BUILD PATTERN THINK OF THE FUTURE FARMERS AND FISHERMAN
By: Prof. Dr. Ir. M. Amin Aziz *)
Ir. Asrul Masir Harahap **)
It is inevitable that farmers and fishermen still form the majority of Indonesia's population therefore remains to be the main target of the national development program. On the other hand farmers and fishermen because of the number and the potential it should provide a greater contribution to national development. Phenomena and issues surrounding the lives of farmers-fishermen lately, showing that the world is full of farmers and fishermen dynamic and constantly changing according to the demands and challenges of the times, and this is closely related to farmers think the pattern- fishermen themselves. The most common phenomenon of life of farmers-fishermen are generally their welfare level, both individually and communally, is still relatively low when compared with other individuals or groups of people, and it is a challenge for development. Portrait of the fishing village in general is a picture of poverty and squalor. While the common problems faced by them is the low productivity and incomes, caused by internal factors such as their own land increasingly marginalized, education, mastery and other technologies, as well as external factors such as marketing, financing etc..
In North Sumatra, farmers and fishermen in the constellation of regional autonomy is a local development actors is very important considering the amount of their 53.73% of the population of North Sumatra (CBS, 1999). Their contribution to local development is realized through its role in the provision of good results and industrial food production as well as in the role of the consumer products industry. Development efforts in increasing the production of North Sumatra regional and local revenue, as well as should be aimed at increasing the productivity and income of farmers-fishermen. Considerable revenue, will allow them and their families get a good education and nutritious foods that will further increase productivity, something which is indispensable in improving the competitiveness of farmers-fishermen themselves.
Increased productivity and income of farmers-fishermen by the Government through programs of intensification, diversification, and the rehabilitation and improvement of the added value of the products produced. Various policies have been issued to encourage programs such as cheap credit, construction and repair of irrigation facilities, the provision of the means of production level, production and others. These programs are essentially subsidized, which means the diversion of national resources that can be used for the development of other sectors of the farmer-fisherman. Therefore, lack of success of such programs is not only detrimental to farmers-fishermen but also detrimental to the society.
For farmers-fishermen, the subsidized program is a great opportunity, which might seem expensive at the time to come. At the time even this subsidy was greatly reduced. Interest loans to farms is increasing, irrigation water must pay, reduced fertilizer subsidies and others. Farmer-fisherman faced with new challenges that need a new mindset to deal with it anyway.
Subsistence and Commercial Farmers-Fishermen
Based on their pattern think, farmers-fishermen are divided into subsistence and commercial. Among the two types of farmers-fishermen, there are intermediate types, namely farmers-fishermen who are at an intermediate stage from subsistence to commercial.
The worldview of these two groups of farmers-fishermen is very different to the farming unit. Subsistence farmers-fishermen see farming as a production unit that will produce food for their own needs and their families daily, while commercial fishermen-farmers see farming as a business unit business unit, which should bring the highest benefit, not only to meet the needs of food supply but also other needs such as education, recreation and further investment. If subsistence farmers-fishermen do not much consider factors beyond himself, then vice versa-peasant commercial fishermen always pay attention and act to respond to the changes that occur, because the rate of profit is determined by the farming changes there.
Subsistence farmers-fishermen do not require big capital, so it is quite full of previous efforts, while commercial fishermen-farmers needed considerable capital for his business continues to grow not only in the production but also on rental equipment and processing and marketing results.
Agencies to support activities such as farmer-fishermen and marketing credit institutions not so necessary to the subsistence farmers, while the farmers-commercial fishermen, these institutions is necessary because the existence of these institutions without the position of farmers in the field of marketing will be weak result in a lower sales price. Credit institutions needed except as a source of finance for farming is also required to store the surplus obtained.
Changes of Pattern Think of Farmer-Fisherman
Research on the changing patterns of Sumatra think the farmers-fishermen have done well instituted research institutes and universities, but some of the data in other areas of research can indirectly provide an indicator of the occurrence of a change of thought pattern farmer-fisherman since development programs run.
