Influence Analysis of Price Fluctuations and Labor Costs, Against Revenues Potato Farmers in the village Pinangsungkulan Modoinding subdistrict, South Minahasa, North

Sulawesi (2012-2014)

Lenny Leorina Evinita (Universitas Negeri Manado

This study will be conducted in the village of the District Pinangsungkulan Modoinding South Minahasa, North Sulawesi. The object of research is the farmer’s potato farmers, where the system of marketing and sales at the farm level do not always siding with the farmers themselves. Many potato farmers will often complain that the system pricing by the buyer at the village / farmer much different compared to the market prices in the city of Manado and its surroundings, especially with export prices out of the island of Sulawesi like to Maluku, Papua and Kalimantan. The difference in the purchase price and the selling price at the farmers market and surrounding Manado rose 100-150 % of purchase price on farmers. The market mechanism becomes uncontrolled resulting unstable price fluctuations and the potato farmer always on the side that is not profitable. It happens also in the process of planting, maintenance and harvest time period is often an increase in labor costs at the level of 50-75 % of the normal price per person per 6 hours per day. Both of these factors are a source of problems for potato growers in the village Pinasungkulan in the last 3 years this very disturbing sustainability and prosperity of potato growers who bring a negative impact in the economy of the community at the farmer level.

A research method was descriptive and data analysis using multi regression. The data were collected from data collection from questioner which is answer by the potato famer’s data analysis, statistical analysis.

The purpose of the study was to determine the factors causing fluctuations in commodity prices of potatoes in a potato farmer in the village Pinasungkulan Modoinding subdistrict, South Minahasa regency and to find out information on the availability of labor income level Desa Pinasungkulan potato farmers.

This research method is descriptive method and using data collection techniques are through questionnaire, interview, and observation. Total population in the study was 100 people, potato farmers and 58 samples of potato growers.

The result of this research have showed that 1) There is influence between price fluctuation and revenue of potato farmer 2) There is quiet significant the influence of labor cost to revenue.

Learning from the result, it can concluded the labor cost doesn’t have a reliable quantity due to the result, there is other factor that is effect to the revenue of the famers example logistics, advertising etc.

Keyword: Price fluctuation, Labor cost, Income

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I. INTRODUCTION 1.1Background

Kitchen East Indonesia is a predicate that is placed with the mountains of the valley Modoinding since from 1990 until today and It one of farm in the Sulawesi. The District Modoinding divided from 10 villages one of which is the village Pinansungkulan are made in the research area.The location of this research is a major producer of vegetables and tubers for major cities in Indonesia East and arguably already some areas routinely making large scale come from Jayapura , Biak , Nabire , Monokwari , Sorong which is in Papua and West Papua , Ternate and some small cities diProvinsi Maluku and North Maluku

Manado, Gorontalo, Palu, Kendari, Mamuju, and Makassar and small towns more across the province on the island of Sulawesi, Samarinda and Balikpapan and Tarakan to several provinces in Kalimantan also received vegetable intake major and tubers taken of districts Modoinding.

The village is the Capital District Pinansungkulan Modoinding where the number of residents in the village Pinansungkulan is approximately 2,761 inhabitants of which 90% are farmers. Being an altitude of 1,200 meters above sea level, making this region is very fertile and cool which is very suitable for growing horticultural, particularly potatoes which can only be planted in the highlands like Modoinding, until now there is no location to produce potatoes like the ones produced Modinding which can produce 70,000 tons per harvest time (3-4 months). The achievement of this harvest will be marketed scattered throughout eastern Indonesia.

Potatoes are a major foodstuffs needed by the public for daily use in your diet every day. Strong demand from the public to make a stable price level, the seller (the market price), fixed level of potato growers the price is not very stable, price fluctuations are volatile and certainty benchmark minimum price to make a potato farmer cannot get or predict stable prices that can support income family income.

