Management of Agricultural Irrigation

and Non-Farm Economic Activities in Rural Areas

Preliminary Studies

Rustinsyah

Department of Anthropology, Universitas Airlangga, Surabaya, Indonesia

Keywords: Agricultural Irrigation, Management, Non-farm Activities, Rural Areas

Abstract: Most rural inhabitants rely on their livelihoods in the agricultural sector. One of the success factors of farming

is the availability of water for agriculture. Generally, water for agricultural irrigation in Bengawan Solo river

basin is managed by HIPPA-Himpunan Petani Pemakai Air or Water User Association with pompanisation.

However, there are HIPPA who cannot manage irrigation in agriculture due to limited capital. Therefore, the

water management in this village is taken on by businessmen. One of the successful impacts of managing

agricultural irrigation and farming in the village is the emergence of non-agricultural economic activities in

rural areas. For that purpose, the research was conducted in 2017-2018 with a qualitative approach concerning

the impact of an agricultural irrigation management system and rural non-farm activities. The results

concluded that the impact of success in managing agricultural irrigation and farming is that it provides

opportunities for non-farming activities in rural areas. Non-farm activities in rural areas are directly or

indirectly related to agricultural activities.

1 INTRODUCTION

According to BPS (2017), the percentage of poor

people in rural areas is higher than in urban areas. In

March 2017, the urban poor population was 7.72

percent, down to 7.26 percent in September 2017. The

percentage of poor people in rural areas in March

2017 amounted to 13.93 percent and decreased to

13.47 percent in September 2017. There are various

government programs intended to reduce poverty in

rural areas. One of the development programs is to

revitalise the agricultural sector. In sub-Saharan

Africa, agriculture remains a centre of income and

employment, making up around 34 percent of GDP

and around 64 percent of the workforce (Jack, 2013).

The study states that agricultural growth alleviates

African poverty (Diao, James & Fan, 2012). In

addition, Diao stated that an increase of one percent

in agricultural growth can reduce the number of poor

people living on less than US $1 per day by 0.6 to 2

percent, and that no other activity produces the same

benefits for the poor.

Similarly, one of the governments programs is to

revitalise agriculture by providing adequate

agricultural irrigation. For this reason, the

government made a policy outlined in the Ministerial

Regulation concerning community involvement in

managing agricultural irrigation, one of which is

called HIPPA-Himpunan Petani Pemakai Air or

Water User Association (WUAs). For example, the

Regulation of the Minister of Agriculture with No.79

/ Permentan / OT.140 / 12/2012. The provincial and

district governments have made regulations based on

the above rules related to the destruction and

empowerment of these organisations. This is like

when the provincial government of East Java made

Regulation Number 3 in 2009 concerning agricultural

irrigation in the area. In implementing agricultural

irrigation management it has varied. For example,

there are WUAs whose management is a part of the

relevant village government, but there are also WUAs

that manages agricultural irrigation with the

development of the village head. This is when there

is the management of agricultural irrigation by the

private sector.

Paddy crops in rice fields require sufficient water

from the preparation through to the harvest. For this

reason, the proper management of agricultural

irrigation is needed. The success of managing

agricultural irrigation has an impact on increasing

ride productivity. Increased productivity affects the

Rustinsyah, .

Management of Agricultural Irrigation and Non-Farm Economic Activities in Rural Areas.

DOI: 10.5220/0008817100860090

In Proceedings of the 4th International Conference on Contemporary Social and Political Affairs (ICoCSPA 2018), pages 86-90

ISBN: 978-989-758-393-3

farmers' income and the dynamics of rural economic

activities. One of the dynamics of the rural farmers'

economic activities includes the growth of rural non-

agricultural economic activities. Rural non-farm

activities are directly related to agricultural and non-

direct activities. Non-farming activities in the

countryside can increase the family income and

increase the livelihood portfolio of the rural residents.

Therefore, this paper will describe "What is the link

between success in managing agricultural irrigation

and non-farm activities in rural areas?

2 PROBLEM STATEMENT

In Indonesia, there are many large rivers but

sometimes people are in an area with dry farms

because they cannot use the river water properly. This

can happen even in the rainy season, when floods

occur due to overflowing river water.

However, the good management of agricultural

irrigation in the suburbs of the Sungai Bengawan

river helps to move economic development activities

forward in rural areas. One of the rural economic

activities is non-farm activities. In this paper, we want

to elaborate on non-farm activities in rural areas as a

result of the successful management of agricultural

irrigation.

3 RESEARCH OBJECTIVES

The research objectives are:

 To describe the relationship between the

successful management of agricultural

irrigation and the emergence of non-farm

activities in rural areas.

 To describe the various kinds of non-farm

activities in the villages, especially in

Lamongan and Turban regencies located

around the Valley of Bengawan Solo River.

The findings of this study are important because

of the emergence of rural non-farm activities as part

of the economic dynamics of the countryside. Several

studies have shown that non-farming income as

portfolio helps the farmer to earn a living in rural

areas, as it contributes to the family income and is a

strategy to alleviate rural poverty.

