The most common problem encountered by many farmers from time to time is lacking of capital to cultivate their land or farms. In order to help solve this problem, the government through the Department of Agriculture has established a program of facilitation by implementing the policy of farmers’ empowerment program in the form of a loan to strengthen the capital for cultivation to the farmers’ groups. The objectives of this program are to make the farmers self-sufficient and the formation of micro financial institution which will open up an access to a formal funding institution. The aims of this study are to find out the impact of this farmers’ empowerment program in regard to the food security improvement program in Musi Rawas Regency and to find out the factors influencing the implementation of the program. The primary data for this study were obtained by way of interviewing the respondents and direct observation in the field, while the secondary data were obtained from the documents relevant to the subject of this study. The results of the study shows that the objective of the program in the form the farmers’ self-sufficiency which is indicated by the rolling of the fund to other farmers’ group cannot be achieved.
The only impact felt by the farmers who received the loan is that they could overcome the problem of lacking of capital for cultivating their land and an increase of production which is accompanied by an increase of income, although this increase of income is still unable to raise their level of prosperity. And the objective of establishing and developing a micro rural financial institution is not achieved either. The unexpected impact which arises from this program is the farmers’ dependence upon the government’s aid and the existence of sense of suspicion and lacking of trust between the members and the management of the farmers’ group. The factors which are responsible for the impact of the program, among others are environmental conditions of the farmers, such as the social and cultural backgrounds of the farmers, the relationship among organizations, the resources of the organization and the characteristics as well as the capability of the executing institution.