Based on market observation at the level of a great collector of traditional market in the city of Manado as in BERSEHATI market, market and Karombasan market, which is the price per sack (70 kg)/IDR 600.000- IDR 700,000, compared with the price at farmer level per sack (70 kg) IDR 250,000 to IDR 300,000. Prices at the retailer level will be higher, which arrived on consumer to IDR 15,000 / kg or IDR 1,050,000 per sack , but the study will not discuss prices at the consumer level .Data price per sack for the years 2012-2014 for farmers

No Year Average Price Potatoes per sack

1 2012 IDR 180.0002 2013 IDR 250.0003 2014 IDR. 300.000

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In the same period prices on the collectors market big - traditional markets in the city of Manado and its No Year Price of Potatoes in the traditional market1 2012 IDR.500.0002 2013 IDR 650.0003 2014 IDR 700.000

From the data above we can see balanced the price scale and profit margins by potato farmers who have to work 4 months from planting to harvest compared to profit collectors this potato whose only worked one day.The price factor unbalanced , there are still fundamental problems also makes the economic conditions and incomes of potato growers are in a very unfavorable position , i.e. factors that soaring price of labor at the time of planting , maintenance and harvest time period . The price of labor per 6 hours each day normally IDR. 60,000 become IDR. 90.000 - IDR. 110,000 per person. This caused the shortage of available manpower while demand for potato farmers high and it can be delayed because it will have an impact on the quality of the result of the potato itself.

The two factors above which is difference in purchase price and the selling price in the market that control by middlemen that bring high margin rates were very unbalanced, thus need to be held price adjustment in the level of farmers which could have an impact on increasing the income of farmers by way system linkages and improved new information. Can be given at the farm level by a specialized institution guarantor of prices so that pricing can be an effective and balanced in favor of the farmers.According to the analysis the researchers, this time farmers are not getting the latest information to the prevailing price in the market, so that middlemen give the lowest price they can get for taking a profit margin as much as possible. And also the availability of labor is not planned, the cropping pattern and cropping the same time making a lot of labor demand at a particular time and affect the price of potatoes at harvest time because it seemed over-supply at the village level and District Pinasungkulan Modoinding.With the condition of the above problems, the researchers wanted to know how the mechanisms of the market in terms of pricing potatoes were created in the village of Pinasungkulan District of Modoinding causing high margin market price as much as possible in favor of the advantages of potato growers and can share profits with middlemen, power work and the various elements involved in the mechanism of social economy.

1.2 Formulation of the Problem

Based on the background of the problems and situations, the writer can identify the problem as follows:a. Potato farmers have not been able to get information potato effective marketing channel and renewable prevailing in the market.b. Pricing is not the farmers but of middlemen changing.

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c. The amount of the received profit margins of middlemen who profit margins resulted in very little potato farmers.d. Availability of labor is influenced by planting the same time resulting in labor shortages.

1.3 Restrictions Problemsa. Based on the identification problem, so this study was limited to the issueb. Information fluctuating prices and the pricing of potatoes that were unfavorable to the farmers causing profit margins in the potato farmers received much different from the price received by middlemen.c. The pattern of planting time with the availability of labor in different time so that the availability of labor can be set.

1.4 Formulation of the problemThe formulation of the fundamental problems in this paper is as follows:How does the influence of fluctuating prices and high labor costs to the level of income of potato growers in the village Pinasungkulan Modoinding District of South Minahasa regency of North Sulawesi”

1.5. Purpose of the researchThe purpose of this research is as follows:1. To know clearly the occurrence of fluctuating prices that were unfavorable to farmers and look in more detail at the profit margins received by potato farmers.2. To determine the cost of labor and overall profit margins on the income of potato growers.3. To provide information to the authorities in this case the relevant government agencies and businesses potato trade in North Sulawesi.

2. LITERATURE REVIEW

2.1. Price fluctuations

Prices are determined by supply and demand. The price drop causes declining supply and increasing their prices will lead to increase supply. Where demand and supply meet is called equilibrium. Is the lack of constant fluctuations or shocks, for example on the price of goods and so on, of all things that can be seen in a graph? Price is a unit of value assigned to a commodity as information from the manufacturer / owner of the commodity. So the price fluctuation is their lack of a defined set of values given in a commodity.

