INCREASING NUMBER OF SMALL FARMS IN INDONESIA: CAUSES AND CONSEQUENCES

Tahlim Sudaryanto, Sri Hery Susilowati and Sony Sumaryanto

No 52808, 111th Seminar, June 26-27, 2009, Canterbury, UK from European Association of Agricultural Economists

Abstract: According to agricultural cencus data, the percentage of small farms (holding <0.5 ha) has increased from 48.5% in 1993 to 56.5% in 2003. Evidence from micro panel data is also inline with this observation. In rice farming region of Java, average farm size has declined from 0.49 ha in 1995 to 0.36 ha in 2007. In the off-Java region, average farm size declined from 1.49 ha in 1995 to 1.35 ha in 2007. The increasing trend of small farm is due to several factors, namely: high population presure coupled with limited non-farm employment, persistent trend of land conversion to non-farm use, and traditional practice of land inheritance. Due to small farm size, rural farm household have to diversify their income to meet their family needs. In Java, 51.7% of household income in 2007 is accounted for nonfarm income. This observation implies that strategic policies to increase household income in rural areas are by increasing access to land resources coupled with promoting off-farm and non-farm employment.

Keywords: Labor and Human Capital; Land Economics/Use (search for similar items in EconPapers)
Pages: 10
Date: 2009-08-20
New Economics Papers: this item is included in nep-agr and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa111:52808

DOI: 10.22004/ag.econ.52808

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