Assessing the Influence of Risk Management Strategies and Government Support Programs on Farm Income: A Principal-Agent Perspective

This research paper aims to investigate the inluence of risk management strategies and government support programs on farm income, adopting a principal-agent perspective.The study aims to contribute to understanding how farmers' decisions regarding risk management and government programs affect their income levels.The theoretical foundation is based on agency theory, which provides a framework to examine the principal-agent relationship between farmers and external stakeholders.The research employs a quantitative survey method, collecting data from 327 farmers in the South and West Java regions of Indonesia over three months.The results indicate that risk management strategies and government support programs signiicantly impact farm income.The discussion of the results provides insights into the implications of farmers' risk management strategies and government support programs on farm incomes.Theoretical and practical implications, as well as limitations and future directions, are also discussed.