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This study challenges the traditional image of peasants in developing economies as always passive to market forces. In this study of marketing upland crops in Indonesia the authors demonstrate active peasant participation and entrepreneurship in commercial and industrial activities. The peasant marketing system not only works as an effective bridge between farm producers and consumers but also produces significant employment and income in the rural sector. The Indonesian case suggests a genuine possibility of rural-based economic development in the third world.
Smallholder farmers in developing countries face substantial constraints that limit their ability to reach their production potential. Two constraints—risk exposure and limited access to liquidity—pose particular challenges. Smallholders face a wide variety of risks that constrain both the choices they can make and their willingness to make investments. Limited availability of affordable credit, borrowing and saving products poorly aligned with the needs of the agriculture sector, and prohibitive borrowing eligibility requirements all impede farmers’ access to the liquidity necessary for investing in new, more profitable crops and technologies (International Finance Corporation, 2014). Observers have noted that a large share of long-term credit needs is not being met in Southeast Asia, despite its location near some of the world’s largest consumer markets (Shakhovskoy & Wendle, 2013). While existing financial services may be suitable for some farmers, access to finance is particularly inadequate among women, low-income groups, and ethnic minorities, and risk excluding the most vulnerable groups from these emerging economic opportunities.
The genesis of this book was inspired by the recognition of rice not only as a vital source of sustenance but also as a living symbol of unity, prosperity, and resilience in Indonesian society. It is a tribute to the generations of farmers whose hands have sown the seeds of life, nurtured the soil, and harvested the bounty that feeds millions. Through an amalgamation of rigorous research, field studies, and intimate conversations with the guardians of Indonesia’s rice fields, this book aims to illuminate the wisdom embedded in traditional rice cultivation and its significance in the modern era.
As developing countries continue on the path of economic liberalisation, there is an urgent need to bring the benefits of new trade and market opportunities to rural areas.While producers with larger landholdings may have access to capital, marketing information and institutional support, smallholders often miss out and are more likely to be marginalised. One possible mechanism for improving the livelihood of rural smallholders and providing them with the benefits of economic liberalisation is contract farming. For smallholders, contract farming is potentially a way of overcoming market imperfections, minimising transaction costs and gaining market access.
This book is not solely about the scientific aspects of soils. We also delve into the intertwined relationship between these soils and the hardworking farmers who rely on them for their livelihoods. We celebrate the knowledge, expertise, and innovative practices of Indonesian farmers who have honed their skills in working with the specific properties and challenges posed by primary soils.
This report provides analysis and policy recommendations on the investments needed in Indonesia's agriculture sector to boost food security and enhance economic development. Agriculture continues to play a vital role in Indonesia's economic development. The sector contributes significantly to the country's gross domestic product, provides jobs for nearly 30% of the workforce, and has the essential function of providing food security. The report assesses the country's agricultural investments and policies, and evaluates the economy-wide impacts of alternative agricultural scenarios. The results show that Indonesia can virtually end hunger by 2030 with an appropriate mix of investments in agricultural research and development, irrigation expansion and water use efficiency, and rural infrastructure. The report makes key policy recommendations to support government efforts to mobilize these investments, which will also contribute to the country's economic growth.