This study aims to analyze the effect of paddy prices, land area, and rice productivity on the Farmer Exchange Rate (NTP) in Central Java Province during the period 2014–2024. The NTP is an important indicator of farmers' welfare, reflecting their purchasing power for goods and services, so understanding its determinants has strategic implications for agricultural policy and rural development. The study sample includes 10 rice-producing districts in Central Java, with annual panel data analyzed using Stata software. The analytical methods employed include panel data regression (Fixed Effect Model and Random Effect Model) to identify variables with dominant influence on the NTP. Initial estimation results indicate that paddy prices have a significant positive contribution to NTP increases, while land area and rice productivity also have an impact, though with varying levels of significance across districts. These findings indicate that stabilizing paddy prices is a key instrument in efforts to improve farmers' welfare in Central Java. This study recommends price policies that are more favorable to farmers, accompanied by interventions to increase productivity and sustainably protect agricultural land.
Fuadi et al. (Tue,) studied this question.