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ABSTRACT:

The farmer exchange rate is a comparative value between the price index received by farmers and the index paid by farmers. In this context, it is necessary to develop indicators that can accurately measure the purchasing power of farmers, who represent a significant proportion of the agricultural sector. The objective of this study is to analyze and determine the effect of rice productivity, food crop subsector GRDP, and inflation on the exchange rate of food crop farmers in Indonesia. This type of research is a quantitative research study. The data for this study were obtained from the Central Bureau of Statistics, which provided secondary data. The data utilized in this study are comprised of data on the exchange rate of food crop farmers, rice productivity, food crop subsector GRDP, and inflation for the years 2020-2022. The data analysis employed panel data linear regression analysis. The results indicated that rice productivity exerted a negative and insignificant influence on the exchange rate of food crop farmers in Indonesia. Conversely, the GRDP of the food crop subsector and inflation exhibited a negative and significant effect on the exchange rate of food crop farmers in Indonesia.

KEYWORDS:

Farmer's Exchange Rate, Rice Productivity, GRDP of Food Crops Subsector, Inflation

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