Economic Value of Food Commodities and Labor Shift due to Rice Field Conversion in Batu City, Indonesia

Abstract

Increasing tourist activities in Batu City make agricultural land conversion unavoidable. This research purpose is to discover the lost economic value of food commodities due to converted agricultural land area and labor shift. The conversion area of agricultural land in all areas can be identified through Landsat image 8 ETM+ in 2017 and 2021. An overlay analysis using ArcGIS 10.2 software with seven variables was then utilized to discover land capability and suitability. Then, it was combined with the survey results of 334 land price points to determine the distribution of agricultural land prices in Batu City by using Kriging interpolation analysis. The researcher found that the agricultural land area has decreased in the past four years by 169.96 Ha, with a lost economic value of approximately 5 billion Indonesian rupiahs. The agricultural land price in Batu City is divided into four classifications. The results indicate that the agricultural land price is high, so it accelerates agricultural land conversion. Therefore, the government should pay close attention to land conversion.

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