The price fluctuation is common practice adapted to the production company to stimulate high demand which is also known as the major causative agent of Bullwhip effect.It is assumed in most of the inventory model where the purchase price or unit production costs are constant during the planning period without considering change price, but the price fluctuations that occur and on a scale that cannot be ignored as that will lead to the wrong decision [13]. Seung

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Employers often apply monopoly pricing strategy cannot be done by the employers who are in a perfectly competitive market one example of this strategy is price discrimination. With the policy of price discrimination against same commodity will be charged a different price.

In economic theory states that the unit price of goods and services that the market is competitive, then high-low prices are determined by market supply and demand. The demand is always in touch with the buyer, while the deals associated with the seller, if between sellers and buyers interact then there buying and selling activities. At the time of the sale and purchase market then there will be bidding to reach a price agreement. Where the buyer is always willing to have a cheap price and the sellers willing to have high prices and are expecting high profits. The price agreed upon by both parties called the market price.There is a change in the market price to the determination of the highest price, the base price is intended to change the equilibrium price and quantity.

a. Ceiling price The highest price that can effectively maintain price below the equilibrium price. The highest price reduces the quantity traded in the market and will lead to a shortage of supply due to the seller reduces the quantity supplied at a lower price it. b. Basic priceThe basic price that can effectively maintain price above the equilibrium price, the base price will reduce the quantity traded and creating excess if the seller is allowed to produce the goods in the amount they want at the price level is higher.

The basic assumption of the model Mundell - Fleming is the domestic economy "small" in relation to the international (small and open economy). This assumption emphasizes that the world variables (income, prices and interest rates) are exogenous.In general, in Indonesia for price information strategy has not done well to reach farmers or all of the parties involved in the structure of certain commodity markets, most of the price much enjoyed by the wholesalers and farmers may enjoy such price changes (Azzaino, 1998). 'Natural price' of a commodity (‘value’ in the vocabulary Marx, although minus the rent and profit) is the center of gravity for market price fluctuations, (Marx and Smith, 1865). Marx himself acknowledged the existence of price fluctuations caused by the disproportion between supply and demand for commodities. But the fluctuations that occur daily basis is actually hides the underlying structure. Relying on research Samuel Tooke in his book, History of Prices, Marx pointed out that the market price in fact merely the price of the short-term, while the long-term market prices tend to market equilibrium

2.2 Labor costsManpower is important in the conduct of a business or enterprise, every person who is

able to work is referred to as labor. Economic and accounting perspective on labor costs in many ways has similarity, for accountants, wage and salary expenditures are expenditures directly and thus is the cost of production. Economists regard these payments as explicit costs of labor services (office hours) and it is assumed that the wage rate is the amount to be received by the workers of the next best alternative use.

Functional income distribution shows the share of national income generated by each resource. Labor income is the largest component of the national income.Labor is a physical or mental effort incurred employees to process the product. Labor costs is the price charged for the use of human labor.

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Classification of activities and labor costs by principal function within the company's organization in the Organization of manufacturing companies are divided into three main functions of production, marketing, and administration.Examples of labor costs which are included in each of the class.a) Cost of production workers: salaries of employees, the cost of employee welfare factories, factory employee’s overtime wages, the wages of factory foreman, plant manager salaries.b) The labor cost of marketing: marketing employee wages, employee welfare costs of marketing, commission fees salesman, marketing manager salaries.c) The cost of labor and public administration: salaries of employees of the accounting department, the personnel, the secretariat, the cost of employee benefits accounting department, personnel department employee welfare costs, the cost of the welfare of employees in the secretariat.

