003).

Sutanto (2002); Supangkat (2009) stated that

integrated farming system (IFS) has the advantage of

both ecological and economic aspects, namely

adaptive to habitat changes, eco-friendly farming,

energy saving, high biodiversity, higher product

diversification, healthier products, better labor

absorption and sustainable.

The advantages of this system, external inputs are

minimal because of the waste cycle among their

constituent organisms, biodiversity increases with the

use of local resources, crop resistance to higher pest

organisms and byproducts can serve as biogas fuel for

households (Rodriguez and Preston 1997; Preston,

2000).

Parlilitan District is one of the region in Humbang

Hasundutan Regency with potential for the

development of paddy rice farming spread over 20

villages. In 2013 the widest paddy rice is located in

Simaninggir Village covering an area of 237 ha with

production of 1,864 tons, with an average production

of 7.86 tons/ ha (BPS, Kecamatan Parlilitan Dalam

Angka, 2015). The average production of paddy rice

commodity in this Parlilitan District is higher when

compared to productivity of paddy rice of Humbang

Hasundutan Regency.

In 2014 recorded area of paddy rice in Parlilitan

District is 2,791 ha with average production 5,89

ton/ha a bigger than with productivity of paddy rice

of Humbang Hasundutan Regency that is 5,27 ton/ha,

so it needed more comprehensive agriculture

development according to the potential and condition

of this agro-ecology region in order to increase the

income of farmers in this region, thus this research

with title the analysis of effect socio-economic

factors to integrated farming system base on paddy

rice and regional development in Parlilitan District of

Humbang Hasundutan Regency.

1.2 Research Purposes

Based on the background description, the purpose of

this study is to analyze the influence of socio-

economic factors on integrated farming systems

based on paddy rice and regional development in the

District of Parlilitan Humbang Hasundutan Regency.

2 RESEARCH METHODS

2.1 Research Sites

The location of this research is Parlilitan District of

Humbang Hasundutan Regency, determined

purposively. The region is a very potential area for the

development of the agricultural sector in the

framework of regional development. The population

in this study are farmers who cultivate the paddy rice

and livestock business on integrated scale in 20

villages with population 468 family head. The sample

was determined using Slovin formula;

Where; nc = sample size, e = error interval (0,1), N

= total of population.

Total of samples obtained based on the formula

are 100 samples. The samples interviewed by each

region were determined proportionally, and

distributed proportionally to 14 villages, as follows;

Pusuk II Simaninggir 7 samples, Pusuk I and Sionom

Hudon 7 each 11 samples, Baringin 9 samples, S

Hasugian Tonga 8 samples, Sionom Hudon Selatan

13 samples, Sionom Hudon Timur and Sionom

Hudon Runggu each 3 , Sionom Hudon Julu 12

samples, Sionom Hudon Tonga and Sionom Hudon

)1(





ICEST 2018 - 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and

Technology

Toruan and S Hasugian Hasbinsaran each 5 Samples,

and Hutanapa and S Hasugian Dolok II each 4

samples.

2.2 Types and Data Sources

The data used in this researh are; primary data and

secondary data. Primary data is data obtained from

the respondents through interviews using a

questionnaire. Secondary data is data obtained from

the publication of Biro Pusat Statistik (Central Bureau

of Statistics)/ (BPS) of Humbang Hasundutan

Regency and various journals, research results and

other official publications.

2.3 Research Variable

In facilitating the measurement of variables it must be

able to explain the parameters or indicators in the

form of numbers. In this researh the variables

analyzed are; a) exogenous latent variable socio-

economic factors (X1) with 7 indicators (measurable

variables) that is education level (X1.1); social capital

(X1.2); farming experience (X1.3); venture capital

(X1.4); input prices (X1.5); output price (X1.6); b)

Endogenous latent variables of integrated farming

system (Y1) with 3 indicators (measurable variables),

that is increase in income (Y1.1); improvement of

food security (Y1.2); Cultural preservation (Y1.3); c)

Endogenous latent variables of regional development

(Y2) with 3 indicators (measurable variables), that is

environmental impact reduction (Y2.1); poverty

reduction (Y2.2); increased market access (Y2.3).

