The creativity of farmers participating in contract farming to drive the economic activities of rural area
Downloads
This study elaborates on the creativity of melon farmers to overcome problems and gain benefits in this inherently high-risk farming. The research was conducted in the villages of Plumpang District, an area in East Java known for its quality melon produce. Data were collected from 100 respondents from these villages. Respondents were selected purposively by considering demographic and farming characteristics. The relationship between contract farming and farmer creativity was examined using Spearman Rank analysis. Statistical test confirms the relationship between contract farming practices and melon farmers’ creativity. The low correlation is due to the determining factor, namely, extreme climatic conditions, which have a damaging impact on crops. Furthermore, an increase in investment ranks first among the nine indicators of farmer creativity. This implies that contract farming practice is highly correlated with increased investment. Moreover, the majority (75%) of farmers’ profit from contract farming increases investment. This study concludes that these creative farmers empowered by contract farming promote economic activity in rural areas. These findings will be useful as a starting point for future research on the effects of contract farming as a driver of economic activity and its subsequent contribution to the sustainability of rural development.
Adam AG & Agegnehu AW (2023) Contract farming as an alternative to large‐scale land acquisition and promoting inclusive and responsible agricultural investment: Evidences from Ethiopia. Corporate Social Responsibility and Environmental Management 30 (6):2840-2851. https://doi.org/10.1002/csr.2519.
Arikunto S (2006) Prosedur Penelitian Suatu Pendekatan Praktik. Jakarta: Rineka Cipta.
Ayinke O (2011) Contract-farming in developing emerging farmers in South Africa: Exploring the Gled how Mansomini sugarcane scheme. Thesis, Stellenbosch University, Stellenbosch.
Baloyi JK (2010) An analysis of constraints facing smallholder farmers in the Agribusiness value chain: A case study of farmers in the Limpopo Province. Dissertation, University of Pretoria, Pretoria. https://repository.up.ac.za/handle/2263/29038.
Barik P & Bedamatta R (2025) Is contract farming fair for smallholder farmers? A case study from India. Journal of Contemporary Asia 1-23. https://doi.org/10.1080/00472336.2025.2470871.
Berdegué JA, Biénabe E, & Peppelenbos L (2008) Keys to the Inclusion of small-scale producers in dynamic markets–Innovative practice in connecting small-scale producers with dynamic markets. Recovering Markets Innovative.
Bijman J (2008) Contract Farming in Developing Countries an Overview. Wageningen: Wageningen University, Department of Business Administration.
Bogetoft P & Olesen HB (2004) Design of Production Contracts: Lessons from theory and agriculture. Copenhagen: Copenhagen Business School Press.
Chen J & Chen Y (2021) The impact of contract farming on agricultural product supply in developing economies. Production and Operations Management 30 (8). https://doi.org/10.1111/poms.13382.
Da Silva CA & Rankin M (ed) (2013) Contract Farming for Inclusive Market Access. Rome: FAO. http://tinyurl.com/peak29m.
Eaton C & Shepherd AW (2001) Contract Farming: Partnerships for Growth. FAO Agricultural Services. Bulletin 145, Food and Agricultural Organisation of the United Nations, Rome.
Fischer E & Qaim M (2012) Linking smallholders to markets: determinants and Impacts of farmer collective action in Kenya. World Development 40 (6):1255-1268. https://doi.org/10.1016/j.worlddev.2011.11.018.
Gao Z, Liu X, & Zhang X (2024) The impact of tie strength on the sustainable participation of farmers in contract farming: An empirical study in inner mongolia, China. Sustainability 16 (4):1538-1538. https://doi.org/10.3390/su16041538.
Glover DJ & Kunsterer K (1990) Small Farmer, Big Business: Contract Farming and Rural Development. London: Springer.
