Alhakim, Nisa Sabira (2024) THE INFLUENCE OF LIVELIHOOD CAPITAL ON THE WELFARE OF SMALLHOLDERS IN KETAPANG AND KATEKAN VILLAGES CENTRAL JAVA PROVINCE. Undergraduate thesis, UNIVERSITAS DIPONEGORO; FAKULTAS TEKNIK.

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Abstract

Rural communities depend on agriculture as the main strategy to improve their livelihoods.
The issue of resource utilization in agricultural systems has become a rural topic of urgency for the
planning process. Some of the problems that farmers often face related to this issue include
inefficient water use, soil degradation, land conversion, and unequal distribution of agricultural
resources. To respond to these problems, farmers as processors must be able to make adequate
decisions by considering local social, economic, and political circumstances. The actions taken by
farmers are called livelihoods. The sustainable livelihood approach is used as the main theory to
analyze the influence of smallholder livelihood capital on rural development. Sustainable livelihood
capital includes natural, human, social, physical, and financial capital. Sustainable livelihood
capital has a close relationship with rural development where through the utilization of livelihood
capital, rural communities, in this case smallholders, can increase productivity and income from
agricultural products, which has implications for improving farmers' welfare. Based on statistical
data, the majority of farmers in Indonesia are smallholders with more than 50% of the total number
of farmers, of which 68% are located in Java. In this case, Central Java Province can be said to be
one of the main buffers of national food so rice productivity is prioritized to continue to be boosted.

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