2.4 Data Analysis Method

The methods of analysis data in researsh to analyze

the socio-economic factors on integrated farming

system base on paddy rice and regional development

in Parlilitan Distric were analyzed by Structural

Equation Modeling (SEM) using IBM® SPSS®

Amos 22 software.

The modeling process in this research is done

through several steps (Shek and Yu, 2014), that is; 1)

Model specifications; 2) Model identification; 3)

Model estimation (part 1), ie modify the model by

considering model fit and index modification. 4)

Model estimation (part 2), perform structural model

analysis. 5) Evaluation model is evaluation of

goodness-of fit model. 6) Modification of model that

is model respesification based on model matching

model.

In this researh used the overall fit assessment

model. The match criteria for the measurement model

and structural model in shown Table 1.

Table 1: Matching criteria for measurement model and

structural model.

Indicator

Defenition

Match rate

acceptable

escription

Description

Chi-Square

The smaler

(p-value ≥ 0,05)

The better

RMR

Root mean

square

residual

RMR ≤ 0.05 Good

GFI

Goodness of

fit index

GFI ≥ 0.90

0.80 ≤ GFI

< 0.90

Good

Pretty good

NFI

Normed fit

index

NFI ≥ 0.90

0.80 ≤ NFI

< 0.90

Good

Pretty good

CFI

Comparative

Fit Index

NFI ≥ 0.90 Good

NCP

Noncentrality

parameter

(fixed

parameter

associated

with DF)

The smaler Pretty good

RMSEA

Root mean

square error

approximation

RMSEA ≤ 0.01

0.01 < RMSEA ≤

0.05

0.05 < RMSEA ≤

0.08

Very good

Good

Pretty good

Source: Processed 2017.

If the model has not met the match criteria, the

model is post-hoc specified. Based on theoretical

compatibility and theoretical diagnostic information,

the model is revised and reconciled with data to

improve the goodness of fit model. The path in the

model is said to be insignificant (p > 0.05), indicating

incorrect factor load. Pruning will get a simple model

with a greater degree of freedom so that the model is

better. The next stage examines the relationship

between socio-economic factors, integrated farming

system based on paddy rice and regional development

in Parliltian District of Humbang Hasundutan

Regency.

The immediate effect is examined through the

standard regeresi weights (path coefficients) between

the latent variables. The direct effect is significant if

the probability value of standard regression weight is

significant (p <0.05) or within the 95% confidence

interval. The indirect effect is checked by taking into

account the independent variables → the mediator

mediator variable → the dependent variable in which

the standard regression weight values for both paths

(the value of the independent variable and the

intermediate variable x the value of the intermediate

variable and the dependent variable). Indirect effects

must be higher than direct influence to show the effect

of mediation occurs in structural modeling.

If the intermediate variable does not give a shift

affecting the main factor (p> 0.05), it can be said that

Analysis of Effect Socio-economic Factors on Integrated Farming System based on Paddy Rice and Regional Development in Parlilitan

District Humbang Hasundutan Regency

Socio-economic

factors

Integrate

Farmin

Improve of

food securit

Increase in

income

Cultural

reservatio

Education

level

Social

capital

Farming

experience

Ventura

capital

Input

price

Output

price

0,84

0,83

0,95

0,85

0,84

0,92

0,81

0,91

0,75

0,54

mediation does not occur. A review of the probability

value needs to be done after calculating the

multiplication of the standard regression weight of the

independent variable and the intermediate variable

with the standard regression weight of the

intermediate variable and the independent variable.

3 RESULT

3.1 The Effect of Socio-economic

Factors on Integrated Farming

System Base on Paddy Rice

Based on data analysis using structural equetion

modeling (SEM), to see the effect of socio-economic

factors on integrated farming system base on padyy

rice in Parlilitan District obtained the results in show

in Table 2.

Table 2: Regression weight of full structural equetion

modeling (SEM).

Estimate S.E. C.R. P

Integrated

_Farming_

System

←

Social_

Economic_

Factors

0.54 0.087 5.487 ***

Regional_

Development

←

Integrated_

Farming _

System

0.53 0.075 6.323 ***

Regional_

Development

←

Social_

Economic_

Factors

0.64 0.068 4.614 ***

Source: Primary data, processed 2017.

