This paper examines the impacts of contract farming on its smallholder participants in East Java, Bali and West Nusa Tengarra (NTB). Three contracts were selected for detailed analysis: seed corn in East Java; seed rice in Bali; and broiler chickens in NTB. The analysis was informed through key informant interviews and household surveys. The report includes a review of contract farming and detailed description and analysis of the three selected contracts.
This study evaluates the benefits to smallholders and agribusinesses from participating in contract farming in Bali and West Nusa Tenggarra (NTB). Methodology involved surveying both contracted (n=150 in Bali and n=80 in NTB) and non-contracted farmers (n=150 in Bali and n=120 in NTB). Probit analysis was used to identify factors influencing smallholder contract participation.
This study assesses contract farming in East Java and reports on the possibility of contract farming as a mechanism for improving the economic situation of smallholders. Study methodology involved the observation and survey of existing contract farming operations in East Java and desktop analysis. The study provides background information on contract farming frameworks and reports that contract farming was found in 57% of East Java's regencies/municipalities.