4 DEFINITION OF

MANAGEMENT

AGRICULTURAL IRRIGATION

AND NON-FARM ACTIVITIES

HIPPA—Himpunan Petani Pemakai Air or the Water

Users Association is an agricultural irrigation

management organization that provides guidance in

the implementation of the statutes and bylaws made

by the organizers and the village government that

refers to government regulations. However, each

village is given autonomy to make statutes and

bylaws of its own, and to implement them. However,

there are times when HIPPA gives to private investors

to allow them to manage agricultural irrigation.

Usually in its implementation, there has been

agreement between village government, HIPPA and

investors.

The success of managing agricultural irrigation

affects the dynamics of the physical and non-physical

development in rural areas because 1) there is a rule

in the statutes and bylaws that some income in

managing irrigation is allocated to rural development

and 2) the implementation of the irrigation

management of agriculture raises job opportunities.

One of its impacts on the dynamics of economic

activity includes opening up opportunities for non-

farm economic activities.

According to Colter (1984), non-agricultural

activities consist of activities that discuss strategies to

increase the income outside of agriculture and

services, such as the trading of agricultural products,

running small businesses and other efforts through the

use of resources in farming and environmental

activities. For example, open-air business activities

face risks, the environment, people and others. Non-

agricultural economic activities, trade and services,

directly and indirectly, are related to local agriculture

or small-town economic activities. Ellis (1997)

further argued that livelihood diversification is a

process used by rural families to make a portfolio in

economic activity for survival and to raise their wage

standards. The diversification of livelihood is not

always synonymous with income diversification.

As well as Mukhopadhayay and Lim (1985), non-

farm economic activities are stated to include all

economic activities such as home industries,

agricultural product processing industries, rural

transport, trade, and all activities carried out for

commercial purposes outside of the agricultural

activities carried out in rural areas. 'Non-farm' does

not refer to primary agricultural or forestry or

fisheries activities. Barret and Reardon (2001) put

Management of Agricultural Irrigation and Non-Farm Economic Activities in Rural Areas

pressure on non-farm activities by referring to the

sectoral definitions that occur in primary production,

secondary (manufacturing) production and tertiary

activities such as services.

Some factors that encourage non-farm activities in

rural areas include first, the realisation of the

implementation of integrated policies, such as the use

of technology in agriculture, credit programs for

productive economic enterprises in rural areas and the

implementation of agribusiness programs. Non-farm

activities arise because of the success of dry land

farming and rice cultivation. As an example, there has

been the emergence of traders of horticultural crops

(chilies, vegetables) or of baskets made women in the

village of Kebonrejo (Rustinsyah. 2012). Similarly,

GAPOKTAN - Gabungan Kelompok Tani

(Combined Farmer Group) – have opened

opportunities for commercial farmers not only as a

manufacturer but as they are involved in the

distribution of agricultural products (Rustinsyah.

2012). Second, closeness and the ease of rural-urban

relations is also an attraction to open up non-farm

employment opportunities in rural areas. For

example, the emergence of transportation service

businesses (such as rural transport, motorcycles and

taxis), stalls and rural shops that sell manufactured

goods to meet the needs of the population village.

Third, agricultural modernisation causes increased

agricultural production and stimulates the farmers'

income to allow them to diversify their offered

agriculture (Mellor, 1976). The condition is certainly

followed by changes in household consumption

patterns that ultimately stimulate the growth of

industry and the service of household needs. The

emergence of food stalls, shops that provide daily

necessities, beauty salons in the village, bridesmaids

shops etc are examples. According to Rustinsyah.

(2012), the cause of the emergence of non-farms is

also due to the condition of uncertainty and the

financial weakness of the rural population due to the

uncertainty inherent in farming. This is due to the

climate. The fastest growing non-farm activities are

in the trade and food stalls, which offer a wage that is

greater than that of farm labourers (Haggablade,

Hazell & Brown, 1987). Therefore, non-farm

activities become an important option in order to

increase income and reduce poverty.

Rural non-farm activities can be carried out

jointly with farm activities or during the dry season.

This is like what farmers in Kebonrejo Village do. In

the dry season, the agricultural land in Kebonrejo

supports farming activities such as the trading of

manure, slaughtering animals or trading fruits (petai,

apokat fruit and others). In addition, they also trade at

home such as opening food stalls, selling goods and

daily necessities, the chilli trade that is usually done

by women, and trading in agricultural drugs and

chemical fertilisers (Rustinsyah. 2012). Generally,

farmers with non-farm economic activities are more

dynamic and have more income than farmers who do

not trade.

5 METHODOLOGY

The research was conducted in agricultural villages

with agricultural irrigation management utilising the

water of the Bengawan Solo River. Water

management for agricultural irrigation is carried out

by the private sector and is part of the village

government. Generally, rice production ranges start

from 10 tons per hectare. This has led to the growth

of non-farm economic activities to serve the farm

activities as well as the daily needs of the villagers.

The study was conducted in 2017, using qualitative

approaches and data collection through interviews,

observation and collecting documents related to the

research theme.

All of the data obtained from the interviews,

observations and documents were then classified

according to the research themes in order to answer

the research problem. Furthermore, the data is

interpreted using the non-farm concept as used in this

study.

