Revolutionizing Farming: Exploring the Complex Relationship between Agricultural Machinery, Technology Progress, and Farmers' Income in Developing Nations

Abstract

This study examines the impact of agricultural mechanization utilization, agriculture insurance, and access to extension services on farmers' income in developing nations through the role of farm productivity as a mediator. The study also investigates the moderating effect of technological advancement on the relationship between farm productivity and farmer income. The research employs a quantitative methodology, surveying Indonesian farmers. The utilization of agricultural machinery, agriculture insurance, and access to extension services positively affect farm productivity, which mediates the relationship between these factors and farmers' income, according to the analysis results. In addition, the study demonstrates that advances in agricultural technology moderate the correlation between farm productivity and farmer income. Consequently, the findings imply that policymakers should prioritize improving access to agricultural machinery, insurance, and extension services to increase farm productivity and farmers' income. In addition, policymakers must encourage the adoption of sophisticated agricultural technologies to facilitate productivity gains, particularly in developing nations.