An Analysis of Smallholder Farmers’ Economic Efficiency and The Role of Zakat Management Organizations in Achieving SDG 1 in Kediri
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Keywords:
Economic Efficiency; Smallholder Farmers; Amil Zakat; SDGs; Kediri RegencyAbstract
This study aims to analyze the level of economic efficiency among smallholder farmers and the role of Zakat Management Organizations (ZMOs) in supporting the achievement of SDG 1: No Poverty, in Kediri Regency. The research employs a mixed-method approach combining quantitative and qualitative analyses. The quantitative analysis uses the Data Envelopment Analysis (DEA) method with the Banxia Frontier Analysis (BFA) to measure the farmers’ economic efficiency based on farm input-output data. Meanwhile, the qualitative analysis conducted through in-depth interviews with several ZMOs to explore their roles and contributions in poverty alleviation. The findings reveal that there are noticeable disparities in resource utilization among them. The main sources of inefficiency founded in the harvesting stage and the management of production cost. The programs of ZMOs aligns with the principles of Islamic economics in wealth redistribution and empowerment of vulnerable groups, directly supporting the realization of SDG 1: No Poverty. However, ZMOs have not yet targeted many smallholder farmers. ZMOs can play a vital role in improving farmers’ welfare through both consumptive and productive programs, training, and community-based empowerment. ZMOs are expected to design productive farmer empowerment programs based on technical assistance, equipment, and financial support to enhance smallholder farmers' efficiency.
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