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Journal : JEJAK

Asymmetric Information And Farmer’s Participation In Tobacco Contract Farming Rondhi, Mohammad; Imelda, Sisca; Setyawan, Hendrik; Aji, Joni Murti Mulyo; Hariyati, Yuli; M, Mustapit; Raharto, Sugeng; Fauziah, Diana; Kusmiati, Ati
JEJAK: Jurnal Ekonomi dan Kebijakan Vol 13, No 1 (2020): March 2020
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/jejak.v13i1.17413

Abstract

Contract farming (CF) is an important tool to initiate structural transformation of agricultural sector in developing countries. However, one of pertinent problems in its establishment is asymmetric information. This problem creates a condition of mutual distrust between the contracting parties and decreases farmer’s participation in it. Thus, this study aimed to explain the asymmetric information problem in CF and find the correlates of farmer’s participation in it. As one of important industrial crops, this study focused on tobacco CF. This study was conducted at two villages (Antirogo and Nogosari) on two different sub-district (Sumbersari and Rambipuji) in Jember. A sample of 113 farmers were interviewed to collect the data. A descriptive analysis was used to explain the contract arrangement and asymmetric information in tobacco CF. A probit estimation was used to identify the coorelates of farmer’s participation in tobacco CF. The results showed that asymetric information does exists in tobacco CF and can be minimized through intense monitoring and increased transparancy. Both of these are possible when the company contracting directly with farmers. Meanwhile, younger farmer and those with more land are more likely to participate in CF. Furthermore, participation in CF is highly correlated with the increases in farm income. Finally, policy aimed to fostering CF should focused more on regulation that minimize the transaction cost of CF. In addition, in the long term, the policy should focused on incentivize young farmers and encouraging youth to enter agriculture.
Co-Authors Abdur Rahman Adi, Ad Hariyanto Afri Prayudi Agus Supriono AGUSTIN, DWI Agustina, Titin Anggita Anugra Sari Ankardiansyah Pandu Pradana Antika Fahriatul Fauziah Astri Maesyaroh Ningtyas Ati Kusmiati Bagus Kuntadi, Ebban Cahyo Nur Muhammad Cahyo Nur Muhammad Dani Widjaya Despita Maharani, Mutiara Ria Desy Arindi Putri Regina Devara Efendy, Tafvian Didik Suharijadi Djoko Soejono Djoko Sumarno Dwi Erwin Kusbianto Dyah Ayu Savitri Ebban Bagus Kuntadi Evita Soleha Hani Evita Soliha Hani Evita Soliha Hani Fauziah, Diana Fauziyah, Diana Hani, Evita Soleha Hapsari, Triana Dewi Hendy Firmanto Himawan, Fadhli Nur Ibanah, Indah Ihda Fitriyah Imaniar Agustina Imelda, Sisca Indah Ibanah Joni Murti Mulyo Aji Kamil Muhtadi Kamila, Tati Zulfa Khasan, Ahmad Fatikhul Lestari Puji Rahayu, Lestari Puji M. Ghufron R Mochammad Wildan Djatmiko Mochammad Wildan Jadmiko Mochammad Wildan Jadmiko Mohammad Rondhi Mustapit Mustapit Mutiara Balquis Pamuji Nihliatun Ni'mah Nurlaili Nurlaili Panca Rahadi Mulyo Pramesti, Riska Ayu Priyo Sugeng Winarto Rachmi Masnilah Rahaditya Dimas P Rahaditya Dimas Prihadianto Rahman, Rena Yunita Rena Yunita Rena Yunita Rahman, Rena Yunita Ria, Vina Yunita Rida Fitriani Rokhani, Rokhani Rony, Zahara Tussoleha Rosyady, Muhammad Ghufron S, Setiyono Setiyono Setiyono Setyawan, Hendrik Sigit Soeparjono Sofia Sofia Sudarko Sudarko Sugeng Raharto Sugeng Winarso Sulasminingsih, Istiqomah Suwasono, Sony Syahroni, Maulid Dia Putri Tanti Matus Sholeha Titin Agustina Titis Luttiyana Vanya Pinkan Maridelana Vanya Pinkan Maridelana Yunita, Vina