ABSTRACT
This chapter examines the extent of adoption of high-yielding rice varieties, chemical fertilizers, and pesticides; the degree of success in terms of production and income; and the direct and indirect impact on village-wide income, absolute and relative. The basic data is collected through household sample surveys from one village in West Sumatra and one village in South Sulawesi. In the two case studies, a number of measures are utilized in examining changes in economic conditions attendant upon the introduction of new agricultural technologies. The analysis includes consideration of the fact that regional, local and even national governments, through policies of taxation and expenditures, can redistribute the gains of increased production. If increased production leads to increased net incomes for farmers, the additional income may be consumed or saved in the form produced or exchanged directly or converted to cash and used for other items, savings, or investment.
