Financial Support Program for Small Farmers, and Its Impact on Local Food Security. Evidence from Indonesia (original) (raw)
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Cogent Economics & Finance
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Microfinance program and food security: A Review in the Indonesian context
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This paper addresses the way microfinance programs affect food security, whic h is compiled based on a literature review of a total of 58 pieces of literature, from 1995 to 2020. Its paper sheds light on microfinance in rural areas in Indonesia, microfinance and food security, and critics related to microfinance programs based on a literature review. The result indicates that when the program’s impact on participants’ families’ food security and nutrition is measured, the results could be different. Most of the results stated a positive impact, but it might depend on many other factors. Taken together, the paper findings highlight the importance of a cycle of innovation, experimentation, and evaluation that must be carried out to build a robust financial institution to answer challenges and provide solutions to all the various conditions experienced by low-income families, involving various institutional structures, modes, and mechanisms. Other supporting factors are also important,...
Assessment of agricultural assistance for smallholder farmers with their issues and concerns
Globally, smallholder farmers only have less than 2 hectares of land but they are crucial to food security. The problem is, they always remain poor. Using focus group discussion (FGD), the study investigated issues and concerns. Results showed that the farmers have received a number of various kinds of assistance from the government which provided them with benefits however they also have sentiments about some matters. The study found out that they are highly incapable in addressing many issues surrounding them. Improving their agricultural productivity and household-level income are the main factors to reducing poverty.
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International Journal of Agriculture System, 2018
This paper notes that a serious difficulty of smallholders in Indonesia is improving marketing networks of agricultural products. The marketing network in rural area is dominated by the brokers (called tengkulak). Smallholders do not have options to finance their production except for borrowing capital input from the tengkulak. Then the tengkulaks’ money will be repaid by smallholders in terms of agricultural products. It is true that smallholders get capital input, as well as daily life desires easily, on one hand. However, it also true that smallholders have no choice and they are ‘choked’ by the tengkulak in terms of price discrimination on the other hand. This phenomenon affects smallholder’s income. However, the tengkulak plays an important role in smallholder community. The first role is Financial/Capital Input provider. The tengkulak provides access to capital inputs for smallholders who are not able to get formal credit (banks). The second role is Production Process. The ten...
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Agriculture is one of the most important sectors to support household economy in West Nusa Tenggara (WNT), dominated by small holder farmers. This paper aims to provide insight on smallholder farmers attitude to access bank under integrated crop-livestock system in WNT. A survey was conducted in 2021 in East Lombok, Sumbawa and Bima districts covering 103 farmers. This study found that farmers in Lombok has less interaction with bank compared to Sumbawa and Bima. Reasons mentioned were afraid to be unable to repay, no collateral, and no need to loan. Conversely, farmers in Sumbawa and Bima have accessed bank loan for more than 5 years to support crops and cattle farming. This difference was also associated with resources. Average land and cattle ownership per household in East Lombok were much lesser than in Sumbawa and Bima, 0,4 vs 2 and 0,7 ha respectively, and 1-2 vs 4-5 and 5-6 head respectively. Loan for crops farming often get repaid from selling cattle. Hence, it is concluded...
VOICES FROM THE FIELD: NEEDS OF SMALL-SCALE FILIPINO RICE FARMERS
This paper presents an assessment of needs and coping mechanisms of small-scale rice farmers in the Philippines. Various ethnographic methods were used in the study. Focus group discussions among farmers and key informant interviews among agricultural staff and extension workers were conducted in 51 villages of 19 municipalities in six provinces of the country. Household survey was conducted among 923 farmers in the provinces of Agusan del Norte, Iloilo and Isabela. The major needs faced by small-scale Filipino rice farmers ranged from overcoming biotic and abiotic stresses, economic sufficiency, structural sufficiency and enhanced knowledge in rice farm management & technologies. Sufficient capital prevailed to be the most common need in rice farming. Other specific needs include low input cost, higher paddy price, access to equipment and post-harvest facilities, adequate irrigation system, farm-to-market roads, overcoming biotic stresses such as pests and diseases, overcoming abiotic stresses such as flooding and drought, and improved knowledge on rice farm management and technologies. Some needs and constraints were found to be location-specific such as biotic and abiotic stresses, but were interrelated. Adoption of key technologies promoted in the PalayCheck system to increase rice production remains a great challenge since these technologies such as the site specific nutrient management are closely interrelated with timely availability of sufficient financial capital. Farmers were found to manage and cope by borrowing money from informal lenders who charge them with high interest rates, and traders that require farmers to sell their produce immediately after harvest with a low paddy price. These situations entrapped our rice farmers in a cycle of poverty, hence pro-farmer policies and programs that addressed real needs of farmers should be in place: easy access to formal financial institutions with low interest rates and simplified credit requirements; a competitive price for paddy; reduction in costs of inputs; livelihood programs to farmers and their households; access to post-harvest facilities; better irrigation systems and road infrastructures; and most of all, strengthening farmer organizations. A working multi-stakeholder partnership among farmer organizations, Department of Agriculture and local government units are imperative in addressing the needs of farmers to increase rice production, farming households' income and achieving the country's goal of rice self-sufficiency.
The Roles of Local Institutions to Improve Farmer Access to Foods and Production Capacities
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How smallholder farmers meet their needs during scrarcity of foods always become subject of questions. Local institutions are expected to play some key roles for marginal farmer households for their survival.The objectives of the study were (1) to describe farmers’ activities in meeting foods for their family, (2) to analyze the roles of local institutions in improving farmers’ access to foods and capacities to produce the foods, and (3) to analyze the correlation between the roles of local institution and the farmer access to foods and capacities to produce foods. The study was conducted at a transmigrant group in the Village of Peoho of the sub-regency of Watubangga (Regency of Kolaka), which was located in the Indonesia’s Southeast Sulawesi Province. We used a survey technique, in which simple random sampling method was applied. The target population was all of the farmer households in the proposed village. The quantitative data were analyzed discriptively, and to asess the corre...
Despite their importance in global and regional food production, smallholder farmers' especially in agro-pastoral regions have received minimal recognition in policy, strategic frameworks and interventions. In Kenya, there has been little focus by government and interventions on agriculture for smallholder farmers in agro-pastoral regions, thus, rendering them into numerous vulnerabilities and constraints that impede their agricultural activities. This study investigated smallholder farming characteristics on household food security in West Pokot County, Kenya. Multi stage and systematic random sampling techniques were used to determine a sample size of respondents in respective locations. This study adopted an explanatory research design and employed mixed methods approach. The researcher also drew philosophical inspiration from pragmatic worldview that is problem centred and more focused on real world issues. The target population comprised of 78,946 smallholder households in West Pokot County with a sample size of 297 respondents. Questionnaires, interview schedules and observations were used for collecting data. The collected data was analysed using both and inferential statistics. Qualitative content was achieved through content analysis. The study found out that more males (76.66%) were involved in both crop and livestock production as compared to females (58.04%). In addition, there is significant relationship between total size of household arable land and land size under food crop production (r=0.570, P=0.000). The study showed that farming characteristics which included farming practices and size of arable land under food production had a significant positive influence on the household food security. The results of this study will also be significant at household level as a community and will enhance household food security by understanding the challenges and opportunities in smallholder farmers.