Abstract:
Farmer terms of trade rate is one of the indicators in determining the price of
farmers production. This reseach is a case study on the farmer terms of trade in
Riau Province using the correlation coefficient between the relavant variables.
The data used is from the Central Statistics Agency for the period January 2016 –
December 2019 with the dependent variable being the farmer exchange rate and
the independent variables, namely: the price index received by farmers, the price
index paid by farmers, household consumption, and production costs and
additional capital goods. The correlation cofficient used is the Pearson,
Spearman-rho, and Kendall-tau correlation coefficient to see the correlation, the
degree of relationship, and the direction of the relationship and determine the
variables that most influence the farmer terms of trade. Based on the results of the
research, it was concluded that the cost of production and additional of capital
goods were the variables that most effected the farmer terms of trade