Groenewald JA, Gundidza MB, Maiwashe AN, Mmbengwa VM, Ramukumba T, & Van Schalkwyk HD (2012) Analysis of the socio-economic factors that contribute to land and agrarian reform which initiated and supported small, micro, medium farming enterprises (SMMES) in South Africa. African Journal of Business Management 6 (24):7158-7169. https://doi.org/10.5897/AJBM11.1769.
Ha TM, Bosch OJ, & Nguyen NC (2015) Systemic interventions addressing market access challenges of smallholder vegetable farmers in Northern Vietnam. International Journal of Markets and Business Systems 1 (2):136-158. https://doi.org/10.1504/IJMABS.2015.072262.
Hoang V & Nguyen V (2023) Determinants of small farmers’ participation in contract farming in developing countries: A study in Vietnam. Agribusiness 39 (3). https://doi.org/10.1002/agr.21795.
Hoang V (2021) Impact of contract farming on farmers’ income in the food value chain: A theoretical analysis and empirical study in Vietnam. Agriculture 11 (8):797. https://doi.org/10.3390/agriculture11080797.
Hueth B, Ligon E, Wolf S, & Wu S (1999) Incentive instruments in fruit and vegetable contracts: Input, control, monitoring, measuring, and price risk. Applied Economic Perspective and Policy 21 (2):374-389. https://doi.org/10.2307/1349886.
Ikeda S & Natawidjaja RS (2022) The Sustainability of Contract Farming with Specialized Suppliers to Modern Retailers: Insights from Vegetable Marketing in Indonesia. Agriculture 12 (3):380. https://doi.org/10.3390/agriculture12030380.
Jia X & Bijman J (2013) Contract farming: Synthetic themes for linking farmers to demanding markets. In: da Silva CA & Ranking M. Contract Farming for Inclusive Market Access. Institute of Geographic Sciences and Natural Resources Research, Beijing, China. 21-38.
Johanson RK & Saint W (2007) Cultivating knowledge and skill to grow African agriculture: A Synthesis of institutional, regional and international review. Washington DC: WorldBank. http://documents.worldbank.org/curated/en/629031468340199694/Cultivating-.
Kaur P & Singla N (2024) Empirical gains from growing potato under contract farming in Punjab, India. Potato Research 68 (1). https://doi.org/10.1007/s11540-024-09762-9.
Li Q & Wang Z (2024) Impact of contract farming on green technological efficiency of farmers: A comparative study of two contract organizational models. Frontiers in Sustainable Food Systems 8. https://doi.org/10.3389/fsufs.2024.1368997.
Liang Y, Bi W, & Zhang Y (2023) Can contract farming improve farmers’ technical efficiency and income? Evidence from beef cattle farmers in China. Frontiers in Sustainable Food Systems 7. https://doi.org/10.3389/fsufs.2023.117942.
Louw A, Vermeulen H, Kirsten J, & Madevu1 H (2007) Securing small farmer participation in supermarket supply chains in South Africa. Development Southern Africa 24 (4):539-551. https://doi.org/10.1080/03768350701577657.
Machimu GM (2024) Next steps for smallholder sugarcane contract farmers in developing countries: A review. Social Sciences & Humanities Open 9 (2024):100865. https://doi.org/10.1016/j.ssaho.2024.100865.
Meemken E-M & Bellemare MF (2020) Smallholder farmers and contract farming in developing countries. Proceedings of the National Academy of Sciences 117 (1):259-264. https://doi.org/10.1073/pnas.1909501116.
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.
Minot N (2012) Food price volatility in Africa: Has it really increased? IFPRI Discussion Paper 01239. http://dx.doi.org/10.2139/ssrn.2197406.
Minot NW (1986) Contract farming and its effects on small farmers in less-developed countries. Working Paper. Michigan State University, Department of Agriculture Economic.
Musa K, Van Niekerk P, & Retief CP (2018) Challenges of contract farming among small-scale commercial vegetable farmers in Eastern Cape South Africa. Journal of Agricultural Extension 22 (3):195. https://doi.org/10.4314/jae.v22i3.19.
