*4.2. Mediating Influence of Farm Business Performance (Indirect Influence)*

Agricultural development's influence on rural poverty alleviation in the North Buton Regency through the mediation of farm business performance was analyzed using the path coefficient difference approach (Solimun 2012).

The mediating variable on farm business performance was identified by comparing the influence of agricultural development on rural poverty alleviation without a mediating variable to the one involving a mediating variable (Hair et al. 2017).

The results in Figure 10 show the influence of agricultural development on rural poverty alleviation:


**Figure 10.** Mediating Variable Test.

The influence of agricultural development on rural poverty alleviation is more significant when supported by improved farm business performance. This was indicated by the difference in the path coefficient, where the direct influence of agricultural development on poverty alleviation was 0.52. When the influence was made through improved farm business performance, the path coefficient rose to 0.95 or 95%. Therefore, this result shows that agricultural development significantly influences poverty alleviation mediated by improved farm business performance in the North Buton Regency.

#### **5. Conclusions and Recommendations**

#### *5.1. Conclusions*

Agricultural development mediated by the construction of rural infrastructure facilities and the development of farmers' resources improves farm business performance. The development mediated by agricultural infrastructure facilities and rural farmers' resources

affects rural poverty alleviation. Furthermore, improving the agricultural business performance significantly influences rural poverty alleviation in the North Buton Regency. This means that agricultural development directly and indirectly influences rural poverty alleviation.