The way of calculating the wages of employees in the company one of which is by multiplying the rate of pay the employee working hours. Thus, to determine the wages of an employee need to collect data on the number hours worked during a given period. In companies that use the cost of the order, the primary document to collect employee time card is present (clock card) and card business hours (time job ticket).According Soeharno (2007), one of the factors that influence the production is labor. Labor is a human production that directly or indirectly carry out production activities. Workforce or employees who work outside standard hours that have been set or perform overtime work (overtime) are entitled to a work shift premiums, (Swatsha and Sukotjo, 2007)

The labor costs are costs incurred to finance labor (human in the production process) Mulyadi, (2009). Labor is a physical or mental effort incurred employees to process the product. The cost of labor is the price charged for the use of human labor. May also mean all the fringe benefits provided by the company to all employees, labor cost element is the cost of production is labor costs for employees in the factory.Classification of activities and labor costs in manufacturing employment classification of activities can be carried out as follows:a. Classification according to the principal function in the organization of companiesb. Classification of activities according to the departments within the companyc. Classification according to the type of workd. Classification by their relationship to the productLabor costs in the family has the primary objective to achieve efficiencies of Labor, including the problems of determining the level of compensation (salaries and wages) are adequate to keep the quality of the products meet quality standards and can be optimally achieved volume production. A measurement of labor costs is a standard of achievement, as a gauge of productivity and efficiency of work performance and to assess differences between expected with achieved.

Flow Keynesian explained that fluctuation occurs in the absence of the correction mechanism capable of boosting the economy at full employment balance, which is caused by rigid prices especially in the wage rate adjustment mechanism. Economic imbalances associated with unemployment and inflation cause Keynesians believe in the necessity of government intervention as corrective measures.

2.3 Revenue

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Inflation is not managed properly potentially lower incomes. The decline in public revenues will be felt significantly by the middle-class society. The decrease in revenues was positively correlated with declining welfare. Welfare indicator always used that have two levels of unemployment and poverty. The number of unemployed in 2009 was 9.25 million, fell to 8.5 million in 2010 or a decrease of 667 thousand people. This amount does not include the half-open unemployment or workers who work less than 35 hours per week increased from time to time in line with the limited employment opportunities. In 2010, half open unemployment is estimated at 32 million more. Unemployment is an open half reflects the level of labor welfare in the country.

While the poverty rate in 2010 reached 31.02 million. However, if you look at the relative poverty rate is estimated at 30 million more. Relative poverty is positioned as the poor segments of society that are vulnerable if the inflation rate continues to grow and less than optimal policies stand for supporting poverty programs.Economic equality is the mandate of the 1945 Constitution which gives the message embodies the general welfare in a fair and equitable. This requires solving economic equality strategically and systematically. The solution might be to carry out a policy of discrimination in fuel prices and a staple of society according to the diversity of the inflation rate of each region, the increase in the budget to alleviate people from poverty, and create a forum for inflation control regions to restrain the rate of increase in prices of basic needs of society, strengthening partnerships between local governments and private companies and state enterprises in expanding employment opportunities, draw up local regulations that provide accessibility easiness opening productive business field for micro and small scale enterprises.Thus economic equality, especially in the area can materialize significantly, which has implications on strengthening the foundation of the structure of household finances. The stronger financial structure is expected to be able to offset rising inflation. In the end the prices will return to its original equilibrium position which is positive for the market.

Net income of farmers in the form of the number of production multiplied by the price be reduced by the cost of production and marketing (Mubyarto, 1977) The results of production (output) denoted y and factors of production (input) is x, so that there is a relationship between the input and output are formulated math:

Y= f(x1,x2,xi………xn)Where x1, x2, xi and xn can be agricultural land, labor, capital and management (Soekartawi, 1990)To identify the factors influencing farmer income can be analyzed with the profit function. Equation profit function derived from the production function equation. Production function equation can be written as followsQ = Af(X,ZWhere Q = Production            A = the amount which indicates the level of technical efficiency            X = variable factor of production            Z = variable factor of production fixed (fixed variable)Using the above equation prevailing assumption if it’s a short term, the fixed factor such as land and farm tools does not affect the desire to increase profits. That is, for each particular area of land farmers can increase profits by manipulating the prices of factors of production nonetheless. Thus, the benefits can be written (Yotopoulus and Nugent, 1976).

