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Impact of conversion from rice farms to oil palm plantations on socio-economic aspects of ex-migrants in Indonesia

Author

Listed:
  • Imron Zahri

    (Faculty of Agriculture, Universitas Sriwijaya, Palembang, South Sumatra, Indonesia)

  • Elisa Wildayana

    (Faculty of Agriculture, Universitas Sriwijaya, Palembang, South Sumatra, Indonesia)

  • Agus Thony Ak

    (Faculty of Agriculture, Universitas Sjakhyakirti, Palembang, South Sumatra, Indonesia)

  • Dessy Adriani

    (Faculty of Agriculture, Universitas Sriwijaya, Palembang, South Sumatra, Indonesia)

  • M. Umar Harun

    (Faculty of Agriculture, Universitas Sriwijaya, Palembang, South Sumatra, Indonesia)

Abstract

This paper aims to investigate the impact of land conversion from rice farming to oil palm plantations on the socio-economic aspects of ex-migrants in the South Sumatra tidal swamp, Indonesia. Land conversion from rice farming to oil palm plantations is a form of adaptation for ex-migrant farmers and will increase food deficits in Indonesia. Ex-migrant farmers initially cultivated food crops with conventional technology. This pattern has been changing, which have led to the formation of two large groups of farms, namely rice-based farms implementing mechanisation, and oil palm-based plantations. The results showed that changes from rice farming to oil palm plantations did not make the economy of farm households better. Between the two groups of farmers, there is no difference in arable land, the labour allocation for agriculture and the farmers' income. In addition, there is not much difference between farmers' participation in on-farm and out-farm activities. The area of arable land owned, the husbands'age, and family size variables are determinants of farmers' choice to participate in other jobs activities and influence farmers' income. Thus, changes in crops from rice to oil palm have no impact on cultivation area, labour allocation, income, on-farm and out-farm activities.

Suggested Citation

  • Imron Zahri & Elisa Wildayana & Agus Thony Ak & Dessy Adriani & M. Umar Harun, 2019. "Impact of conversion from rice farms to oil palm plantations on socio-economic aspects of ex-migrants in Indonesia," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(12), pages 579-586.
    • Handle: RePEc:caa:jnlage:v:65:y:2019:i:12:id:349-2018-agricecon
    DOI: 10.17221/349/2018-AGRICECON
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    References listed on IDEAS

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    1. Krishna, Vijesh & Euler, Michael & Siregar, Hermanto & Qaim, Matin, 2016. "Farmer heterogeneity and differential livelihood impacts of oil palm expansion in Sumatra, Indonesia," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235218, Agricultural and Applied Economics Association.
    2. You-How Go & Wee-Yeap Lau, 2019. "Palm oil spot-futures relation: Evidence from unrefined and refined products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(3), pages 133-142.
    3. Michael Euler & Stefan Schwarze & Hermanto Siregar & Matin Qaim, 2016. "Oil Palm Expansion among Smallholder Farmers in Sumatra, Indonesia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 658-676, September.
    4. David Wuepper & Habtamu Yesigat Ayenew & Johannes Sauer, 2018. "Social Capital, Income Diversification and Climate Change Adaptation: Panel Data Evidence from Rural Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 458-475, June.
    5. Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
    6. Rebecca Owusu Coffie & Michael P. Burton & Fiona L. Gibson & Atakelty Hailu, 2016. "Choice of Rice Production Practices in Ghana: A Comparison of Willingness to Pay and Preference Space Estimates," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 799-819, September.
    7. Jianmei ZHAO, 2014. "Rural income diversification patterns and their determinants in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(5), pages 219-231.
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    1. Yuan Fang & Yahong Fan & Dehong Yu & Jing Shen & Wankun Jiang & Degui Yu, 2020. "Impact of farmers' benefits linking stability on cloud farm platform of company to farmer model," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(9), pages 424-433.

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