Determinants Transfer of Primary Business of Rice Farmers Household at Musi Rawas District South Sumatera Indonesia

Indonesia is a country whose majority lives of agriculture and food crop agriculture remains the livelihoods of
the majority of the Indonesian population. South Sumatera province is one that is a center for food crops,
especially rice. A district that has irrigation and a rice production center in South Sumatera is Musi Rawas
District. In 10 years (1993-2013) recorded a decrease in the number of rice farmers households is significant in
Indonesia, including in South Sumatera. Changes in the amount of rice farming households in the province of
South Sumatera by Agricultural Census 2013 indicates the state of declining, even in the central areas of food.
This situation is further interesting to study the determinants of primary business of rice farmers to plant
non-food and non-agriculture, especially in the central areas of food and irrigated in South Sumatera, Indonesia.
This study used survey method and logistic regression for the analysis data. The result shows that factors
affecting farmers’ decision to switch or not switch from the main businesses, namely rice farm to farm fish,
rubber and non-agricultural businesses is land area, household income from rice, the income of non rice, grain
price at farmers level, revenue from non paddy, costs of farming, commodity prices, employment opportunities
outside of the main business, farming experience and knowledge of farmers on land conversion rules.