IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v68y2022ics0160791x22000653.html
   My bibliography  Save this article

Does the Indonesian farmer empowerment policy enhance the professional farmer? Empirical evidence based on the difference-in-difference approach

Author

Listed:
  • Adam, Lukman
  • Jin, Jia
  • Khan, Anwar

Abstract

Aging farmers tend to increase the number of retirees with declining successors in the field, which threatens food security. Accordingly, the study investigates the role of the farmer empowerment policy on agricultural production factors and paddy yield in empowering professional farmers in Indonesia. The study used the 2010 and 2016 survey data, employing difference-in-differences based on the propensity score matching (PSM-DID) method. The empirical measures demonstrated the negative effect of the farmer empowerment policy on professional farmers in farmland (0.509), input cost (0.996), and paddy yield (0.521). Agricultural production factor and paddy yield issues remain even after passing the farmer empowerment law. The region faces massive pressure on farmland conversion and input subsidy distribution. Nevertheless, the farmer empowerment law fails to solve the issues due to a lack of interest in developing the agricultural sector by the local government with authority to impose spatial planning. The study suggested modifying the farmland determination into the central government domain and fixing the issue of farmers’ distribution input subsidy.

Suggested Citation

  • Adam, Lukman & Jin, Jia & Khan, Anwar, 2022. "Does the Indonesian farmer empowerment policy enhance the professional farmer? Empirical evidence based on the difference-in-difference approach," Technology in Society, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x22000653
    DOI: 10.1016/j.techsoc.2022.101924
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X22000653
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2022.101924?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yao Pan & Stephen C Smith & Munshi Sulaiman, 2018. "Agricultural Extension and Technology Adoption for Food Security: Evidence from Uganda," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(4), pages 1012-1031.
    2. Abdul-Rahaman, Awal & Abdulai, Awudu, 2018. "Do farmer groups impact on farm yield and efficiency of smallholder farmers? Evidence from rice farmers in northern Ghana," Food Policy, Elsevier, vol. 81(C), pages 95-105.
    3. Spyroulis C & Sumaira A & Sarhanis P, 2017. "Endometrial sarcoma. Case report and review of the literature," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 1(6), pages 1711-1713, November.
    4. Ragasa, Catherine & Mazunda, John, 2018. "The impact of agricultural extension services in the context of a heavily subsidized input system: The case of Malawi," World Development, Elsevier, vol. 105(C), pages 25-47.
    5. Diane Parent, 1996. "The Transformation of Work on the Family Farm," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(4), pages 421-434, December.
    6. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    7. Mendola, Mariapia, 2007. "Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh," Food Policy, Elsevier, vol. 32(3), pages 372-393, June.
    8. Van den Berg, Henk & Jiggins, Janice, 2007. "Investing in Farmers--The Impacts of Farmer Field Schools in Relation to Integrated Pest Management," World Development, Elsevier, vol. 35(4), pages 663-686, April.
    9. Peter Hazell & John Kerr, 1997. "Critical Resource, Technology, and Environmental Issues for Meeting Future Grain Production Needs in Asia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1480-1484.
    10. Duesberg, Stefanie & Upton, Vincent & O'Connor, Deirdre & Dhubháin, Áine Ní, 2014. "Factors influencing Irish farmers' afforestation intention," Forest Policy and Economics, Elsevier, vol. 39(C), pages 13-20.
    11. Wuepper, David & Roleff, Nikolaus & Finger, Robert, 2021. "Does it matter who advises farmers? Pest management choices with public and private extension," Food Policy, Elsevier, vol. 99(C).
    12. Olivia, Susan & Boe-Gibson, Geua & Stitchbury, Glen & Brabyn, Lars & Gibson, John, 2018. "Urban land expansion in Indonesia 1992-2012: evidence from satellite-detected luminosity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(3), July.
    13. Prabhu L. Pingali, 1997. "From Subsistence to Commercial Production Systems: The Transformation of Asian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 628-634.
    14. Harold O. Fried & Loren W. Tauer, 2016. "The Aging U.S. Farmer: Should We Worry?," International Series in Operations Research & Management Science, in: Juan Aparicio & C. A. Knox Lovell & Jesus T. Pastor (ed.), Advances in Efficiency and Productivity, chapter 0, pages 391-407, Springer.
