The International Journal of Accounting and Business Society 37 Vol.27, No.1 April 2019 ©Centre for Indonesian Accounting and Management Research Brawijaya University ANALYZING THE MEANING OF CAPITAL FOR FARMERS Fia Rahma, Iwan Triyuwono, and Eko Ganis Sukoharsono Economic and Business Faculty, University of Brawijaya Abstract The objective of this research is to find out the meaning of capital for farmers, by using the logical reasoning analysis of bayani, burhani, and irfani initiated by Mohammad Abed Al Jabiri (1991). The process of finding out the meaning of capital by farmers is conducted by knowing and analyzing the capital of the informants obtained through in-depth interview and observation, using three types of logical reasoning which are bayani, burhani, and irfani. Through bayani logical reasoning, the researchers got the symbol of the meaning of capital conveyed by the informants and is examined by the text approach. Moreover, through burhani logical reasoning, analysis, the researchers explored the facts, conditions, and background of the informants' lives. The final step of data analysis in this research was gained through the irfani logical reasoning approach that was applied by the synchronization process of all information obtained using the researchers’ clarity of conscience to be able to draw a comprehensive conclusion. This research found the meaning of capital for Smartani group farmers is combination material capital and the determination to apply the science and experience in managing the resources they own well, by maintaining relationship with colleagues and community for the continuity of the farming business. Keywords: capital, farmers, bayani, burhani, irfani INTRODUCTION Indonesia is known as an agricultural country, where agriculture plays a strategic role in the process of economic development 1 (Johnston and Mellor, 1961). However, as time goes on, the Indonesian agricultural sector seems to be marginalized, ostracized, and considered less bona fide. This is proven in the lack of interest of the youth to preserve the "culture" of farming which is full of values, customs, and national identity 2 . The downfall of the agricultural sector was aggravated by the fact that the increase of food production done by the Ministry of Agriculture, was inversely proportional to the increase of poverty dominated by farmers, caused by several factors, from lack of capital and small landlord (Amir et al., 2014). The researchers underline that the downfall of the agricultural sector is caused by capital factors. Capital is part of an accounting symbol, which is defined as the amount of money or goods used in a business. However, the meaning 1 The ministry of agriculture in the performance report Kementan 2015 stated that the agricultural sector was the second largest contributor to GDP (13,49%) 2 The ministry of agriculture on its performance's report in 2015 stated, the employment in the agricultural sector within the last five years has been reduced as much as 10,08%