Table 2 shows the probability of obtaining a

critical ratio value of 5,487 in absolute value is less

than 0.01, its means the regression weight for socio-

economic factors in predicting integrated farming

system base on paddy rice at the 0.01 (two-tailed)

level. The critical ratio value of 4.614 in absolute

value is less than 0.01, its means the regression

weight for socio-economic factors in predicting

regional development is significantly different from

zero at the 0.01 (two-tailed) level.

The results of data analysis are presented in the

form of statements as in Table 2, stated correctly in

accordance with the standard weight regression

estimation results obtained in Table 3.

Table 3: Regression standard weights.

Variable Variable Estimation

Integrated_

Farming_

System

←

Social_Economic_

Factors

0.54

Regional_

Developmen

←

Integrated_Farming_

System

0.53

Regional_

Developmen

←

Social_Economic_

Factors

0.64

Source: Primary Data, processed 2017.

Table 3 shows that if the socio-economic factor

rises 1 standard deviation, the integrated farming

system increases by 0.54 standard deviations. When

integrated farming systems rose by 1 standard

deviation, regional development increased by 0.54

standard deviations. As the socio-economic factors

rose by 1 standard deviation, the development of the

area increased by 0.64 standard deviations.

Based on result of data analysis with structural

equetion modeling (SEM) show coefficient of socio-

economic factor to integrated farming system based

on paddy rice, equal to 0,54 with CR value 5,487 >

1,96 (Rusiadi, et al, 2013) and p (***) < 0.01 (Table

2), the results of this study indicate that the socio-

economic factors have a positive and significant

impact to integrated farming system base on padyy

rice in Parlilitan District as in Figure 1.

Figure 1. The effect of socio-economic factors on integrated

farming system base on paddy rice.

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Technology

3.2 The Effect of Socio-economic

Factors on Regional Development

Based on the result of data analysis by using structural

equetion modeling (SEM) obtained coefficient of

socio-economic factor impact to the regional

development in Parlilitan District with value 0,64 ,

CR 4,4614 > 1,96 (Rusiadi, et al, 2013) and p (***) <

0.01 (Table 2), the results of this analysis indicate that

the socio-economic factors have a positive and

significant effect on the regional development in

Parlilitan District as in Figure 2.

Figure 2. The Effect of socio-economic factors on the

regional development in Parlilitan District.

3.3 Effect of Socio-economic Factors on

Regional Development through

Integrated Farming System

Based on the results of data analysis, the direct effect

of socio-economic factors to the regional

development in Parlilitan District is 0.64. The

indirect effect of socio-economic factors to the

regional development through the intermediate

integrated farming system base on paddy rice is

0.64×0.54 = 0.34. The total effect of socio-economic

factors of farmers on the regional development is

(0.34) + (0.53) = 0.87, thus the socio-economic

factors of farmers have a positive and significant

impact on the regional development in Parlilitan

District of Humbang Hasudutan Regency through

integrated farming system base on paddy rice as in

Figure 3.

Figure 3. Effect of socio-economic factors on regional

development through integrated farming system base on

paddy rice.

4 DISCUSSION

4.1 Effect of Socio-economic Factors on

Integrated Farming System Base on

Paddy Rice

Based on the results of data analysis as shown in

Figure 1, it shows that education level, social capital,

farming experience, business capital, input price,

output price are predictors of socio-economic factors

that contribute to the perception of farmers on

integrated farming system in Parlilitan District.

The results of this study are in line with

Burhansyah (2014) research, which conveyed that the

respondents' educational level significantly affected

the acceleration of technology adoption in gapoktan

in Kalimantan. Thus the implications of these

findings provide clues that to develop an integrated

farming system in District of Parlilitan Equality is to

Socio-

econo

mic

Regional

Development

Educatio

n level

Social

ital

Farming

erienc

Ventura

ital

Input

rice

Output

rice

0,8

0,9

0,8

0,9

0,8

Environmenta

l impact

Poverty

reduction

Increased

market

0,7

0,6

Integrated

Farming

System

Improve of

food

Increase

in income

Cultural

reservati

0,8

0,9

0,7

Socio-

economi

c factors

Regional

Developme

Educatio

n level

Social

capital

Farming

experienc

Ventura

capital

Input

price

Output

price

0,8

0,9

0,8

0,9

0,8

Environmental

impact reduction

Poverty

reduction

Increased

market accsess

0,7

0,6

0,5

Analysis of Effect Socio-economic Factors on Integrated Farming System based on Paddy Rice and Regional Development in Parlilitan

District Humbang Hasundutan Regency

increase farmers' education to accelerate the adoption

of technologies eg; with a field school.