Ndiritu SW (2024) Smallholder farmers’ dissatisfaction with contract farming: A gendered perspective. Development in Practice 34 (6):708-719. https://doi.org/10.1080/09614524.2024.2344526.
Olounlade OA, Li G-C, Kokoye SEH, Dossouhoui FV, Akpa KAA, Anshiso D, & Biaou G (2020) Impact of participation in contract farming on smallholder farmers’ income and food security in rural Benin: PSM and LATE parameter combined. Sustainability 12 (3):901. https://doi.org/10.3390/su12030901.
Ortmann GF & King RP (2010) Research on agri-food supply chains in Southern Africainvolving small-scale farmers: Current status and future possibilities. Agrecon 49 (4):397-417. https://hdl.handle.net/10520/EJC18455.
Patrick I (2004) Contract-farming in Indonesia: Smallholders and agribusiness working together. Australian Centre for International Agricultural Research Canberra, University of New England.
Pope C, Ziebland S & Mays N (2000) Qualitative research in health care. Analysing Qualitative Data. British Medical Journal 320 (7227): 114-116. https://doi.org/10.1136/bmj.320.7227.114.
Prowse M (2012) Contract Farming in Developing Countries: A Review (A savoir, vol 12). Paris: AFD Agence.
Qiao M, Wang J, & Wang B (2025) How does credit guarantee promote the organized participation of smallholder farmers in agricultural production outsourcing? Frontiers in Sustainable Food Systems 9 (2025). https://doi.org/10.3389/fsufs.2025.1496902.
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.
Ruml A, Ragasa C, & Qaim M (2021) Contract farming, contract design and smallholder livelihoods. Australian Journal of Agricultural and Resource Economics 66 (1):24-43. https://doi.org/10.1111/1467-8489.12462.
Rustinsyah & Prasetyo RA (2019) Stakeholder engagement in a water user association for agricultural irrigation management in the villages in Indonesia. Journal of Water and Land Development 40 (I-III):181-191. https://doi.org/10.2478/JWLD-2019-0020.
Sapbamrer R & Thammachai A (2021) A systematic review of factors influencing farmers’ adoption of organic farming. Sustainability 13 (7):3842. https://doi.org/10.3390/su13073842.
Schalkwyk HDV, Obi A, Tilburg AV, & Fraser G (2011) Unlocking Markets to Smallholders: Lessons from South Africa. The Netherlands: Mansholt Publication series.
Shiimi T, Taljaard PR & Jordaan H (2012) Transaction costs and cattle farmers’ choice of marketing channel in North-Central Namibia. Agrecon 51 (1):42-58. https://doi.org/10.1080/03031853.2012.649543
Sivaramakrishnan S & Jyotishi A (2008) Monopsonistic exploitation in contract farming: Articulating strategies for farmer cooperation. Journal of International Development 20 (2):280-296. https://doi.org/10.1002/jid.1411.
Sugiyono (2009) Metode Penelitian Kuantitatif dan Kualitatif. Bandung: Alfabeta.
Taslim A, Karim MR, & Rahman MS (2021) Factors influencing participation of farmer in contract farming in Narsingdi District of Bangladesh. Asian Journal of Agricultural Extension, Economics & Sociology 39 (11):569-576. https://doi.org/10.9734/ajaees/2021/v39i1130785.
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 (2020):121955. https://doi.org/10.1016/j.jclepro.2020.121955.
Van K & Freddy J (2024) Public and common interest in sustainable contract farming. World Development Perspectives 33 (2024):100564. https://doi.org/10.1016/j.wdp.2024.100564.
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, ITC-International Trade Centre, Geneva Karen Meijer. http://dx.doi.org/10.2139/ssrn.2184282.
Weituschat CS, Pascucci S, Materia VC, & Caracciolo F (2023) Can contract farming support sustainable intensification in agri-food value chains? Ecological Economics 211 (2023):107876. https://doi.org/10.1016/j.ecolecon.2023.107876.

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
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.