Effects of Farm Income Diversification and Labor Out-Migration on Rice Household Productivity in Indonesia

This study analyzed the effects of farm income diversification and labor out-migration on rice household productivity in Indonesia, using cross-sectional data from the 2013 Census of Agriculture. Diversification was assessed through crop choices, household heads’ off-farm employment, and regional variation in rice yields. The results indicated that wage income from off-farm work increased household investment in agricultural inputs and improved yields. However, the productivity gains were not sufficient to compensate for the loss of family labor due to out-migration, with labor reduction exerting the larger effect. Rice productivity also declined with greater crop diversification, reflecting a trade-off between staple food production and agricultural diversity. Significant regional disparities were observed, with Java recording higher yields than other regions. Less than one-third of households accessed input subsidies, showing low utilization. The findings highlight the need to improve subsidy distribution, strengthen productivity outside Java, and address labor shortages in rice farming.