    15. Abdul-Rahaman, Awal & Issahaku, Gazali & Zereyesus, Yacob A., 2021. "Improved rice variety adoption and farm production efficiency: Accounting for unobservable selection bias and technology gaps among smallholder farmers in Ghana," Technology in Society, Elsevier, vol. 64(C).
    16. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
    17. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
    18. Bola Amoke Awotide & Aziz A. Karimov & Aliou Diagne, 2016. "Agricultural technology adoption, commercialization and smallholder rice farmers’ welfare in rural Nigeria," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-24, December.
    19. Jean-Paul Chavas & Robert G. Chambers & Rulon D. Pope, 2010. "Production Economics and Farm Management: a Century of Contributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 356-375.
    20. Schreinemachers, Pepijn & Wu, Mei-huey & Uddin, Md. Nasir & Ahmad, Shahabuddin & Hanson, Peter, 2016. "Farmer training in off-season vegetables: Effects on income and pesticide use in Bangladesh," Food Policy, Elsevier, vol. 61(C), pages 132-140.
    21. Chandio, Abbas Ali & Jiang, Yuansheng & Ahmad, Fayyaz & Adhikari, Salina & Ain, Qurat Ul, 2021. "Assessing the impacts of climatic and technological factors on rice production: Empirical evidence from Nepal," Technology in Society, Elsevier, vol. 66(C).
    22. Muyombano, Emmanuel & Espling, Margareta, 2020. "Land use consolidation in Rwanda: The experiences of small-scale farmers in Musanze District, Northern Province," Land Use Policy, Elsevier, vol. 99(C).
    23. Dawson, Neil & Martin, Adrian & Sikor, Thomas, 2016. "Green Revolution in Sub-Saharan Africa: Implications of Imposed Innovation for the Wellbeing of Rural Smallholders," World Development, Elsevier, vol. 78(C), pages 204-218.
    24. Ashoori, Daryoush & Allahyari, Mohammad Sadegh & Damalas, Christos A. & Bagheri, Asghar, 2018. "RETRACTED: Challenges for efficient land use in rice production of northern Iran: The use of modern cultivars among small-scale farmers," Land Use Policy, Elsevier, vol. 76(C), pages 29-35.
    25. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    26. Yunhua Zhang, 2018. "Insights into Chinese Agriculture," Springer Books, Springer, number 978-981-13-1050-8, December.
    27. Kassie, Menale & Shiferaw, Bekele & Muricho, Geoffrey, 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda," World Development, Elsevier, vol. 39(10), pages 1784-1795.
    28. Liao, Liuwen & Long, Hualou & Gao, Xiaolu & Ma, Enpu, 2019. "Effects of land use transitions and rural aging on agricultural production in China’s farming area: A perspective from changing labor employing quantity in the planting industry," Land Use Policy, Elsevier, vol. 88(C).
    29. Addison, Monica & Ohene-Yankyera, Kwasi & Aidoo, Robert, 2020. "Quantifying the impact of agricultural technology usage on intra-household time allocation: Empirical evidence from rice farmers in Ghana," Technology in Society, Elsevier, vol. 63(C).
    30. Menale Kassie & Paswel Marenya & Yohannis Tessema & Moti Jaleta & Di Zeng & Olaf Erenstein & Dil Rahut, 2018. "Measuring Farm and Market Level Economic Impacts of Improved Maize Production Technologies in Ethiopia: Evidence from Panel Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(1), pages 76-95, February.
    31. Li, Fuduo & Zhang, Kangjie & Ren, Jing & Yin, Changbin & Zhang, Yang & Nie, Jun, 2021. "Driving mechanism for farmers to adopt improved agricultural systems in China: The case of rice-green manure crops rotation system," Agricultural Systems, Elsevier, vol. 192(C).
    32. Belton, Ben & Win, Myat Thida & Zhang, Xiaobo & Filipski, Mateusz, 2021. "The rapid rise of agricultural mechanization in Myanmar," Food Policy, Elsevier, vol. 101(C).
    33. Platteau, Jean-Philippe & De Bock, Ombeline & Gelade, Wouter, 2017. "The Demand for Microinsurance: A Literature Review," World Development, Elsevier, vol. 94(C), pages 139-156.
    34. Bachewe, Fantu N. & Berhane, Guush & Minten, Bart & Taffesse, Alemayehu S., 2018. "Agricultural Transformation in Africa? Assessing the Evidence in Ethiopia," World Development, Elsevier, vol. 105(C), pages 286-298.
    35. Mottaleb, Khondoker A., 2018. "Perception and adoption of a new agricultural technology: Evidence from a developing country," Technology in Society, Elsevier, vol. 55(C), pages 126-135.
    36. Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2006. "Technology Adoption under Production Uncertainty: Theory and Application to Irrigation Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 657-670.
    37. Bachke, Maren Elise, 2019. "Do farmers’ organizations enhance the welfare of smallholders? Findings from the Mozambican national agricultural survey," Food Policy, Elsevier, vol. 89(C).
    38. Mellor, John W., 1969. "Production Economics And The Modernization Of Traditional Agricultures," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 13(1), pages 1-10, June.
