Agricultural and Fishery Business Diversification Model to Increase Household Income

Abstract

Agricultural and fishery business diversification is a critical strategy for rural households to cope with income uncertainty caused by commodity price fluctuations, climate change, and land limitations. This study aims to analyze the diversification model of farming and fishery businesses adopted by households in coastal areas and to measure its impact on household income improvement. The research was conducted in Gresik Regency, East Java, involving 120 households selected using stratified random sampling. Data were collected through structured interviews with validated questionnaires. Data analysis employed income analysis, multiple regression analysis, and business feasibility analysis (R/C ratio and B/C ratio). The results indicate that households implementing an integrated diversification model—combining shrimp pond  farming, milkfish aquaculture, and rice cultivation—achieved an average monthly income of IDR 8,750,000, which is 62.3% higher than households relying on a single business activity (IDR 5,390,000 per month). The R/C ratio of 2.87 for the integrated diversification model confirms significant business viability. Capital availability, access to technology, and membership in farmer-fisher groups significantly influenced household income levels (p < 0.05). This study concludes that an integrated agro-maritime-based business diversification model can sustainably improve household income and economic resilience.