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Marx wrote in Theories of Surplus Value: Gain on average, and therefore also the prices of production, will be wholly imaginary and without foundation if we do not use the determined value as the foundation. Equalization of surplus value in the different spheres of production would not generate a difference in the absolute magnitude of the total surplus-value but only change the distribution between the different spheres of production. Determination on more value itself, despite that, just emerging from the determination of value by labor time. Without these, the average profit would be the absence of the average, be the result of mere imagination.According Sukirno 2000, the individual income is the income received by all households in the economy of the payment for the use of factors of production that it owns and from other sources. According Sukirno (2006) Income is the amount of income received by a resident on his performance during a given period, whether daily weekly, monthly or yearly.Soekartawi (2002: 3) states the reception is the product of the production obtained with the selling price. Mubyarto (1995) states that reduced revenue constitutes acceptance of the costs incurred. Income basically depends on the job in the service or production, as well as working hours were poured, the level of income earned per hour

3. OBJECTIVES AND RESEARCH Research purposesThe purpose of this study was to analyze the effect of price fluctuations, labor costs to revenues Pinasungkulan potato farmers in the village of South Minahasa district.

Benefits of researcha. We hope this research can provide advice or input for potato farmers, especially in determining the selling price to the Tibo (container result potato farmers) are more beneficial to farmers.b. The government is expected to intervene in determining the price of potatoes in the village Pinasungkulan.c . A good cooperation between the public and potato farmers in the village Pinasungkulan South Minahasa regency with Academician UNIMA particularly in the implementation of the Tri Dharma University.

4. RESEARCH METHOD

The purpose of this study to determine the effect of price fluctuations, labor costs to revenues Pinasungkulan potato farmers in the village, District Modoinding. Based on this research purpose, in this study used descriptive method. Descriptive method used to search the facts with proper interpretation and aim find a picture in a systematic, factual and accurate about the facts and the nature of the studied (Natzir, 2004).3.1. Location and Time ResearchThis study was conducted in South Minahasa District Subdistrict precisely in the Village Pinasungkulan Modoinding and which became operational area is the entire potato growers. As for the time of the study was designed to be implemented within a period of 2 (two) years.3.2. Procedures and Data Collection TechniquesThis research using secondary data. Secondary data is data that is created or collected by others (have now, 2006). The reason for using secondary data with the consideration that the data is easy to obtain and have a more extensive time. Secondary data were a report from potato prices prevailing in the market of consumers who go public

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According Indrianto and Supomo, (1999) in the study there are two sources of data are primary data and secondary data.Data retrieval is performed in this study using a questionnaire survey and research that has been designed based on the research variables to achieve the desired objectives. The research questionnaire aimed to obtain primary data directly from survey respondents objectively.Besides collecting data through questionnaires, so in this study also collected data through interviews with respondents, so that researchers can obtain information that is complementary and reinforcing the level of accuracy of data obtained through questionnaires. The collection of data in addition to questionnaires and interviews, the researchers also used documentation study technique that is generally in the form of annual report.3.3. Population and SampleTarget population in this study are all potato farmers in the research sites. Based on the existing data on the number of potato growers Pinasungkulan village about 100 potato farmers.To draw a sample in this study used a number of ways, because the target population and the number of different populations is even a section where farmers do not plant potatoes the sampling technique used is purposive sampling.Purposive sampling is a sampling technique with a certain considerations or special selection.Roscoe (1975), quoted Uma Sekaran (2006) provides a common reference for determining the sample size:1. The sample size of more than 30 and less than 500 is appropriate for most research2. If the sample is split into subsamples (male / female, junior / senior, etc.), the minimum sample size of 30 for each category is appropriate3. In multivariate research (including multiple regression analysis), the sample size should be 10 times greater than the number of variables in the study4. for a simple experimental research with strict control experimentation, research that success is possible with a small sample size 10 to 20 sample.

