The Effect of Oil Palm Farmers' Partnership with PT. Tunggal Yunus Estate on Farm Income in Tapung Sub-District, Kampar District

Cindy Triwulansari, Masyhuri and Hani Perwitasari

Journal of Agribusiness Management and Development (JAMADev), 2024, vol. 5, issue 1

Abstract: Partnerships in oil palm plantations aim to increase production through assistance provided by the company, so that farmers' income increases. PT Tunggal Yunus Estate is one of the companies engaged in oil palm plantations and processing in Tapung District, Kampar Regency. This study aims to: (1) determine the partnership pattern between partner farmers and PT Tunggal Yunus Estate; (2) compare farm income between partner farmers and non-partner farmers; (3) determine the factors that influence the decision of oil palm farmers to partner with PT Tunggal Yunus Estate. The number of samples used was 30 respondents consisting of 15 partner farmers and 15 non-partner farmers. Sampling on partner farmers using simple random sampling method, while sampling on non-partner farmers using purposive sampling method. The data analysis method used was descriptive analysis, independent sample t-test, and binary logistic regression analysis. The results showed that the partnership pattern uses the core plasma pattern, but not pure. The difference with plasma core partnerships in general is in land and farming costs. Oil palm farming income of partner farmers amounting to Rp 44,712,326.51/ha/year is higher than oil palm farming income of non-partner farmers amounting to Rp 29,036,170.93/ha/year. The difference in income is due to differences in production levels and FFB prices. Factors that positively influence the decision of oil palm farmers to partner with PT Tunggal Yunus Estate are land area and income, while age, education level, number of family dependents, and farming experience have no significant effect.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
Date: 2024
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