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. It identified three models of contract farming in East Java: the informal model; the intermediary model; and the multipartite model, and provides details on the characteristics of each of these. The study highlights the need for further assessment, including a comparative study of all contract farming types in East Java with consideration of the positive and negative aspects on the local communities. The report also outlines the characteristics of different contract agreements.

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