Income effect of Integrated Crop Management (ICM) among rice farmers in Indonesia

The growth of Indonesian population, which is predicted to increase about 0.99% in the next 20 years, requires efforts to increase rice production. In line with efforts to increase rice production, the Indonesian government through the Agency for Agricultural Research and Development has advocated a system called Integrated Crop Management (ICM). One component of ICM's most prominent technology and proven to increase productivity is the way of planting the rice, which is called the Legowo 2:1 planting system. This research aims to assess the factors that affect the adoption of Legowo 2:1 planting system and the impact of adoption to the farmers’ income in district of Pangkajene Kepulauan, South Sulawesi, Indonesia. The type of the data is cross-sectional household level data with 120 respondents. The methodology used to assess the determinants of adoption is Logit Model, while to assess the income effect of adoption is Propensity Score Matching. The results found that age and level of education are determined to be the factors that highly influence the adoption decision, and farmers who adopt the planting system have a higher opportunity of income increase than those who do not adopt.