Economic Impact of Land Use Change on Rice Paddy Farmers in Palembang City Indonesia

Abstract

Agricultural land conversion has the potential to have complex economic impacts on communities and related sectors. This change can alter income patterns and cause a decrease in welfare for farmers and business actors related to agriculture. This study aims to analyze the economic impact of land conversion on rice farmers in lebak rice fields in Palembang City. The research location was purposively chosen, by taking a sample of 250 respondents who were divided into two, namely farmers who changed land use and those who did not change land use. Economic impact analysis is looking at farmers' income before and after land conversion in the last 5 years interval, 2019-2023. The results showed that there was a difference in farmers' rice farming income before and after land conversion obtaining a tcount value of -5,450, significant at the 0.01 confidence level (0.000 <0.01). The economic impact of land conversion on rice farmers is in the form of a decrease in rice farming income.