Indicators of change in the mindset of farmers-fishermen; First, changes in the use of quality seeds and fertilizers. The use of high yielding rice varieties in Indonesia began in 1968. Previously, farmers grow local varieties and superior national (Sigadis, Teens, Jelita, Dewi Dara, Shinta, and Bengawan). The use of new varieties PB / IR extends from year to year. If in the year 1970/1971 the use of varieties PB / IR only around 25% of the year 1980/1981 until now has been almost 100%.Along with the use of superior seeds, fertilizer usage rate also increased. Changes over the past 10 years (1970/1971 to 1980/1981) use of fertilizer has increased by about 145%. It's just because of the high price of fertilizer lately resulted in the use of manure as a major factor of production tends to decline because no / less comparable with the results achieved farming.
Second, changes in the use of agricultural equipment / fishing. Change of use of agricultural tools, found in both agricultural crops and on fisheries. At sea fishing companies, the use of outboard motors up about 20% per year, and a boat ride of about 10% per year. The increase was higher than the increase in boats without motors only increased 1% per year. Change of use of agricultural equipment in food crops can be demonstrated by the increasing use of agricultural equipment such as tractors, Hand Sprayer and Rice Thresher. The use of tractors, up about 15% per year, Hand sprayer up about 15% per year and the Rice Thresher up about 20% / year. Transitional use of agricultural equipment is based on rational thinking to increase profits. As a pretty good illustration is the use of tractors for land preparation. In cultivation, a shift in the use of human and animal power with tractors. This shift occurred because of an increase in real wages for both human and animal power. In addition to less use of tractors is also faster. In one study villages, processing by using tractors per hectare until ready to plant requires 22 hours of work, the animals 73 hours, with 206 hours of human labor.Costs incurred for cultivation per hectare in the growing season in 2000/2001 was Rp 250,000, - if using tractors, Rp 300,000, - with livestock and Rp 290,000, - if with human power.
Third, changes in the use of credit capital. The development of the use of credit can be seen from the increase in the amount of credit that is given by the Credit institutions operating in rural areas, such as Bank Village, Village Office and the State Pawnshop. Depth average growth of credit that is given by the Bank village is about 7%, about 54% Village Office and the State Pawnshop about 12%. These figures show that rural communities have needed capital to run its business loans.However, this growth is still relatively small when compared with the growth of the urban sector lending such as industry and trade which grew approximately 35% and 25% in the same period. Credit growth to the village barn big enough, but judging the volume of loan is small so it is not a measure to assess the development of rural credit. Lending data showed no growth Bimas even number of farmers to the debtor. In 1970/1971 the number of borrowers 1.3 million while in the year 1980/1981 the number of borrowers 1.1 million farmers, although its value is increased from 8.5 billion to 35.9 billion dollars. While the failure and breakdown of KUT program for agriculture that is often talked about these days due to many factors besides mismanagement and misappropriation, as well as technically agriculture in general to enjoy the harvest takes quite a long time, which is a minimum of three months. Furthermore, because of the capital requirements are also the government launched a capital assistance program for farmers such as Credit Food Security (CTF).
Fourth, institutional development. The institutions established by farmers to meet the requirement is farmer groups, cooperatives and Village Office. Farmer group is a forum to enhance knowledge and skills of technical, economic and KUD for container barn rural credit institutions that serve a loan in the form of rice or money on rural communities. The number of Village Office was only growing at about 0.5%. Maybe there is a presumption that a small growth is due to its role has been replaced by other institutions, but if the data is associated with the role of cooperatives that have not been so evident in the middle of the village, indicating that farmers are still experiencing difficulties in developing institutions.
Challenges Facing Future Farmers-Fishermen
Some of the challenges faced by farmers in the future, both from Government Policy Changes, Changes in consumer tastes, as well as the development of the population are: First, the rise in mortgage interest. Mortgage interest for farm loans has been increased from 12% per annum to 17% per year. This hike will increase the cost of farming. The increase in loans to large investment, it inhibits investment in agriculture and agro-industry.
Second, the rising price of fertilizer and water user fees. As with any loan, subsidy on fertilizer and irrigation water use will also likely be reduced because of the greater subsidies will further the government's financial burden, especially when the government has an agreement with the IMF to reduce and stop all forms of subsidies. Imposition of water fee to the farmer is the responsibility of the government delegation to the farmers. Thus the water is no longer a factor that can be obtained for free, but a factor that must be paid and should be efficient to use.
Third, the narrowness of the land. High population growth, leading to ownership of land per family increasingly narrow further result in the narrowing of manufacturing sector employment. The narrowness of employment opportunities is also because of the increasing pressure on sensitive role of farm laborers labor by mechanical force.
