Palm-Oil And Livestock Integration Strategy To Attain Increasing Income And Well-Being

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Sanusi Gazali Pane, Bambang Lesmono, Iskandar Muda, Andri Soemitra, Sugianto


The potential for integration of oil palm farmers and cattle is a model of rural economic development that relies on land resources, the role of the family and the government organizations to increase income and community welfare. By relying on primary data on 297 community respondents of farmers and ranchers who were processed using warpPLS version 6.0, it was found that the estimation model was able to explain the relationship between standard of living to increase in income, and standard of living to welfare of 31% and 17.5%. Likewise, the relationship between productivity variables on increasing income and productivity on people's welfare can be explained by the values of 52.1% and 20%. Thus, this strategy can be used as a policy basis for rural economic development in Indonesia which has relatively the same characteristics.

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