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Stepping up from subsistence to commercial intensive farming to enhance welfare of farmer households in Indonesia

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  • Joko Mariyono

Abstract

This article assesses the welfare impact of intensive chilli farming and determines the factors motivating farmers to engage in commercial farming. This study uses a structural equation model that measures the direct and indirect effects of explanatory variables on intensive chilli production and welfare. This study uses data of field surveys of randomly selected 220 farmers in three regions of Java. The results show that stepping up to intensive and profit†oriented farming improved farmers' welfare. Internal and external factors, directly and indirectly, affected farmers' decision to devote more resources to commercial chilli farming. Farmers' knowledge, as well as access to credit, technology adoption, marketplace, and traders, played significant roles in improving rural welfare. The government needs to reform marketing system of horticultural products and establish market infrastructures to accommodate oversupply during peak season. Easy and flexible credit should be available and accessible to farmers, with technology applicable to such agriculture.

Suggested Citation

  • Joko Mariyono, 2019. "Stepping up from subsistence to commercial intensive farming to enhance welfare of farmer households in Indonesia," Asia and the Pacific Policy Studies 201914, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:appswp:201914
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    File URL: https://onlinelibrary.wiley.com/doi/10.1002/app5.276
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    Cited by:

    1. Nurul Atiqah Binti Mohd Suib & Norlida Hanim Mohd Salleh & Mohd Fazim Ahmad, 2023. "The economic well-being of smallholders and challenges during COVID-19 pandemic: A review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(1), pages 35-44.
    2. Muflikh, Y.N. & Smith, C. & Brown, C. & Aziz, A.A., 2021. "Analysing price volatility in agricultural value chains using systems thinking: A case study of the Indonesian chilli value chain," Agricultural Systems, Elsevier, vol. 192(C).
    3. Ting-Ting Sun & Chi-Wei Su & Ran Tao & Meng Qin, 2021. "Are Agricultural Commodity Prices on a Conventional Wisdom with Inflation?," SAGE Open, , vol. 11(3), pages 21582440211, August.
    4. Martinson Ankrah Twumasi & Yuansheng Jiang & Evans B. Ntiamoah & Selorm Akaba & Kwabena N. Darfor & Linda K. Boateng, 2022. "Access to credit and farmland abandonment nexus: The case of rural Ghana," Natural Resources Forum, Blackwell Publishing, vol. 46(1), pages 3-20, February.
    5. Aleksander Grzelak & Jakub Staniszewski & Michał Borychowski, 2020. "Income or Assets—What Determines the Approach to the Environment among Farmers in A Region in Poland?," Sustainability, MDPI, vol. 12(12), pages 1-20, June.
    6. Valerio, Erika & Hilmiati, Nurul & Prior, Julian & Dahlanuddin, Dahlan, 2022. "Analysis of the agricultural innovation system in Indonesia: A case study of the beef sector in Nusa Tenggara Barat," Agricultural Systems, Elsevier, vol. 203(C).

    More about this item

    Keywords

    chilli farming; external and internal factors; farming society; structural equation modelling (SEM); welfare impact;
    All these keywords.

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