Fourth, the low prices of agricultural commodities. The low production due to farmers not good means of transport and the magnitude of the price margin. The bigger margin means the greater part of the price received by the merchant (and other trading system charges) of the price paid by the consumer for the product. It also shows the amount of margin weak position of farmers in the transaction and or the determination of prices by the government. The low prices then led to exchange of agricultural products to industrial goods declined, which means a relatively lower opinion of farmers.
Fifth, the existence of competition from imported products. As a consequence of the inclusion of Indonesia to the market globally, for the export of agricultural products and the industry, we also have to open up the domestic market to the entry of agricultural products. Thus the products farmers have to compete with imported products both for the domestic market and abroad.
Sixth, the quality demands of consumers. The increasing standard of living raises that increased demand for agricultural product quality / fisheries. Urban Consumers, especially community groups are able want products that clean, and free of disease. Similarly for export to the market entry, there are quality standards that must be fulfilled.
Pattern Think of Farmers-Fisherman in the Future
By: Prof. Dr. Ir. M. Amin Aziz *)
Ir. Asrul Masir Harahap **)
It is inevitable that farmers and fishermen still form the majority of Indonesia's population therefore remains to be the main target of the national development program. On the other hand farmers and fishermen because of the number and the potential it should provide a greater contribution to national development. Phenomena and issues surrounding the lives of farmers-fishermen lately, showing that the world is full of farmers and fishermen dynamic and constantly changing according to the demands and challenges of the times, and this is closely related to farmers think the pattern- fishermen themselves. The most common phenomenon of life of farmers-fishermen are generally their welfare level, both individually and communally, is still relatively low when compared with other individuals or groups of people, and it is a challenge for development. Portrait of the fishing village in general is a picture of poverty and squalor. While the common problems faced by them is the low productivity and incomes, caused by internal factors such as their own land increasingly marginalized, education, mastery and other technologies, as well as external factors such as marketing, financing etc..
In North Sumatra, farmers and fishermen in the constellation of regional autonomy is a local development actors is very important considering the amount of their 53.73% of the population of North Sumatra (CBS, 1999). Their contribution to local development is realized through its role in the provision of good results and industrial food production as well as in the role of the consumer products industry. Development efforts in increasing the production of North Sumatra regional and local revenue, as well as should be aimed at increasing the productivity and income of farmers-fishermen. Considerable revenue, will allow them and their families get a good education and nutritious foods that will further increase productivity, something which is indispensable in improving the competitiveness of farmers-fishermen themselves.
Increased productivity and income of farmers-fishermen by the Government through programs of intensification, diversification, and the rehabilitation and improvement of the added value of the products produced. Various policies have been issued to encourage programs such as cheap credit, construction and repair of irrigation facilities, the provision of the means of production level, production and others. These programs are essentially subsidized, which means the diversion of national resources that can be used for the development of other sectors of the farmer-fisherman. Therefore, lack of success of such programs is not only detrimental to farmers-fishermen but also detrimental to the society.
For farmers-fishermen, the subsidized program is a great opportunity, which might seem expensive at the time to come. At the time even this subsidy was greatly reduced. Interest loans to farms is increasing, irrigation water must pay, reduced fertilizer subsidies and others. Farmer-fisherman faced with new challenges that need a new mindset to deal with it anyway.
Subsistence and Commercial Farmers-Fishermen
Based on their pattern think, farmers-fishermen are divided into subsistence and commercial. Among the two types of farmers-fishermen, there are intermediate types, namely farmers-fishermen who are at an intermediate stage from subsistence to commercial.
The worldview of these two groups of farmers-fishermen is very different to the farming unit. Subsistence farmers-fishermen see farming as a production unit that will produce food for their own needs and their families daily, while commercial fishermen-farmers see farming as a business unit business unit, which should bring the highest benefit, not only to meet the needs of food supply but also other needs such as education, recreation and further investment. If subsistence farmers-fishermen do not much consider factors beyond himself, then vice versa-peasant commercial fishermen always pay attention and act to respond to the changes that occur, because the rate of profit is determined by the farming changes there.
Subsistence farmers-fishermen do not require big capital, so it is quite full of previous efforts, while commercial fishermen-farmers needed considerable capital for his business continues to grow not only in the production but also on rental equipment and processing and marketing results.
