<![CDATA[The agricultural sector plays a crucial role in supporting livelihoods, improving farmers' welfare, contributing to economic development and growth, and ensuring food security and product competitiveness. Riau Province has designated oil palm as its superior commodity to boost economic growth and enhance the welfare of both farmers and the general public. Initially, oil palm cultivation was primarily undertaken in dryland areas, which were considered more efficient in terms of input costs and output factors. Throughout its development, the oil palm industry continued to expand, supplying raw materials for downstream industries and becoming a commodity that serves as an economic stabiliser, offering a higher level of prosperity than other commodity crops. Consequently, as available dry land became fully utilised, the expansion of oil palm cultivation shifted towards wetlands (swampland). The objective of this study is to calculate and compare the farmer exchange rate (NTP) for independent smallholder oil palm plantations across both land topologies (upland and wetland). The results are then compared with the general agricultural NTP and sectoral NTP. The method employed to determine the NTP for independent smallholder oil palm farmers involves calculating the ratio of the price index received by farmers (It) to the price index paid by farmers (Ib). The difference between it and IB is that it is one of the most recognised and widely used macroeconomic indicators for agricultural development in Indonesia. The data utilised includes primary data obtained from direct interviews with farmers and secondary data from various sources. The study's findings indicate that farmers on dryland (upland) topologies have higher land productivity, income, and NTP than those on wetland topologies. Overall, the welfare of oil palm farmers in upland areas is better than that of those in wetland areas, primarily due to the high input costs and low output prices experienced by wetland farmers]]>
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