Institutional transformation in rural areas has been carried out through development the combined of farmer groups into farmer economic institutions. The research aims to analyze the capacity, role and performance, analyze the determinants of performance and develop strategies to improve performance the institutional of farmers' economy. The research has been conducted in Sukabumi Regency from August to November 2016. The research population is farmer who become member of farmer economic institution and the sample in this research is 80 people taken using stratified random sampling technique. Data were taken using questionnaires with instruments in the form of rating scale. The independent variables consist of individual characteristics, institutional capacity and institutional role and dependent variable is farmer economic institution performance. Data analysis used descriptive statistics and spearman correlation statistics. The result of this research can be concluded that the achievement of institutional capacity, institutional role and performance of farmer economic institution are 81, 25%, 80, 5% and 79, 5% respectively. The determinants of institutional economic performance of farmers are age, education, length of business, land area, social status, capacity and role of the combined farmer groups. The performance of farmers' economic institutions can be improved through optimizing the involvement of young farmers, farmers with relatively higher levels of education, increasing extension activities, training and apprenticeship; Enhance the capacity of the board and members; And intensive assistance to optimize the role of gapoktan as an economic institution of farmers.