Education for farmers is very important to

improve the knowledge and personality of the farmers

themselves. Farmers who have higher levels of

education will more easily even adopt technological

change.

The results of Diwyanto & Priyanti (2005)

revealed the same thing that states that besides agro-

ecological conditions, community culture becomes an

important consideration in determining the types of

commodities grown in an integrated farming system.

In addition, social capital factors significantly

contribute to farmer perceptions of integrated farming

systems. This finding is supported by research by

Dewi, Utama, and Yuliarmi (2017) which shows that

social capital has a positive and significant effect on

farm productivity and the success of integrated

farming system in Klungkung Regency.

Based on the results of data analysis as in Figure

1, shows that; social capital, farm experience,

business capital, input prices and output prices are

also predictors of socio-economic factors that

contribute to farmers' perceptions of integrated

farming systems in Parlilitan District and a

statistically significant with the standard regression

weights (p) indicator, p <0.01.

The results of this study are in line with the

research (Aryana, et al, 2016) which states that the

higher the level of peasant experience, the easier it

will be to increase production to achieve maximum

profit. This study is in accordance with the Sanjaya

(2013) study, which states that one of the main

indicators of the perfection of farmer-breeder quality

variables is the experience of farming that affects the

cattle breeding business, the application of food

crops, and the application of cattle waste processing

business.

Similarly, research conducted by Iski, et al

(2015), which conveyed that the capital of good

business sourced from credit significantly influence

on increasing production and income of coffee

farmers in Aceh regency. The addition of a good

amount of capital in the form of credit will increase

the use of coffee and coffee production labor.

Increased production will directly increase the

income of organic arabica coffee farmers in Central

Aceh District.

The result of Kasiyati research (2010), conveyed

that the policy of subsidized fertilizer price by

government so that the price of input of affordable

fertilizer production, causing sector in economy in

Jawa Tengah can increase its output.

4.2 The Effect of Socio-economic

Factors on Regional Development

Based on the results of data analysis as presented in

Figure 2, shows that; social capital, farm experience,

venture capital, input prices and output prices are also

predictors of socio-economic factors that contribute

to farmer perceptions of regional development in

Parlilitan District, a statistically significant with

standard regression weight (p) of each indicator, p <

0.01.

The result of this research is in line with research

of Purnami and Saskara (2016) which conveys that

the variables of regional development seen from

economic growth through education variables

participate in the implementation of development

oriented on the distribution of people's income. Even

the results of this study indicate that the agricultural

sector has a positive and significant impact on

economic growth, so it is expected that local

governments through the regional regulation can

protect the sustainability of land and limit the wise

land transfer of land for agricultural business is

maintained.

Research Lubis (2014) stated that the level of

labor education in the positive and significant impact

on economic growth that describes the development

of a region. This indicates the importance of

education in increasing labor productivity.

From the data analysis, extension factor is

important in increasing the experience of farmers

which is one of the predictors of socio-economic

factors contributing to the development of the region

in District of Parlilitan. These results are in

accordance with the statement Mangkuprawira

(2010) that agricultural extension through the process

of assistance is needed in the development of the

region because it has a function as a tool of problem

analysis as well as problem solving.

In the long term, counseling aims to improve

farmers 'standard of living so that the welfare of

farmers' lives is guaranteed. This is in line with the

statement of Van den Ban (1999) that the

government's goal of agricultural extension is to

increase food production, stimulate economic

growth, improve the welfare of farm families and

villagers, and promote sustainable agriculture.

The development of the region as a planned social

change can not only be explained quantitatively by

economic or environmental approach, but there are

socio-cultural aspects that also influence people's

understanding in exploiting the opportunities that

exist. This is in line with Sultani (2016) stated that

regional development should be raised internally by

ICEST 2018 - 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and

Technology

recognizing and involving local wisdom. The close

relationship between culture and the environment is

very clear to the people of Humbang Hasundutan

Regency. They have a spiritual, cultural, social and

economic relationship with their traditional territory

in the form of customary laws, traditions and

practices that describe the bondage of land and the

responsibility to preserve the traditional territory for

the needs of the next generation.

