Agricultural land conversion (ALC) is an incentive-driven process. In this paper, we further investigate the inter-relationship between land economic value (LEV) and ALC. To achieve this goal, we calculated the LEV for agricultural and non-agricultural (housing) uses in two areas of East Java, Indonesia. The first area represents peri-urban agriculture, which is facing rapid urbanization and experiencing a high rate of ALC. The second area represents rural agriculture, with zero ALC. Furthermore, we identified factors affecting LEV in both areas for both uses. The results of this study show that agricultural land yielded a higher economic benefit in rural areas. Conversely, compared to agricultural land, housing in urban areas yields a value that is seven times higher. Moreover, agricultural land was shown to yield a higher profit after conversion. Ironically, a similar comparison does not exist in rural areas. Agricultural land yielded a value that was only 19% higher, indicating that agricultural land can easily be converted. This is also proven by the growing number of new urban cores in the periphery area. There are several factors affecting land economic value, such as agricultural use, soil fertility, accessibility, and cropping pattern, which are important variables. Meanwhile, the accessibility and location of peri-urban areas increase the land value for housing.
Climate change (CC) is one of the primary threats to the agricultural sector in developing countries. Several empirical studies have shown that the implementation of adaptation practices can reduce the adverse effects of CC. The likelihood of farmers performing adaptation practices is mostly influenced by the degree of CC impact that they perceive. Thus, we identified the characteristics of farmers that affect the degree of the CC impact that they perceive. We used data from the Indonesian Rice Farm Household survey consisting of 87,330 farmers. An ordered probit regression model was used to estimate the effect of each variable on the degree of the perceived impact of CC. The results of this study confirm those of previous empirical studies. Several variables that have been identified as having a positive effect on farmer adaptation practices, such as farmer education, land tenure, irrigation infrastructure, cropping system, chemical fertilizer application, access to extension services, and participation in farmer groups, negatively affect the degree of the perceived impact of CC. However, a different result was found in the estimation of the gender variable. We found that female farmers have a higher CC resilience and ability to withstand climatic shocks and risks than male farmers. Female farmers have a more positive perception of future farming conditions than male farmers. We recommend the implementation of a national adaptation policy that use and expand the channel of agricultural extension services to deliver the planned adaptation policy, and prioritizes farmers with insecure land tenure. Additionally, we encourage the increasing of female involvement in the CC adaptation practices and decision-making processes.
Agricultural land conversion (ALC) is an incentive–driven process. In this paper we further investigate the inter–relationship between land economic value (LEV) and ALC. To achieve this goal, we calculated LEV for agricultural and non-agricultural (housing) uses in two areas in East Java, Indonesia. The first area represents suburban agriculture, facing rapid urbanization and experiencing high rate of ALC. The second area represents rural agriculture with zero ALC. Furthermore, we identified factors affecting LEV in both areas for both uses. The resut of this study show that agricultural land yielded higher economic benefit in rural area. Conversely, comparing to agricultural land, housing creates 7 times higher value in urban area. Moreover, agricultural land shown to create higher profit after converted. Ironically, the similar comparison doesn’t exists in rural area. Agricultural land only yielded 19% more value, indicate that agricultural land can be easily converted. It is also proven by the growing number of new urban core in the periphery area. There are several factors affecting land economic value, for agricultural use, soil fertility, accessibility, and cropping pattern are important variables. While accessibility and location in urban area increases land value for housing.
The integrated value chain is a prerequisite for the successful industrialization of the agricultural sector. Contract farming (CF) is a useful instrument to integrate the agricultural value chain in developing countries such as Indonesia. The purpose of this study was to identify the determinants of farmer participation in sugarcane contract farming. The data utilized in this study was obtained from the Indonesian Plantation Farm Household Survey 2014 for Sugarcane. The data consists of 8.831 farmers distributed in 8 provinces. Logistic regression was used to estimate the determinants of farmer participation in sugarcane CF. The result shows that age, education, and type of cultivated land negatively affect farmer participation in sugarcane CF. Meanwhile, land tenure, cultivation area, cropping system, certified seed, membership in a cooperative, access to extension services, and membership in farmer's association positively affect farmer participation in sugarcane CF. The policy implication for increasing farmer participation in CF is to intensify the information of CF to the farmer with a large cultivation area. Since these farmers tend to participate in CF to anticipate marketing risks.
Land is the main input in agricultural production and also a wealthgenerating asset for farmers. There are three common forms of agricultural land ownership:owned land, rented land, and sharecropped (kedokan) land, where each of them are directly affects the farming performance. The purpose of this study was to analyze the effect of land ownerships on farm production, labor use, and farm economic efficiency. The sample used in this study were 150 farmers equally distributed in each ownership group from a population of 1039 farmers. Cobb-Douglas production function, F-test, and RC ratio were used to estimate production function, the difference in labor use, and farm economic efficiency. The results showed that rented land has the highest productivity followed by owned and sharecropped (kedokan) land.Meanwhile, the sharecropped (kedokan) land has the lowest labor use, followed by rented and owned land. However, in term of profitability, owned land is the highest followed by rented and sharecropped land. The results also showed that sharecropped (ngedok) as an informal contract farming between farmer and landlord was the best economic choice for the landlord. Furthermore, to improve farmers welfare, the landless farmers should be facilitated to own their own land.
The data in this article describes the land use characteristics at peri-urban and rural areas, on Jember District, in the Province of East Java, Indonesia. The types of land use covered in the data are agricultural and residential land. The data was a result of a research collaboration between the Department of Agribusiness, Department of Soil Science, and the Department of Agricultural Extension in the University of Jember. The general purpose of the data collection was to compare the characteristics of different land use in the peri-urban and rural area. The data has been compiled to investigate the economic rent of varying land use in peri-urban and rural areas to explain the dynamic of farmland conversion, and to investigate the farmland distribution among farmer in the peri-urban area. The data contains technical and socio-economic aspects of land use in peri-urban and rural areas. The data were collected through structured interviews with farmers and homeowners in each area. A total of 200 interviews were conducted to 100 farmers and homeowners. The location of each respondent was recorded with the location-marking feature of the GPS to represent the distribution of samples. The tracking feature of the GPS was used to locate the physical infrastructure such as irrigation canal, road, and market. In total, the data contained 29 variables and attached as the supplementary material of this data article.
<p>The demand for broiler is rising rapidly due to its capability as the main animal protein source. In contrast, the production of broiler meat is unstable due to the possibility of farm risk. Contract Farming (CF) is one of the risk management tools for farmers but has not been used effectively. The purpose of this study was to analyze the factors that influence farmers’ decision to participate in CF. The analysis used six independent variables, namely farmer’s age, farm size, household size, education, farmer’s risk preference and risk aversion level. This study used primary data from 70 broiler farmers in Jember, which were divided into two groups, contract farmer and independent farmer. Each group had the same number of respondents. The results show that five among six independent variables significantly affected farmers’ decision to take part in CF. Farmer’s age decreased farmer’s probability to participate in CF, while education, farm size, household size and risk preference had positive effects. Farmer’s risk aversion level did not have any significant effect. The results suggest that the effort to expand CF participation should focus on young and educated farmers with large farm size.</p>
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