Determining sustainability in contract farming: An evidence of melon farmers from Klotok Village, Plumpang District, Tuban Regency, Indonesia
Downloads
The main problems of small farmers who plant melons in open and intensive agricultural land are capital, technology, and markets. One way to overcome the problem is by establishing contract farming with a sponsor. Relationships with sponsors do not always benefit economically. For this purpose, this study was carried out on the indicators that determine the sustainability of contract farming between melon farmers and sponsors in Klotok Village, Plumpang District, Tuban Regency, Indonesia. The study was conducted using a combination of qualitative and quantitative approaches. The results showed that of the three contract farming indicators, equity has the highest correlation value (0.302). It illustrates that the equality of farmers and sponsors is a crucial aspect for the sustainability of farming contracts. Even the dimensions of mutual benefit have low correlation values (0.296). It was shown by some farmers who suffered losses but did not break relations with the sponsors. This study concludes that the presence of sponsors plays an important role in the activities of melon farmers. The sustainability of melon farmers can drive rural economic activities and can further improve the welfare of the rural population.
Arikunto S (2006) Prosedur Penelitian Suatu Pendekatan Praktik. Jakarta: PT. Rineka Cipta.
Arouna A, Michler JD, & Lokossou JC (2021) Contract farming and rural transformation: Evidence from a field experiment in Benin. Journal of Development Economics 151 (February). https://doi.org/10.1016/j.jdeveco.2021.102626.
Azumah SB, Donkoh SA, & Ansah IGK (2017) Contract farming and the adoption of climate change coping and adaptation strategies in the northern region of Ghana. Environment, Development and Sustainability 19 (6):2275-2295. https://doi.org/10.1007/s10668-016-9854-z.
Azwar S (2012) Reliabilitas dan Validitas. Yogyakarta: Pustaka Pelajar.
Behera HC, Kodirekkala KR, & Sinha AA (2021) Small and marginal farmers' participation in potato contract farming in West Bengal, India. Journal of Asian and African Studies 1-21. https://doi.org/10.1177/00219096211025074.
Bellemare MF & Bloem JR (2018) Does contract farming improve welfare? A review. World Development 112:259-271. https://doi.org/10.1016/j.worlddev.2018.08.018.
Bellemare MF, Lee YN, & Novak L (2021) Contract farming as partial insurance. World Development 140. https://doi.org/10.1016/j.worlddev.2020.105274.
Bijman J (2008) Contract Farming in Developing Countries: An Overview. Wageningen: Wageningen University & Research.
Bose AK (2013) Issues of landlessness, contract and corporate farming. Journal of Land and Rural Studies 1 (1):25-39. https://doi.org/10.1177/2321024913483037.
Chakraborty D (2009) Contract farming in India: Unique solution to multilayer agricultural problems? Review of Market Integration 1 (1):83-102. https://doi.org/10.1177/097492920900100105.
Eaton C & Shepherd A (2001) Contract Farming: Partnerships for Growth. Rome: FAO.
FAO (2013) Contract Farming for Inclusive Market Access. Rome: FAO.
Fullbrook D (2007) Contract farming in Lao PDR: Cases and questions. Laos Extension for Agriculture Project (LEAP), National Agriculture and Forestry Extension Service (NAFES). http://lad.nafri.org.la/fulltext/1580-0.pdf.
Gatto M, Wollni M, Asnawi R, & Qaim M (2017) Oil palm boom, contract farming, and rural economic development: Village-level evidence from Indonesia. World Development 95:127-140. https://doi.org/10.1016/j.worlddev.2017.02.013.
Gramzow A, Batt PJ, Afari-Sefa V, Petrick M, & Roothaert R (2018) Linking smallholder vegetable producers to markets - A comparison of a vegetable producer group and a contract-farming arrangement in the Lushoto District of Tanzania. Journal of Rural Studies 63 (July):168-179. https://doi.org/10.1016/j.jrurstud.2018.07.011.
Harilal KN (2021) Globalization of agriculture and atomization of farming: Small farms crisis in Asia. Millennial Asia 12 (3):298-315. https://doi.org/10.1177/09763996211059964.
Kaur P, Singla N, & Singh S (2021) Role of contract farming in crop diversification and employment generation: Empirical evidence from Indian Punjab. Millennial Asia 12 (3):350-366. https://doi.org/10.1177/09763996211051300.
Khan MF, Nakano Y, & Kurosaki T (2019) Impact of contract farming on land productivity and income of maize and potato growers in Pakistan. Food Policy 85 (November):28-39. https://doi.org/10.1016/j.foodpol.2019.04.004.
Kumar N (2012) Learning contract farming the banana way: A case study. International Journal of Rural Management 7 (1-2):121-131. https://doi.org/10.1177/0973005212459831.
Levinger B & Mulroy J (2004) A Partnership Model for Public Health: Five Variables for Productive Collaboration. Washington, DC: CORE, Pact Publications.
Minot N & Ronchi L (2015) Contract farming: Risks and benefits of partnership between farmers and firms. Viewpoint: Public Policy for the Private Sector No. 344. Washington, DC: World Bank. https://www.wbginvestmentclimate.org/advisory-services/investment-generation/agribusiness/upload/VP_344-Contract-Farming.pdf.
Mishra AK, Kumar A, Joshi PK, D'Souza A, & Tripathi G (2018) How can organic rice be a boon to smallholders? Evidence from contract farming in India. Food Policy 75 (January):147-157. https://doi.org/10.1016/j.foodpol.2018.01.007.
