This study aims to assess the determinants of household welfare in agricultural sector in the Province of Aceh, Indonesia. 10,036 of the Agricultural Business Households (ABH) from the 2013 Farmer Income Survey of Indonesia were analyzed using the binary logistic regression technique. The study found that age, gender, education level of household head, number of family members, agricultural sub-sector, income diversification, marketing difficulties, utilization of received subsidies and land ownership statistically and significantly influenced the welfare of ABH. On the other hand, the variable of utilization of agricultural cooperative facilities was found to be statistically insignificant in effecting the welfare of ABH. The number of household members, marketing difficulties, gender and agriculture sub-sector have the greatest influence on the welfare of ABH. These findings suggested the importance of establishing a program to increase farmer productivity at young age, empower female farmers, increase the number of agricultural workers up to the village level, socialize family planning, increase the number of production from the horticulture, food crops, and husbandry sub-sectors. Empowerment of marketing of agricultural products, enhancement of the use of subsidy, land grants, and improvement of facilities and infrastructure of agricultural sector would also improve the welfare of farmers