6 DISCUSSION

Success in managing agriculture can be seen from the

high productivity, up to 10 tons per hectare. This can

overcome problems related to farming such as air

distribution for agriculture, pest management,

implementing programs according to the statutes and

bylaws, being able to build as part of a board, gaining

economic benefits, increasing organisational finance,

providing incentives to stakeholders and provide

insights into rural development.

One of the important impacts of successful

agricultural irrigation management is the emergence

of non-farm employment opportunities in rural areas.

The following are the non-farm activities in villages

that manage agricultural irrigation:

6.1 Trader of Daily Necessities

The success of managing irrigation of paddy fields,

the absorption of labour in the agricultural sector and

ICoCSPA 2018 - International Conference on Contemporary Social and Political Affairs

the income of the agricultural sector causes the cash

to come into circulation in the villages to be larger

and there is an increased ability of purchasing power

for the villagers. This gave rise to the merchants of

daily necessities which provide services to the

villagers. The profits obtained by these traders can

reach Rp 100,000 to Rp 200,000.00. This is as told by

Saroh (36 years old), who opened a shop at home

selling basic necessities every day (rice, sugar, soap,

etc.) and selling traditional herbal medicine brings in

approximately Rp 200.000,00 per day. To carry out

her economic activities, he collaborates with her

husband.

The turnover of the sale of staple goods has

increased because the villagers hold celebrations for

the animals or contribute to celebrations in the form

of rice, sugar and other gifts. The amount of waste

during the celebration ranges from 4 (four) kilograms

of rice. In Kebalanpaleng Village, there are 20

merchants who sell basic necessities everyday by

opening up a stall or a shop at home. The merchants

usually also give credit to their neighbours so then the

merchandise sells smoothly. Staple daily needs loans

usually occur in the famine season when there is a

flood in the rice fields due to the overflow of the

Bengawan Solo River.

6.1.1 Food Traders

The farmers' income from a high agricultural sector

can open up opportunities for food traders in their

villages. The types of food sold varies, namely: a)

those who open up a stall or shop selling dry foods

made by factories or b) a coffee shop that provides

local food. The turnover of the food vendors also

varies. Like Munawaroh (42 years) has opened a food

stall and serves catering for local villagers. To carry

out the work, he is assisted by his two children. The

first child has attended university in Lamongan. The

daily income of the food stall is around Rp.

150,000.00, plus if there are food orders from their

neighbours for celebration purposes.

There is even a shop that provides food and -

drinks like in a cafe in the city. Food prices also vary

from IDR 6000 to IDR 12,000 per package. Even the

turnover is quite large. As the owner of the cafe said,

"On a typical day, the food sales turnover ranges from

Rp. 1,000,000 to Rp. 1,500,000.00. While on

Saturdays and Sundays, the sales turnover can reach

Rp. 3,000,000.00.

Income as a food trader fluctuates from time to

time. At the time of the harvest season and when there

is a high productivity of rice, then the turnover of food

sales can increase. However, in the case of harvest

failure due to floods, pests or disease, then the

turnover of the food traders may decrease.

6.1.2 Others

There are other non-farm economic activities that

have become the livelihood portfolios of the villagers.

First, the business of the transportation of four-

wheeled vehicles is carried out by rich farmers. They

rent out avanza cars and car carriers like small

vehicles. For motor vehicle services, business is not

done much because generally, villagers have their

own motor vehicles. Secondly, unskilled labourers

such as construction workers clean the irrigation

networks. Labour to clean the irrigation networks is

usually done after flooding. Irrigation networks are

usually covered with mud and waste due to flooding,

so it then needs to be cleaned so then the distribution

of water becomes smooth again. The HIPPA budget

to clean up irrigation networks is big enough.

Building workers (carpenters, masons) get job

opportunities in the village. Usually they build houses

if they benefit from the harvest.

Third, the success of farming will certainly

increase the income of the rural residents so then they

have the ability to buy. The ability of the village

community becomes an attraction for outside

villagers to peddle in the village. For example, there

are the traders of meatballs, vegetables, and

traditional herbs and fruit trees peddled in the village.

They, on average, have been selling in the village for

more than five years. This shows that the economic

condition in the village is quite good.

7 CONCLUSIONS

The success of managing agricultural irrigation has an

impact on rice productivity. The high productivity of

the paddies in the village has an impact on the income

of the villagers, resulting in non-farm activities

created to serve the villagers and agricultural

activities. Rural non-farm employment opportunities

will drive rural economic activity. Some previous

studies such as Rustinsyah (2012) mention that

agricultural modernisation and increased agricultural

production leads to the diversification of jobs to serve

the needs of rural households. Similarly, non-farm

income is stable and higher than that of the

agricultural sector.

Efforts undertaken to increase agricultural

production needs to be done both from facilities, and

it needs to include infrastructure and intensification to

increase the income of the villagers.

Management of Agricultural Irrigation and Non-Farm Economic Activities in Rural Areas

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ICoCSPA 2018 - International Conference on Contemporary Social and Political Affairs