The application of structural equation modeling in building an economic welfare model for rice farmers: In search of the way towards a sustainable life
8 affiliations
- 1Laboratory of Agribusiness, Department of Socio-economics of Agriculture, Faculty of Agriculture, Hasanuddin University, Jl. Perintis Kemerdekaan Km. 10, Makassar City, 90245, Indonesia; Farm Management and Agricultural Marketing Research Group, Faculty of Agriculture, Hasanuddin University, Jln. Perintis Kemerdekaan Km. 10, Makassar City, South Sulawesi Province, 90245, Indonesia
- 2Laboratory of Agricultural Development, Department of Socio-economics of Agriculture, Faculty of Agriculture, Hasanuddin University, Jl. Perintis Kemerdekaan Km. 10, Makassar City, 90245, Indonesia
- 3Laboratory of Agribusiness, Department of Socio-economics of Agriculture, Faculty of Agriculture, Hasanuddin University, Jl. Perintis Kemerdekaan Km. 10, Makassar City, 90245, Indonesia
- 4Laboratory of Agricultural Development, Department of Socio-economics of Agriculture, Faculty of Agriculture, Hasanuddin University, Jl. Perintis Kemerdekaan Km. 10, Makassar City, 90245, Indonesia; Farm Management and Agricultural Marketing Research Group, Faculty of Agriculture, Hasanuddin University, Jln. Perintis Kemerdekaan Km. 10, Makassar City, South Sulawesi Province, 90245, Indonesia
- 5Omdurman Islamic University, Omdurman Abuseeds, Main Campus, Khartoum, Al-Khartoum, P.O. Box 382, Postal Code 14415, Sudan
- 6Farm Management and Agricultural Marketing Research Group, Faculty of Agriculture, Hasanuddin University, Jln. Perintis Kemerdekaan Km. 10, Makassar City, South Sulawesi Province, 90245, Indonesia; Department of Agricultural Systems, Faculty of Agriculture, Rajarata University of Sri Lanka, Anuradhapura, 50000, Sri Lanka
- 7Farm Management and Agricultural Marketing Research Group, Faculty of Agriculture, Hasanuddin University, Jln. Perintis Kemerdekaan Km. 10, Makassar City, South Sulawesi Province, 90245, Indonesia; Faculty of Economics and Management, Vietnam National University of Agriculture, Trau Quy town, Gia Lam District, Hanoi, 12406, Vietnam
- 8Farm Management and Agricultural Marketing Research Group, Faculty of Agriculture, Hasanuddin University, Jln. Perintis Kemerdekaan Km. 10, Makassar City, South Sulawesi Province, 90245, Indonesia; Department of Agricultural Extension, Faculty of Agriculture, University of Peradeniya, Peradeniya, 20400, Sri Lanka
Abstract
Rice ( Oryza sativa L.) is a principal food crop globally. It is classified as a strategic commodity that strengthens the national economy, guarantees food security, and signifies a nation's economic governance. Hence, the current study aimed to examine the determinants affecting rice productivity and farmers’ economic welfare in Bantaeng Regency, Indonesia. One hundred forty (140) primary data points were collected by structured interviews. The data was analyzed using structural equation modeling. The findings indicated that the Exogenous Latent Variables (EXLV) of Production Factors (FPR), Farmers' Characteristics (KRK), and Agricultural Institutional Activities (AKP) had direct impacts on the Endogenous Latent Variables (ENLV) of Agricultural Activities (APN) and Non-agricultural Activities (ANP). Also, the EXLV of Production Factors and Agricultural Institutional Activities had an indirect impact on the rice farmers’ economic welfare. As a result, the EXLV of Production Factors and Agricultural Institutional Activities were found to be the most important variables in the model, exerting direct and indirect effects on rice farmers’ economic welfare. These findings also indicated that the indicators of these two latent variables were very important in increasing rice farmers’ economic welfare. Consequently, improving farmers' access to irrigation systems, expanding the area planted, intensifying labor use, and applying high-quality seeds, which were the indicator variables for the production factors, will be effective policy actions to enhance rice farmers’ economic welfare. In addition, to improve the well-being and sustainable livelihood of rice farmers, it is also important to strengthen the effectiveness of agricultural institutional activities by improving extension services and increasing farmers' access to markets. Implementing these strategies will be a long-term solution to enhance the welfare of rice producers and to sustain farmers' livelihoods and production management.
