Farmers' Highest Welfare Level Found in the Plantation Sector

The rise in palm oil (Crude Palm Oil/CPO) prices increased the welfare of plantation crop farmers in 2021. The welfare of plantation crop farmers was even the highest compared to farmers in other subsectors.

Based on data from the Central Bureau of Statistics (BPS), the farmer exchange rate for plantation crops (NTPR) increased by 15.96% to 120.97 in 2021 compared to the previous year, which stood at 104.32. Compared to the beginning of the index calculation (2018=100), the welfare of plantation crop farmers has increased by 20.97%.

The farmer exchange rate for fishermen and fish cultivators (NTNP) also increased by 2.94% to 103.97 in 2021 compared to the previous year's 100.35. The farmer exchange rate for horticultural crops (NTPH) increased by 0.36% to 101.6 last year compared to 101.28 the previous year. Similarly, the farmer exchange rate for livestock (NTPT) increased by 1.13% to 99.19 in 2021 from 98.08 previously.

Meanwhile, the farmer exchange rate for food crops (NTPP) decreased by 3.2% to 98.21 in 2021 compared to 101.43 the previous year. The unchanged prices of food crop yields resulted in little movement in the index of prices received by farmers (it). Meanwhile, the increase in the prices of household goods and agricultural production goods resulted in a higher index of prices paid by farmers (ib) than those received.

The overall farmer exchange rate (NTP) increased by 2.94% to 104.64 in 2021 compared to 101.65 the previous year. Only the farmer exchange rate for plantation crops was above the overall NTP. The farmer exchange rates for other subsectors were below the overall NTP. Indeed, the farmer exchange rates for the livestock and food crop subsectors were below 100. This indicates that the welfare of farmers in these two subsectors decreased since the beginning of the index calculation.