Impact and Sustainability of lntegreted Agriculture Development Project (IADA): A Structural Equation Model (SEM) Analysis

Abstract

Paddy farming isa key agenda in achieving food security in Malaysia. One of the govemmenrs policies for achieving this goal is through the establishment of the Northern Terengganu Integrated Development Project (IADA KETARA). This study is intended to clarify the effects of IADA KETARA on sustainable paddy farming based on economic, social and environmental aspects. For the purpose of this study, a total of 425 rice farmers were selected as respondents for their perceptions related to the purpose of the study. Determinants of agricultural sustainability were analyzed according to the methods of structural equation modeling (SEM) using the AMOS program. The results showed that the capacity of economic factors have a positive effect (0.011) on the sustainability of rice farming in IADA KETARA while loading factors forsocial and environmental elements also have a negative effect (-0.028 and -0.067).