    39. John W. Mellor, 1969. "Production Economics And The Modernization Of Traditional Agricultures," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 13(1), pages 25-34, June.
    40. Juan M. Villa, 2016. "diff: Simplifying the estimation of difference-in-differences treatment effects," Stata Journal, StataCorp LP, vol. 16(1), pages 52-71, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bairagi, Subir & Bhandari, Humnath & Kumar Das, Subrata & Mohanty, Samarendu, 2021. "Flood-tolerant rice improves climate resilience, profitability, and household consumption in Bangladesh," Food Policy, Elsevier, vol. 105(C).
    2. Yitayew, Asresu & Abdulai, Awudu & Yigezu, Yigezu A., 2023. "The effects of advisory services and technology channeling on farm yields and technical efficiency of wheat farmers in Ethiopia," Food Policy, Elsevier, vol. 116(C).
    3. Abdoulaye Diagne Author-Name: Fran ois J. Cabral, 2017. "Agricultural Transformation in Senegal: Impacts of an integrated program," Working Papers PMMA 2017-09, PEP-PMMA.
    4. Raju Ghimire & Wen-Chi Huang, 2015. "Household wealth and adoption of improved maize varieties in Nepal: a double-hurdle approach," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1321-1335, December.
    5. Montalbano, P. & Pietrelli, R. & Salvatici, L., 2018. "Participation in the market chain and food security: The case of the Ugandan maize farmers," Food Policy, Elsevier, vol. 76(C), pages 81-98.
    6. Khonje, Makaiko & Mkandawire, Petros & Manda, Julius & Alene, Arega, 2015. "Analysis of adoption and impacts of improved cassava varieties," 2015 Conference, August 9-14, 2015, Milan, Italy 211842, International Association of Agricultural Economists.
    7. Bairagi, Subir & Mishra, Ashok K. & Durand-Morat, Alvaro, 2020. "Climate risk management strategies and food security: Evidence from Cambodian rice farmers," Food Policy, Elsevier, vol. 95(C).
    8. Yanyuan Zhang & Xintong Wu, 2023. "Risk Management Effects of Insurance Purchase and Organization Participation: Which Is More Effective?," Agriculture, MDPI, vol. 13(10), pages 1-16, September.
    9. Zhang, Dongli & Wang, Wenxiong & Zhou, Wei & Zhang, Xiaoling & Zuo, Jian, 2020. "The effect on poverty alleviation and income increase of rural land consolidation in different models: A China study," Land Use Policy, Elsevier, vol. 99(C).
    10. Neubauer, Florian & Songsermsawas, Tisorn & Kámiche-Zegarra, Joanna & Bravo-Ureta, Boris E., 2022. "Technical efficiency and technological gaps correcting for selectivity bias: Insights from a value chain project in Nepal," Food Policy, Elsevier, vol. 112(C).
    11. Raoul Herrmann & Ephraim Nkonya & Anja Faße, 2018. "Food value chain linkages and household food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 827-839, August.
    12. Joanna Chilemba & Catherine Ragasa, 2020. "The Impact on Farmer Incomes of a Nationwide Scaling Up of the Farmer Business School Program: Lessons and Insights from Central Malawi," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 906-938, September.
    13. Takahashi, Kazushi & Mano, Yukichi & Otsuka, Keijiro, 2019. "Learning from experts and peer farmers about rice production: Experimental evidence from Cote d’Ivoire," World Development, Elsevier, vol. 122(C), pages 157-169.
    14. Mgendi, By George & Mao, Shiping & Qiao, Fangbin, 2022. "Does agricultural training and demonstration matter in technology adoption? The empirical evidence from small rice farmers in Tanzania," Technology in Society, Elsevier, vol. 70(C).
    15. Arslan, Cansın & Wollni, Meike & Oduol, Judith & Hughes, Karl, 2022. "Who communicates the information matters for technology adoption," World Development, Elsevier, vol. 158(C).
    16. Simtowe, Franklin & Kassie, Menale & Diagne, Aliou & Asfaw, Solomon & Shiferaw, Bekele & Silim, Said & Muange, Elijah, 2011. "Determinants of Agricultural Technology Adoption: The Case of Improved Pigeonpea Varieties in Tanzania," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 50(4), pages 1-21.
    17. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    18. Mukasa, Adamon N., 2018. "Technology adoption and risk exposure among smallholder farmers: Panel data evidence from Tanzania and Uganda," World Development, Elsevier, vol. 105(C), pages 299-309.
    19. Simtowe, Franklin & Kassie, Menale & Asfaw, Solomon & Shiferaw, Bekele A. & Monyo, Emmanuel & Siambi, Moses, 2012. "Welfare Effects of Agricultural Technology adoption: the case of improved groundnut varieties in rural Malawi," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126761, International Association of Agricultural Economists.
    20. Bairagi, Subir K. & Mishra, Ashok K., 2020. "Do Farmers’ Organizations Impact Production Efficiency? Evidence from Bangladeshi Rice Farmers," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304179, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x22000653. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.