The Influence of Farmer Groups, the Role of Cooperatives, and Derivative Products on the Income of Farmers (A Survey on Smallholder Oil Palm Farmers)

This research examined the influence of farmer groups, the role of cooperatives, and derivative products on the income of farmers of palm oil in East Aceh Regency. There were 100 oil palm smallholders appointed to represent all oil palm smallholders in East Aceh Regency using convenience sampling. The data were collected using questionnaires distributed by research assistants. The question items were based on the indicators of each variable and analyzed using multiple linear regression. The results indicated that farmer groups significantly and positively affected the income of farmers. The role of cooperatives and derivative products had no significant effect on the income of farmers. The results provide theoretical implications about the substantial roles of farmer groups formed based on adjacent plots of land in increasing the income of oil palm farmers. Oil palm smallholders need to build local community cohesion, values, and principles of togetherness among farmer members, between cooperatives and cooperative members to realize higher welfare for oil palm smallholders.