5. RESULT AND DISCUSSION

Based on the above theory, the researcher’s estimate the sample size (n) required can be calculated 10 times greater than the number of variables in the study as many as 30 potato farmers but researchers took a sample of 58 potato growers to be more feasible results of the study, the standard error 5%.Variable Operational Definition of Research1. Price Fluctuations (X1)Natural price 'of a commodity (' value 'in the vocabulary Marx, although minus the rent and profit) is the center of gravity for market price fluctuations, (Marx and Smith, 1865).2. Labor Costs (X2)The labor costs are costs incurred to finance labor (human in the production process) Mulyadi, (2009).3. Income (Y)Net income of farmers in the form of the number of production multiplied by the price be reduced by the cost of production and marketing (Mubyarto, 1977

5.1 Data Analysis

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Based on the problems and the design of the study, so in this study will use multiple regression using SPSS program. After the questionnaires distributed, the next activity is collected all questionnaires that have been distributed. In the collection of the questioner not all the questioner can collect. Based on the number of questionnaires collected, researcher analyze the data using SPSS and then after the completion of data analysis followed by discussion.After going through the process of Pre-Survey, researchers get results while that indeed the price fluctuations, labor costs affect the earnings of a potato farmer in the village Pinasungkulan South Minahasa district, these results obtained from research interviews to several potato farmer in Pinasungkulan. After that the chairman and members doing their job of spreading the questionnaire to potato growers as much as 58 questionnaire distributed to potato farmers in villages Pinasungkulan.

The next step after the questionnaires are distributed to collect back all the questionnaires that have been distributed. In the collection returned questionnaires already distributed would certainly will find various kinds of constraints.Fluctuations in the price of very positive influence to the income of farmers. This means that the higher price of potatoes will be followed by increased incomes, conversely lowering the price of potatoes will be followed by a decrease in revenue, assuming no other factors that affect the income. The cost of labor is not so affect incomes of farmers. This means that there are factors other than labor costs that affect farmers' incomes may be caused by the cost of shipping potatoes. There is a problem that occurs in these farmers towards the cost of labor in which there are no standard of farmer associations against the standards of the labor cost.What was occur the cost of wages per day for workforce management ranging from area of planting, planting and maintenance until harvest in using the market price prevailing at the village Pinasungkulan.

Calculation of the DataDescriptive Statistics

N Minimum Maximum Mean Std. DeviationHargaJual 58 2 2 2.00 .000HARGA RERATA 58 200,000 450,000 285,517.24 38,201.792LuasLahan 58 1 6 1.76 1.174JUMLAHPERTEKTEK 58 6 100 19.26 17.715UPAH/HARI 58 100,000 100,000 100,000.00 .000UPAH/PANEN 58 1,500,000 25,000,000 5,506,034.48 5,131,892.691PANEN/TAHUN 58 2 3 2.10 .307PANEN (KARUNG) 58 18 300 91.43 66.687BIAYAPETSISIDA 58 200,000 3,000,000 635,689.66 481,463.821BIAYA PUPUK 58 750,000 7,700,000 2,306,034.48 1,454,306.297PENDAPATAN 58 3,000,000 100,000,000 19,413,793.10 17,881,220.653Valid N (listwise) 58

CorrelationsHarga1 Harga2 Harga3 Harga5 HARGA

Harga1 Pearson Correlation 1 .491** .450** .470** .577**

Sig. (2-tailed) .000 .000 .000 .000N 58 58 58 58 58

Harga2 Pearson Correlation .491** 1 .581** .620** .650**

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Sig. (2-tailed) .000 .000 .000 .000N 58 58 58 58 58

Harga3 Pearson Correlation .450** .581** 1 .433** .855**

Sig. (2-tailed) .000 .000 .001 .000N 58 58 58 58 58

Harga5 Pearson Correlation .470** .620** .433** 1 .616**

Sig. (2-tailed) .000 .000 .001 .000N 58 58 58 58 58

HARGA Pearson Correlation .577** .650** .855** .616** 1Sig. (2-tailed) .000 .000 .000 .000N 58 58 58 58 58

