The Influence of Social Capital on The Effectiveness of Farmers’ Group Functions

Abstract

The aim of this study was to analyse the influence of social capital on the effectiveness of farmers’ group functions. It was conducted in the Ettawah Crossbreed farmers who joined farmers’ group in Turi district, determined purposively which has several conditions and certain provisions. The method was surveyed with a questionnaire as a tool to collect data, then analyzed by regression analysis. Most farmer respondents stated that the social capital (trust = 92.31%; norm = 73.08%; and network = 57.69%) and the effectiveness of the farmers’ group function (as a class to learn = 73.08%; as a place to cooperate = 88.46%; as a production unit = 69.23%; and as a business unit = 65.38%) were in the middle category level. The regression analysis result showed social capital was significantly influencing the effectiveness of farmers’ group functions (P<0,05) with R²=0.508; β=0.327; F=24.742; t=4.974. Social capital allowed the farmers to do social interaction, work together and have a resource as a group. Joining the same group made the farmers know and trust each other. Trust helped the farmers to feel secure to do group functions as a class to learn, as a place to cooperate, and as a production unit and as a business unit. Norms that were formed by trust, could strengthen the network between the farmers. Thus, a group could be more flexible while implementing the functions, so that the farmers could achieve their individual goals as well as the group goals.