Agencies to support activities such as farmer-fishermen and marketing credit institutions not so necessary to the subsistence farmers, while the farmers-commercial fishermen, these institutions is necessary because the existence of these institutions without the position of farmers in the field of marketing will be weak result in a lower sales price. Credit institutions needed except as a source of finance for farming is also required to store the surplus obtained.
Changes of Pattern Think of Farmer-Fisherman
Research on the changing patterns of Sumatra think the farmers-fishermen have done well instituted research institutes and universities, but some of the data in other areas of research can indirectly provide an indicator of the occurrence of a change of thought pattern farmer-fisherman since development programs run.
Indicators of change in the mindset of farmers-fishermen; First, changes in the use of quality seeds and fertilizers. The use of high yielding rice varieties in Indonesia began in 1968. Previously, farmers grow local varieties and superior national (Sigadis, Teens, Jelita, Dewi Dara, Shinta, and Bengawan). The use of new varieties PB / IR extends from year to year. If in the year 1970/1971 the use of varieties PB / IR only around 25% of the year 1980/1981 until now has been almost 100%.Along with the use of superior seeds, fertilizer usage rate also increased. Changes over the past 10 years (1970/1971 to 1980/1981) use of fertilizer has increased by about 145%. It's just because of the high price of fertilizer lately resulted in the use of manure as a major factor of production tends to decline because no / less comparable with the results achieved farming.
Second, changes in the use of agricultural equipment / fishing. Change of use of agricultural tools, found in both agricultural crops and on fisheries. At sea fishing companies, the use of outboard motors up about 20% per year, and a boat ride of about 10% per year. The increase was higher than the increase in boats without motors only increased 1% per year. Change of use of agricultural equipment in food crops can be demonstrated by the increasing use of agricultural equipment such as tractors, Hand Sprayer and Rice Thresher. The use of tractors, up about 15% per year, Hand sprayer up about 15% per year and the Rice Thresher up about 20% / year. Transitional use of agricultural equipment is based on rational thinking to increase profits. As a pretty good illustration is the use of tractors for land preparation. In cultivation, a shift in the use of human and animal power with tractors. This shift occurred because of an increase in real wages for both human and animal power. In addition to less use of tractors is also faster. In one study villages, processing by using tractors per hectare until ready to plant requires 22 hours of work, the animals 73 hours, with 206 hours of human labor.Costs incurred for cultivation per hectare in the growing season in 2000/2001 was Rp 250,000, - if using tractors, Rp 300,000, - with livestock and Rp 290,000, - if with human power.
Third, changes in the use of credit capital. The development of the use of credit can be seen from the increase in the amount of credit that is given by the Credit institutions operating in rural areas, such as Bank Village, Village Office and the State Pawnshop. Depth average growth of credit that is given by the Bank village is about 7%, about 54% Village Office and the State Pawnshop about 12%. These figures show that rural communities have needed capital to run its business loans.However, this growth is still relatively small when compared with the growth of the urban sector lending such as industry and trade which grew approximately 35% and 25% in the same period. Credit growth to the village barn big enough, but judging the volume of loan is small so it is not a measure to assess the development of rural credit. Lending data showed no growth Bimas even number of farmers to the debtor. In 1970/1971 the number of borrowers 1.3 million while in the year 1980/1981 the number of borrowers 1.1 million farmers, although its value is increased from 8.5 billion to 35.9 billion dollars. While the failure and breakdown of KUT program for agriculture that is often talked about these days due to many factors besides mismanagement and misappropriation, as well as technically agriculture in general to enjoy the harvest takes quite a long time, which is a minimum of three months. Furthermore, because of the capital requirements are also the government launched a capital assistance program for farmers such as Credit Food Security (CTF).
Fourth, institutional development. The institutions established by farmers to meet the requirement is farmer groups, cooperatives and Village Office. Farmer group is a forum to enhance knowledge and skills of technical, economic and KUD for container barn rural credit institutions that serve a loan in the form of rice or money on rural communities. The number of Village Office was only growing at about 0.5%. Maybe there is a presumption that a small growth is due to its role has been replaced by other institutions, but if the data is associated with the role of cooperatives that have not been so evident in the middle of the village, indicating that farmers are still experiencing difficulties in developing institutions.
Challenges Facing Future Farmers-Fishermen
Some of the challenges faced by farmers in the future, both from Government Policy Changes, Changes in consumer tastes, as well as the development of the population are: First, the rise in mortgage interest. Mortgage interest for farm loans has been increased from 12% per annum to 17% per year. This hike will increase the cost of farming. The increase in loans to large investment, it inhibits investment in agriculture and agro-industry.
