Journal of Tropical Rural Development
Vol. 3 No. 1 (2026): April 2026

Does Participation in Contract Farming Promote the Adoption of Sustainable Agriculture Practices? Evidence from Indonesian Rice Farmers

Shaleh, Mohammad Ilyas (Unknown)
Huang, Wen-Chi (Unknown)



Article Info

Publish Date
20 Apr 2026

Abstract

Methodology – Survey data from 212 rice farmers in Malang and Ngawi regencies, Indonesia, were analysed using Poisson regression with robust standard errors. Adoption intensity was measured as the number of practices adopted from a set of eight. Predictive margins and the average marginal effect were estimated. Methodology – Contract farming participation was positively and significantly associated with adoption. The adjusted expected SAP count was approximately 35.7% higher among contract farmers, corresponding to an average adjusted difference of 1.44 practices. Education, farm size, asset ownership, farmer group participation, and social activity showed positive associations, while market distance showed a negative association. Findings – Contract farming initiatives could be evaluated alongside training, access to sustainable inputs, farmer organizations, and improved market connectivity. The observational design limits causal interpretation. Implications – Contract farming initiatives could be evaluated alongside training, access to sustainable inputs, farmer organizations, and improved market connectivity. The observational design limits causal interpretation. Originality  –  This study combines an adoption count covering eight practices with adjusted predictions to characterize the association between contract participation and SAP adoption intensity in Indonesian rice farming.

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Journal Info

Abbrev

jtrd

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Education Social Sciences Transportation

Description

Journal of Tropical Rural Development JTRD is an academic journal published by Universitas Brawijaya. The journal focuses on advancing scholarly understanding of rural development issues in tropical regions through rigorous research and interdisciplinary perspectives. JTRD covers a wide range of ...