Minister: Farmers' Terms of Trade hit 127.84 in July 2026, signalling stronger welfare

Agriculture Minister Andi Amran Sulaiman stated that the Farmers’ Terms of Trade (NTP) reaching 127.84 in July 2026 is evidence that programmes to increase productivity, farming efficiency, and price stability are running effectively. Amran said this achievement was supported by various acceleration measures undertaken by the Ministry of Agriculture, ranging from increasing planting areas, land optimisation, irrigation rehabilitation and normalisation, provision of superior seeds, assistance with agricultural tools and machinery, to strengthening farmer mentoring in various production centre regions. “We want farmers to be increasingly prosperous, so the government is not only focused on increasing production but also ensuring that production yields have better economic value. When productivity rises and farmers’ prices improve, farmers’ welfare will increase,” the Minister said in a confirmed statement in Jakarta on Monday. He conveyed that the Ministry of Agriculture continues to strengthen various strategic programmes to increase productivity, maintain farming cost efficiency, and expand the absorption of harvest yields. According to him, strengthening these programmes aims to ensure that farmers’ production yields have better economic value, so that farmers’ incomes increase along with productivity and farming efficiency. These efforts are part of the government’s steps to improve farmers’ welfare, strengthen national food security, and encourage the agricultural sector to be more productive, competitive, and sustainable throughout Indonesia. “These efforts are expected to maintain the momentum of improving farmers’ welfare while strengthening national food security,” Amran said. The welfare of Indonesian farmers continues to show a positive trend. Statistics Indonesia (BPS) recorded that the Farmers’ Terms of Trade in July 2026 reached 127.84, up 0.15 per cent compared to June 2026. This increase reflects that farmers’ purchasing power remains maintained because the decline in costs incurred by farmers was greater than the decline in agricultural product prices. Meanwhile, BPS Deputy for Distribution and Services Statistics, Ateng Hartono, said the NTP increase in July 2026 occurred because the index of prices paid by farmers fell more sharply than the index of prices received. “The Agricultural Terms of Trade in July 2026 was recorded at 127.84, up 0.15 per cent compared to June 2026. The NTP increase occurred because the index of prices received by farmers fell by 0.10 per cent, while the index of prices paid by farmers fell more deeply, by 0.25 per cent,” Ateng said in Jakarta on Monday. Ateng explained that NTP is an indicator describing farmers’ ability or purchasing power. An increase in NTP shows that the terms of trade for agricultural products against goods and services consumed by households and production needs are in a better condition compared to the previous month. The national NTP increase in July 2026 was supported by improved performance in agricultural sub-sectors. The smallholder plantation sub-sector recorded the highest increase of 1.67 per cent, followed by food crops at 1.32 per cent. In the food crops sub-sector, the NTP increase was driven by rising prices of paddy and secondary crops, while in the smallholder plantation sub-sector it was influenced by strengthening prices of cocoa and palm oil commodities. Cumulatively, the welfare of Indonesian farmers continues to show a positive trend. As many as 26 out of 38 provinces recorded an NTP increase in July 2026, with Southeast Sulawesi recording the highest increase of 8.89 per cent. This surge in NTP signals that Indonesia’s agricultural sector is becoming stronger, more productive, and more profitable.