Second, the rising price of fertilizer and water user fees. As with any loan, subsidy on fertilizer and irrigation water use will also likely be reduced because of the greater subsidies will further the government's financial burden, especially when the government has an agreement with the IMF to reduce and stop all forms of subsidies. Imposition of water fee to the farmer is the responsibility of the government delegation to the farmers. Thus the water is no longer a factor that can be obtained for free, but a factor that must be paid and should be efficient to use.
Third, the narrowness of the land. High population growth, leading to ownership of land per family increasingly narrow further result in the narrowing of manufacturing sector employment. The narrowness of employment opportunities is also because of the increasing pressure on sensitive role of farm laborers labor by mechanical force.
Fourth, the low prices of agricultural commodities. The low production due to farmers not good means of transport and the magnitude of the price margin. The bigger margin means the greater part of the price received by the merchant (and other trading system charges) of the price paid by the consumer for the product. It also shows the amount of margin weak position of farmers in the transaction and or the determination of prices by the government. The low prices then led to exchange of agricultural products to industrial goods declined, which means a relatively lower opinion of farmers.
Fifth, the existence of competition from imported products. As a consequence of the inclusion of Indonesia to the market globally, for the export of agricultural products and the industry, we also have to open up the domestic market to the entry of agricultural products. Thus the products farmers have to compete with imported products both for the domestic market and abroad.
Sixth, the quality demands of consumers. The increasing standard of living raises that increased demand for agricultural product quality / fisheries. Urban Consumers, especially community groups are able want products that clean, and free of disease. Similarly for export to the market entry, there are quality standards that must be fulfilled.
Pattern Think of Farmers-Fisherman in the Future
Change of mindset you need to do is to answer the challenges faced by farmers-fishermen in the future. The change seems to have occurred, as evidenced by the adoption of new technologies and tools wearing agriculture / fisheries are more modern in their business activities. However, the institutional development of farmer-fishermen still seems satisfactory, but the challenges of the future problems to be answered by the farmers-fishermen together in a strong institutional.
Mindset of farmers-fishermen should be more integral in view of its business are closely associated with the processing and marketing as many challenges to be faced by the farmers-fishermen in terms of marketing.While the challenges of increasingly high price of inputs for various subsidies revoked can be overcome by the selection of the most valuable commodities.
Thus the mindset required to contain the following elements: First, efficient in the use of production inputs.Production inputs such as land, fertilizer, medicines, equipment, capital and value water more expensive, so the input should be used efficiently, which means using the same input must produce the highest value.Sensitivity to input prices and products are very important because these prices will be directly related to the profits generated. Rational attitude and apply new technologies that have been shown previously, need to be sharpened with a sensitivity to price.
Second, the market-oriented production / consumer. In the commodities that will be sold in part or in full, the farmer-fisherman should really pay attention to taste and quality desired by consumers. Thus, the product will be sold and farmers-fishermen get higher prices, thus higher profits anyway.
Third, create added value. Mindset that needs to change is the idea that the activities of farmer-fisherman is in the area of production. The narrowness of employment in the production sector must be offset by the creation of new jobs in the industrial sector especially rural industries that process agricultural production / fisheries.
Fourth, develop institutional. Agriculture / fisheries have common interests in terms of capital, the availability of inputs at the site, input and product prices were reasonable, and marketing. Common interest is more efficient and effective when done together. Institutional firm will also increase the bargaining power (bargaining position) farmer-fisherman.
Fifth, fertilizer savings and investment trust. To develop further business in both industrial production and rural peasant and fishermen need capital or a business partner. Capital and business partners will be acquired by accumulating capital from its surplus and lack of trust. Credit could also just be that the bank has confidence in the business prospects and borrowers.
Epilog
Efforts to improve the welfare of farmers-fishing is an activity that should continue to be done by all parties, especially farmers-fishermen themselves, because the farmers-fisherman is a component of the relatively even the largest in the country. Most important in the overall effort is how the farmers-fishermen pattern think is always constantly changing and evolving in accordance with the challenges it faces.
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*) President Director of Agribusiness Development Center (PPA Consultants), Jakarta-Indonesia
**) Director of PPA Consultants, Jakarta-Indonesia
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