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Journal : AGRARIS: Journal of Agribusiness and Rural Development Research

Assessing Determinants of Farmer’s Participation in Sugarcane Contract Farming in Indonesia Rokhani Rokhani; Mohammad Rondhi; Ebban Bagus Kuntadi; Joni Murti Mulyo Aji; Anik Suwandari; Agus Supriono; Triana Dewi Hapsari
AGRARIS: Journal of Agribusiness and Rural Development Research Vol 6, No 1: January-June 2020
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (1092.928 KB) | DOI: 10.18196/agr.6187

Abstract

The integrated value chain is a prerequisite for the successful industrialization of the agricultural sector. Contract farming (CF) is a useful instrument to integrate the agricultural value chain in developing countries such as Indonesia. The purpose of this study was to identify the determinants of farmer participation in sugarcane contract farming. The data utilized in this study was obtained from the Indonesian Plantation Farm Household Survey 2014 for Sugarcane. The data consists of 8.831 farmers distributed in 8 provinces. Logistic regression was used to estimate the determinants of farmer participation in sugarcane CF. The result shows that age, education, and type of cultivated land negatively affect farmer participation in sugarcane CF. Meanwhile, land tenure, cultivation area, cropping system, certified seed, membership in a cooperative, access to extension services, and membership in farmer’s association positively affect farmer participation in sugarcane CF. The policy implication for increasing farmer participation in CF is to intensify the information of CF to the farmer with a large cultivation area. Since these farmers tend to participate in CF to anticipate marketing risks.
The Effect of Agricultural Extension Access on The Performance of Smallholder Sugarcane Farmers in Indonesia Rokhani Rokhani; Ahmad Asrofi; Ad Hariyanto Adi; Ahmad Fatikhul Khasan; Mohammad Rondhi
AGRARIS: Journal of Agribusiness and Rural Development Research Vol 7, No 2: July-December 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (2156.463 KB) | DOI: 10.18196/agraris.v7i2.11224

Abstract

Agricultural extension plays a crucial role in the Indonesian Agricultural Revitalization Program for the 2005-2025 periods, where sugarcane is one of the fourteen priority crops. The provision of an agricultural extension was aimed to increase the income and productivity of sugarcane farmers. This study aimed to evaluate the effect of agricultural extension access on smallholder sugarcane farmers' performance in Indonesia. This study used data from the 2014 Indonesian Sugarcane Farm Household Survey, consisting of 8,831 farmers. This study employed propensity score matching to estimate the effect of access to an agricultural extension on several outcome variables. These variables were gross value-added (GVA), net value added (NVA), labor productivity (LP), land productivity (LDP), net income (NI), and remuneration of family labor (ROFL). The result shows that having access to an agricultural extension increases GVA by 40.5%, NVA by 40.3%, labor productivity by 42.8%, and NI by 40.2%. However, access to agricultural extension insignificantly affects ROFL due to the differences in family working units. Also, farmers with Agricultural Extension access have 13.7% lower land productivity than non-Agricultural Extension farmers since the former has lower input use intensity than the latter. These results suggest that providing agricultural extension service is adequate to improve sugarcane farmers' economic performance.