The adoption of sustainable land management (SLM) practices by smallholders is a critical issue in agricultural environmental economics, given land degradation pressures and limited household economic capacity. This study analyzes smallholders’ economic behavior in adopting SLM and identifies key economic factors influencing their decisions. Using a mixed-methods approach, data were collected from a structured survey of 60 smallholders in Malang Regency, East Java, and in-depth interviews with five key informants. Quantitative data were analyzed with descriptive statistics and logit regression, while qualitative data were thematically analyzed. Results show that farming income, adoption costs, access to agricultural information, and risk perception significantly affect adoption decisions. These findings indicate that smallholders act economically rationally, weighing trade-offs between short-term profits and long-term sustainability. The study contributes to environmental economics literature by highlighting the need for incentive policies aligned with smallholders’ economic realities to promote effective adoption of sustainable agricultural practices.
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