THE SOCIO-ECONOMIC VARIABLES INFLUENCING HOUSEHOLD CONSUMPTION IN THE RURAL FARMERS LEVEL
Purpose of the study: This study investigated the socio-economic effect on household consumption of rural farmers in South Sumatera, Indonesia. Methodology: The data used were primary data obtained from an in-depth survey of 300 farmer households. The analysis method used a quantitative approach with a polynomial regression model. Main Findings: The finding showed that from the four independent variables estimated, there are three which have a significant effect on farmer household consumption: household income, number of family members, and education level of the household head. Despite changes in consumption patterns between food and non-food, the process of food diversification is an important task for the government, especially to reduce dependence on rice consumption. Applications of this study: This study was conducted in South Sumatra, Indonesia in the field of agricultural economics. This study can support development planning policies in the food sector in South Sumatra. Novelty/Originality of this study: This study focus as efforts on the policy of diversifying food consumption needs to be synergized with the development of local resource-based food products.