**. Correlation is significant at the 0.01 level (2-tailed).

CorrelationsTK1 TK3 TK4 TK5 TENAGAKERJA

TK1 Pearson Correlation 1 .261* .409** .316* .666**

Sig. (2-tailed) .048 .001 .016 .000N 58 58 58 58 58

TK3 Pearson Correlation .261* 1 .168 .238 .526**

Sig. (2-tailed) .048 .208 .072 .000N 58 58 58 58 58

TK4 Pearson Correlation .409** .168 1 .480** .606**

Sig. (2-tailed) .001 .208 .000 .000N 58 58 58 58 58

TK5 Pearson Correlation .316* .238 .480** 1 .593**

Sig. (2-tailed) .016 .072 .000 .000N 58 58 58 58 58

TENAGAKERJA Pearson Correlation .666** .526** .606** .593** 1Sig. (2-tailed) .000 .000 .000 .000N 58 58 58 58 58

*. Correlation is significant at the 0.05 level (2-tailed).**. Correlation is significant at the 0.01 level (2-tailed).

CorrelationsI1 I2 I3 I4 I5 PENDAPATAN

I1 Pearson Correlation 1 .788** .608** .003 .020 .829**

Sig. (2-tailed) .000 .000 .983 .882 .000N 58 58 58 58 58 58

I2 Pearson Correlation .788** 1 .773** .130 .102 .923**

Sig. (2-tailed) .000 .000 .332 .447 .000N 58 58 58 58 58 58

I3 Pearson Correlation .608** .773** 1 .100 .139 .848**

Sig. (2-tailed) .000 .000 .453 .299 .000N 58 58 58 58 58 58

I4 Pearson Correlation .003 .130 .100 1 .715** .336**

Sig. (2-tailed) .983 .332 .453 .000 .010N 58 58 58 58 58 58

I5 Pearson Correlation .020 .102 .139 .715** 1 .356**

Sig. (2-tailed) .882 .447 .299 .000 .006

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N 58 58 58 58 58 58PENDAPATAN Pearson Correlation .829** .923** .848** .336** .356** 1

Sig. (2-tailed) .000 .000 .000 .010 .006N 58 58 58 58 58 58

**. Correlation is significant at the 0.01 level (2-tailed).

Reliability StatisticsCronbach's

Alpha N of Items.789 4

Reliability StatisticsCronbach's

Alpha N of Items.649 4

Reliability StatisticsCronbach's

Alpha N of Items.746 5

Model Summaryb

Model R R SquareAdjusted R

SquareStd. Error of the

Estimate Durbin-Watson1 .400a .160 .129 .72889 1.997a. Predictors: (Constant), TENAGAKERJA, HARGAb. Dependent Variable: PENDAPATAN

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ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 5.563 2 2.782 5.236 .008b

Residual 29.220 55 .531

Total 34.783 57

a. Dependent Variable: PENDAPATAN

b. Predictors: (Constant), TENAGAKERJA, HARGA

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

Correlations Collinearity Statistics

B Std. Error Beta Zero-order Partial Part Tolerance VIF

1 (Constant) .772 1.132 .682 .498

HARGA .446 .255 .289 1.752 .085 .385 .230 .217 .561 1.784

TENAGAKERJA .309 .354 .144 .875 .385 .336 .117 .108 .561 1.784

a. Dependent Variable: PENDAPATAN

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6. CONCLUSIONS AND RECOMMENDATIONS

Conclusion While the research results indicate that price fluctuations are positive and significant impact on the income of potato growers. This indicates that if a potato farmer wants to get a larger income, the price of potatoes should be controlled by the government and not by middleman. Where the middleman will be control the market price and usually does not favor the potato farmers.And the results while labor costs are not unduly affect the income of potato growers because may be there is another factor that also effect the income of the famer like logistic cost, advertising etc.

SuggestionThe implications of these conclusions is expected the cooperation of the government to participate in determining the price of potatoes that farmers are not so impaired, if the income of farmers enhancer it will improve the welfare of farmers. It is hoped that the government siding with the farmers not to employers or individuals (middlemen) who have big capital to be able to benefit greatly according to what they expect.

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