Economic valuation of paddy fields: Employment services providers for farmers

Abstract

Agricultural land conversion (ALC) is economically profitable, but what the community does not pay attention to is the losses caused by the ALC. Economic valuation is one way to calculate the multifunctionality of paddy fields that have overall economic value, including the production function, provider of environmental products/services and socio-culture. This study aims at determining the economic value of paddy fields as employment services providers for farmers. The analytical method employed was the economic valuation. Research result: It shows that the conversion of paddy fields in Pasuruan Regency in 2014-2019 is quite high, averaging 777.7 Ha per year. The economic value of rice fields as an employment services provider in 2019 is IDR 1,922,772,319,000. This value tends to decline due to land conversion since 2014.