One important element in the successful

achievement of regional development, especially

rural areas to support agricultural development is

social capital. Sultani (2016) states that the

development of the region by incorporating social

capital in every development activity can foster a

sense of responsibility in each individual towards the

implementation of development in all fields. In

addition, with regard to social capital in the context

of regional development, Sunarsih et al. (2014)

argues that social capital rooted in tradition, which

includes socialization and regeneration in agriculture

plays a role in maintaining the relationship between

man and man, man with nature, and man with its

creator in the community because of its inward

nature.

4.3 The Effect of Socio-economic

Factors on Regional Development

through Integrated Farming

System

The result of data analysis as shown in Figure 3,

although the increase is done on the predictors of the

internal condition of agriculture which is also the

determinant factor of the success of integrated

agriculture system, did not significantly increase the

development of the region.

The results of data analysis show that the increase

in socio-economic factor predictors is the dominant

factor determining the success of integrated

agriculture system will be able to increase the

development of the region. Farmer education, farmer

experience, venture capital are predictors of socio-

economic factors an important role in eradicating

rural poverty where the extent of extension success is

closely linked to increased productivity and increased

incomes in the agricultural sector itself.

Social capital variable its contribute to regional

development in Parlilitan District , farmers generally

have a low quality of social capital resulting in

minimal access to information such as information on

the quality of agricultural produce required. Coupled

with the lack of information provided by the

entrepreneurs to the commodities they plant, thus also

affecting the resulting agricultural products. In this

case, what the farmers need is the ease of the market.

The farmers suffered a lot because of being controlled

by middlemen. This is as a result of market access and

low output prices so that the market is monopolized

by the action of the middlemen.

On the other hand, the adoption of new knowledge

or technology in agriculture is often influenced by

socio-cultural issues. Changing a habit always takes

time and special effort to do it. In addition, the main

obstacles of farmers in Humbang Hasundutan

Regency in developing their business are limited

capital and lack of access to capital resources.

As income increases, economic growth will also

increase. Simatupang et al. (2000) stated that the

achievement of the development goals of success

should be measured by two levels, namely the level

and stability of growth. High growth is a requirement

of necessity, while steady stability is a requirement of

adequacy, show that result of research of Purnami and

Saskara (2016) convey that education variable and

contribution variable of agricultural sector have

positive and significant influence to economic growth

of regency/city in Bali Province.

5 CONCLUSION

Based on the results of data processing and discussion

can be concluded;

1. Socio-economic factors such as; level of

education, social capital, farming experience,

venture capital, input price, output price have

positive and significant effect to integrated

farming system based on paddy rice in Parlilitan

District with path coefficient value 0,54 with CR

value 5,487> 1,96 and p (***) <0.01.

2. Socio-economic factors such as; level of

education, social capital, farming experience,

venture capital, input price, output price have

positive and significant effect to the regional

development with path coefficient value 0,64 with

CR 4,4614> 1,96 and p (***) <0.01.

3. Socio-economic factors such as; social capital,

farm experience, venture capital, input prices and

output prices are also predictors of socio-

economic factors that contribute to farmer

perceptions of regional development in Parlilitan

District and a statistically significant with

standard regression weight (p) of each indicator, p

< 0.01.

4. The direct effect of socio-economic factors to the

regional development in Parlilitan District is 0.64

and the indirect effect of socio-economic factors

Analysis of Effect Socio-economic Factors on Integrated Farming System based on Paddy Rice and Regional Development in Parlilitan

District Humbang Hasundutan Regency

to the regional development of through the

integrated farming systems based on paddy rice is

0.34 and the total effect of socio-economic factors

on regional development is 0.87, so that the socio-

economic factors of farmers have a positive and

significant impact on the regional development in

Parlilitan District through integrated farming

system.

5. Increasing socio-economic factor predictors is the

dominant factor determining the success of an

integrated farming system will be able to increase

regional development. Variable farmer education,

farmer experience, business capital are predictors

of socio-economic factors an important role in

eradicating rural poverty as one indicator of

regional development.

ACKNOWLEDGEMENTS

Acknowledgments are submitted to Lembaga Dana

Dana Pendidikan (LPDP) Kementerian Keuangan

Republik Indonesia, which has support finance the

implementation of this research, 2016-2017.

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