Role of farmers' economic institution in supporting rural economics development

ABSTRACT

Farmers' economic institutions have a very important role in the development of agribusiness, both as a system and as a business. Increasing the competitiveness of agricultural products in the midst of global market competition can be realized through a strategy of transforming farmer institutions towards reliable farmer economic institutions, agricultural businesses can be managed efficiently with professional human resources and support for conducive government policies, which are expected to produce agricultural and livestock products that are capable of producing high quality agricultural products, create added value and strong competitiveness, both in domestic and global markets, develop plans for the future so that the farmers' economy can improve, as well as look for leverage points that can encourage or trigger farmers' welfare. Increased absorption of labor in rural areas encourages other businesses related to agribusiness and the provision of infrastructure to support economic progress in the community. Institutional support for farmer groups that have been developed is more oriented to agricultural businesses, to produce products and strengthen community economic networks based on local resources. The agricultural sector during the Covid-19 pandemic can actually be used as a strategy for recovery and at the same time provides the basis for the development of the real sector of economic progress. Strengthening the economy of farmers can be pursued through support for strengthening farmer institutions, guidance, counseling, capital assistance, agricultural facilities, availability and access to input and output markets, as well as policy support and facilitation of central and regional governments.