The role of farmer performance in mediating the impact of agricultural development on rural poverty reduction in north buton regency, indonesia

Abstract

Low productivity and weak farm business competitiveness remain key challenges in agricultural development and rural poverty alleviation. This study investigates the influence of agricultural development on rural poverty reduction, with a specific focus on farm business performance as a mediating variable. Data were collected in 2019 through structured questionnaires administered to farmer groups in North Buton Regency and analyzed using Structural Equation Modeling (SEM) with AMOS. The findings indicate that agricultural development significantly enhances farm business performance, which in turn contributes to rural poverty alleviation. Furthermore, the impact of agricultural development on poverty reduction is amplified when accompanied by improvements in farm business performance. These results underscore the critical role of agricultural development as a flagship strategy for alleviating rural poverty in North Buton Regency.