Economic valuation of rice agricultural land in Bogor regency

Abstract

This study aims to calculate the total economic value of lowland rice farming in Bogor Regency, and identify the factors that influence land conversion from agricultural to non-agricultural uses. By using the productivity method approach, CVM and benefit transfer, it can be seen that the total economic value of lowland rice farming in Bogor Regency, West Java is Rp. 119,480,139 / hectare / year. The new economic value is calculated based on functions as a food producer, as a function of absorbing labor, as a function of food security stability, and as a function of flood mitigation, not yet included as a function of erosion and sedimentation mitigation, as a function of air conditioning and freshener, as a function of carbon retarding, as a function of recycling organic waste, as well as a function of social culture and rural appeal. Then by using descriptive statistical analysis and simple regression, it is known that the conversion of paddy farming land in Bogor Regency, is influenced by internal factors, external factors, and government policies. Internal factors include: the geographical location of agricultural land, the area of agricultural land owned by farmers, the amount of farmers’ income, transformation of farmers’ economic structure, and farmers’ understanding of multifunctional agriculture. External factors include: population growth, urbanization, the macroeconomic situation, the ability of agricultural land, the value of land (land prices), the opportunity to buy land elsewhere which is cheaper, and the influence of the private sector. Government policy is the factor that is considered to have the greatest influence on the occurrence of agricultural land conversion in Bogor Regency, especially the problem of the implementation of government policies relating to rules regarding conversion of agricultural land that have not been implemented optimally.

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