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BibTeX
@article{syam2026application,
title = {{The application of structural equation modeling in building an economic welfare model for rice farmers: In search of the way towards a sustainable life}},
author = {Siti Hardiyanti Syam and Ariyadi Pratama and Muslim Salam and Rusli M. Rukka and A. Nixia Tenriawaru and Muhammad Arsyad and Ayu Anisa Amir and Muhammad Hatta Jamil and Ahmad Imam Muslim and Akhsan and Rahmadanih and Letty Fudjaja and Rafiqah Maulidiyah and Hamed Noralla Bakheet Ali and Chinthaka Karalliyadda and Nguyen Thi Ngoc Thuong and Ariyawanshe IDKSD and Adhyta Puspita Summase},
journal = {Sustainable Futures},
year = {2026},
month = oct,
doi = {10.1016/j.sftr.2026.102256},
url = {https://doi.org/10.1016/j.sftr.2026.102256},
note = {CC BY},
}
RIS
TY - JOUR
TI - The application of structural equation modeling in building an economic welfare model for rice farmers: In search of the way towards a sustainable life
AU - Siti Hardiyanti Syam
AU - Ariyadi Pratama
AU - Muslim Salam
AU - Rusli M. Rukka
AU - A. Nixia Tenriawaru
AU - Muhammad Arsyad
AU - Ayu Anisa Amir
AU - Muhammad Hatta Jamil
AU - Ahmad Imam Muslim
AU - Akhsan
AU - Rahmadanih
AU - Letty Fudjaja
AU - Rafiqah Maulidiyah
AU - Hamed Noralla Bakheet Ali
AU - Chinthaka Karalliyadda
AU - Nguyen Thi Ngoc Thuong
AU - Ariyawanshe IDKSD
AU - Adhyta Puspita Summase
PY - 2026
DA - 2026/10/30
JO - Sustainable Futures
DO - 10.1016/j.sftr.2026.102256
UR - https://doi.org/10.1016/j.sftr.2026.102256
AB - Rice ( Oryza sativa L.) is a principal food crop globally. It is classified as a strategic commodity that strengthens the national economy, guarantees food security, and signifies a nation's economic governance. Hence, the current study aimed to examine the determinants affecting rice productivity and farmers’ economic welfare in Bantaeng Regency, Indonesia. One hundred forty (140) primary data points were collected by structured interviews. The data was analyzed using structural equation modeling. The findings indicated that the Exogenous Latent Variables (EXLV) of Production Factors (FPR), Farmers' Characteristics (KRK), and Agricultural Institutional Activities (AKP) had direct impacts on the Endogenous Latent Variables (ENLV) of Agricultural Activities (APN) and Non-agricultural Activities (ANP). Also, the EXLV of Production Factors and Agricultural Institutional Activities had an indirect impact on the rice farmers’ economic welfare. As a result, the EXLV of Production Factors and Agricultural Institutional Activities were found to be the most important variables in the model, exerting direct and indirect effects on rice farmers’ economic welfare. These findings also indicated that the indicators of these two latent variables were very important in increasing rice farmers’ economic welfare. Consequently, improving farmers' access to irrigation systems, expanding the area planted, intensifying labor use, and applying high-quality seeds, which were the indicator variables for the production factors, will be effective policy actions to enhance rice farmers’ economic welfare. In addition, to improve the well-being and sustainable livelihood of rice farmers, it is also important to strengthen the effectiveness of agricultural institutional activities by improving extension services and increasing farmers' access to markets. Implementing these strategies will be a long-term solution to enhance the welfare of rice producers and to sustain farmers' livelihoods and production management.
SN - 2666-1888
ER -