The aims of the research is to determine the impact of setting the lowest unit price of Arabica coffee on increasing farmers’ income in North Toraja Regency. The study was conducted in Buntu Pepasan Subdistrict, North Toraja Regency. Research data were collected carried out for three months, from June 2019 to September 2019. Sampling (respondents) of this study was conducted on farmers and key informants involved in the policy of setting the Lowest Unit Price for Arabica coffee commodities through the value added approach in Toraja Regency North. Research data were collected by conducted a survey using data collection techniques, such as interviews by using a questionnaire. Data analysis is descriptive quantitative. The results showed that with the determination of the Lowest Unit Price, the impact on farmers ‘income increased by IDR. 7,009,280 / farmer and farmers’ income per hectare, which was IDR. 3,721,741 / Ha. In addition, the determination of the Lowest Unit Price aims to improve the welfare of coffee’s farmers such as increasing the productivity of coffee fields, increasing the quality of beans and increasing regional income without harming other parties, namely the collecting traders and the Home Industry / Coffeshop (which also has a role as inter-island traders even exporters at the time of the study).

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