Motiram S & Vakulabharanam V (2007) Corporate and cooperative solutions for the agrarian crisis in developing countries. Review of Radical Political Economics 39 (3):360-367. https://doi.org/10.1177/0486613407305284.
Openstreetmap.org (2022) Map of Plumpang District. [Accessed 21 February 2022]. https://www.openstreetmap.org/relation/13072118.
Patrick I (2004) Contract farming in Indonesia: Smallholders and agribusiness working together. [Accessed 21 February 2022]. https://www.rfilc.org/wp-content/uploads/2020/08/1120037627274_contract_farming_Indonesia.pdf.
Pope C, Ziebland S, & Mays N (2000) Qualitative research in health care: Analysing qualitative data.
BMJ: British Medical Journal 320 (7227):114-116.
Prowse M (2012) Contract Farming in Developing Countries: A Review. Paris: AFD, Agence française de développement.
Ramadhan TA (2021) Gula: Program Tebu Rakyat Intensifikasi (TRI) 1975 dan pengaruhnya terhadap petani tebu. HISTORIA: Jurnal Program Studi Pendidikan Sejarah 9 (1):55-64.
Ray N, Clarke G, & Waley P (2021) The impact of contract farming on the welfare and livelihoods of farmers: A village case study from West Bengal. Journal of Rural Studies 86 (June):127-135.
https://doi.org/10.1016/j.jrurstud.2021.06.003.
Reardon T & Berdegue JA (2002) The rapid rise of supermarkets in Latin America: Challenges and opportunities for development. Development Policy Review 20 (4):317-334.
Rehber E (2004) Vertical integration in the food industry and contract farming: The case of Turkey. Outlook on Agriculture 33 (2):85-91. https://doi.org/10.5367/000000004773973064.
Sarkar S (2014) Contract farming and McKinsey's plan for transforming agriculture into agribusiness in West Bengal. Journal of South Asian Development 9 (3):235-251. https://doi.
org/10.1177/0973174114549100.
Singarimbun M & Effendi S (1982) Metode Penelitian Survey. Jakarta: LP3ES.
Sivramkrishnan S & Jyotishi A (2008) Monopsonistic exploitation in contract farming: Articulating strategies for farmer cooperation. Journal of International Development 20 (2):280-296.
Soullier G & Moustier P (2018) Impacts of contract farming in domestic grain chains on farmer income and food insecurity. Contrasted evidence from Senegal. Food Policy 79 (September):179-198. https://doi.org/10.1016/j.foodpol.2018.07.004.
Sugiyono (2008) Metode Penelitian Pendidikan: Pendekatan Kuantitatif, Kualitatif dan R&D. Bandung: Alfabeta.
Sugiyono (2012) Understanding Qualitative Research. Bandung: Alfabeta.
Swain BB (2018) Determinant in intensity of farmers' participation in contract farming: The study of gherkin and hybrid paddy seed cultivation in a South Indian State. Journal of Land and Rural Studies 6 (2):170-190. https://doi.org/10.1177/2321024918766585.
Ton G, Vellema W, Desiere S, Weituschat S, & D'Haese M (2018) Contract farming for improving smallholder incomes: What can we learn from effectiveness studies? World Development 104:46-64. https://doi.org/10.1016/j.worlddev.2017.11.015.
Trebbin A & Hassler M (2012) Farmers' producer companies in India: A new concept for collective action? Environment and Planning A 44 (2):411-427. https://doi.org/10.1068/a44143.
Vamuloh VV, Kozak RA, & Panwar R (2020) Voices unheard: Barriers to and opportunities for small farmers' participation in oil palm contract farming. Journal of Cleaner Production 275:121955. https://doi.org/10.1016/j.jclepro.2020.121955.
Väth SJ, Gobien S, & Kirk M (2019) Socio-economic well-being, contract farming and property rights: Evidence from Ghana. Land Use Policy 81 (April):878-888. https://doi.org/10.1016/j.landusepol.2017.04.023.
Vicol M (2017) Is contract farming an inclusive alternative to land grabbing? The case of potato contract farming in Maharashtra, India. Geoforum 85 (July): 157-166. https://doi.org/10.1016/j.geoforum.2017.07.012.
Von Hagen O & Alvarez G (2011) The impacts of private standards on global value chains - Literature review series on the impacts of private standards, Part I. International Trade Centre. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2184282.
Wuepper D & Sauer J (2016) Explaining the performance of contract farming in Ghana: The role of self-efficacy and social capital. Food Policy 62:11-27. https://doi.org/10.1016/j.foodpol.2016.05.003.
Ze-ying H, Ying X, Di Z, Chen W, & Ji-min W (2018) One size fits all? Contract farming among broiler producers in China. Journal of Integrative Agriculture 17 (2):473-482. https://doi.org/10.1016/S2095-3119(17)61752-0.
Zhang QF & Donaldson JA (2010) From peasants to farmers: Peasant differentiation, labor regimes, and land-rights institutions in China's agrarian transition. Politics and Society 38 (4):458-489. https://doi.org/10.1177/0032329210381236.
Copyright of this journal is possession of Editorial Board and Journal Manager, by the knowledge of the author, while the moral right of the publication belongs to the author.
The formal legal aspect of journal publication accessibility refers to Creative Commons Attribution-NonCommercial-ShareAlike (CC BY-NC-SA), implies that publication can be used for non-commercial purposes in its original form (cannot be modified).
Every publication (printed/electronic) are open access for educational purposes, research, and library. Other than the aims mentioned above, the editorial board is not responsible for copyright violation.
