Farmers’ preference for organic rice contract farming scheme: a discrete choice experiment in Indonesia

Hery Toiba, Arif Yustian Maulana Noor, Moh Shadiqur Rahman and Fitria Dina Riana

Journal of Environmental Planning and Management, 2025, vol. 68, issue 3, 704-727

Abstract: Contract farming schemes (CFSs) are essential for providing solutions for farmers due to their guaranteed prices, markets, and availability of inputs. However, numerous farmers quit and leave the contract because the schemes offered are less likely to consider the farmers’ preferences. The formulation of a contract scheme based on farmers’ preferences could provide the potential for better sustainability of cooperation, yet the information regarding food commodities in Indonesia is limited. This study aimed to analyze farmers’ preferences for organic rice CFS. In this study, while the findings of the analysis of CFS-adopters are expected to provide management implications for keeping them in the contract, the preferences of non-adopters are anticipated to provide information regarding the key characteristics of contracts for enticing new farmers. This study included 277 farmers and used the discrete choice experiment (DCE) with the following attributes: payment schedule, input loan, technical assistance, and expected price. The results of the study revealed that CFS-adopters attach great importance to the price attribute, while non-adopters were more concerned with the input loan attribute from the company. Estimation of random parameter logit (RPL) main effect with interaction indicated that there were various relationships between farmer characteristics and the level of attributes. This research is expected to provide managerial implications for companies in preparing organic rice CFS offered to farmers in Indonesia and to provide policy recommendations related to sustainable agriculture.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/09640568.2023.2269308 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jenpmg:v:68:y:2025:i:3:p:704-727

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CJEP20

DOI: 10.1080/09640568.2023.2269308

Access Statistics for this article

Journal of Environmental Planning and Management is currently edited by Dr Neil Powe, Dr Ken Willis and George Bill Page

More articles in Journal of Environmental Planning and Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().