IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0257812.html
   My bibliography  Save this article

The role of access to finance from different finance providers in production risks of horticulture in Indonesia

Author

Listed:
  • Eliana Wulandari
  • Miranda P M Meuwissen
  • Maman H Karmana
  • Alfons G J M Oude Lansink

Abstract

This paper aims to investigate the association between perceived production risk of horticultural farms and access to finance from different finance providers. The collection of data was conducted among 434 farmers in Indonesia particularly farmers produced mango, mangosteen, chili and red onion. Production risk was measured by the coefficient of variation, skewness, kurtosis and the 25th percentile. Depending on the risk measure, a lower production risk was found for commercial credit from banks and flexible payments of inputs to kiosks. Conversely, we did not find any lower production risk associated with finance provided by farmers’ associations and other sources such as family and friends. Results of this study are useful for policy makers, finance providers and supply chain actors in agriculture. For policy makers, the results of this study can help in designing policy to enhance farmers’ access to finance, whereas finance providers and supply chain actors, such as traders, obtain insight into whether their financial provisions effectively reduce production risk.

Suggested Citation

  • Eliana Wulandari & Miranda P M Meuwissen & Maman H Karmana & Alfons G J M Oude Lansink, 2021. "The role of access to finance from different finance providers in production risks of horticulture in Indonesia," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-12, September.
    • Handle: RePEc:plo:pone00:0257812
    DOI: 10.1371/journal.pone.0257812
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0257812
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0257812&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0257812?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
    ---><---

    References listed on IDEAS

    as
    1. Ogada, Maurice Juma & Nyangena, Wilfred & Yesuf, Mahmud, 2010. "Production risk and farm technology adoption in the rain-fed semi-arid lands of Kenya," Journal of Cooperatives, NCERA-210, vol. 4(2), June.
    2. Shiferaw T. Feleke & Richard L. Kilmer & Christina H. Gladwin, 2005. "Determinants of food security in Southern Ethiopia at the household level," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 351-363, November.
    3. Ogada, Maurice Juma & Nyangena, Wilfred & Yesuf, Mahmud, 2010. "Production risk and farm technology adoption in the rain-fed semi-arid lands of Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 4(2), pages 1-16, June.
    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. Mwangi, Joseph Kanyua & Crewett, Wibke, 2019. "The impact of irrigation on small-scale African indigenous vegetable growers’ market access in peri-urban Kenya," Agricultural Water Management, Elsevier, vol. 212(C), pages 295-305.
    2. Tanko, Mohammed, 2022. "Nexus of risk preference, culture and religion in the adoption of improved rice varieties: Evidence from Northern Ghana," Land Use Policy, Elsevier, vol. 115(C).
    3. Aslihan Arslan & Kristin Floress & Christine Lamanna & Leslie Lipper & Solomon Asfaw & Todd Rosenstock, 2020. "IFAD RESEARCH SERIES 63 - The adoption of improved agricultural technologies - A meta-analysis for Africa," IFAD Research Series 304758, International Fund for Agricultural Development (IFAD).
    4. Martina Bozzola & Melinda Smale & Salvatore Di Falco, 2016. "Climate, Shocks, Weather and Maize Intensification Decisions in Rural Kenya," FOODSECURE Working papers 39, LEI Wageningen UR.
    5. Krisha Lim & Bruno Wichmann & Martin K. Luckert & Peter Läderach, 2020. "Impacts of smallholder agricultural adaptation on food security: evidence from Africa, Asia, and Central America," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(1), pages 21-35, February.
    6. Maurice Ogada & Dianah Muchai & Germano Mwabu & Mary Mathenge, 2014. "Technical efficiency of Kenya’s smallholder food crop farmers: do environmental factors matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(5), pages 1065-1076, October.
    7. Maurice Ogada & Germano Mwabu & Diana Muchai, 2014. "Farm technology adoption in Kenya: a simultaneous estimation of inorganic fertilizer and improved maize variety adoption decisions," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-18, December.
    8. Enete, A.A. & Otitoju, M.A. & Ihemezie, E.J., 2015. "The choice of climate change adaptation strategies among food crop farmers in Southwest Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 5(1).
    9. Sadowski, Arkadiusz & Wojcieszak-Zbierska, Monika Małgorzata & Zmyślona, Jagoda, 2024. "Agricultural production in the least developed countries and its impact on emission of greenhouse gases – An energy approach," Land Use Policy, Elsevier, vol. 136(C).
    10. Abebaw, Degnet & Fentie, Yibeltal & Kassa, Belay, 2010. "The impact of a food security program on household food consumption in Northwestern Ethiopia: A matching estimator approach," Food Policy, Elsevier, vol. 35(4), pages 286-293, August.
    11. Muuz Hadush, 2018. "Welfare and food security response of animal feed and water resource scarcity in Northern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-24, December.
    12. Tankari, Mahamadou R., 2014. "L’élasticité calorie-revenu est-elle faible au Niger ?," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 95(04), pages 473-491, December.
    13. Wantchekon, Leonard & Riaz, Zara, 2019. "Mobile technology and food access," World Development, Elsevier, vol. 117(C), pages 344-356.
    14. Sanzidur Rahman, 2017. "Climate, Agroecology and Socio-Economic Determinants of Food Availability from Agriculture in Bangladesh, (1948–2008)," Sustainability, MDPI, vol. 9(3), pages 1-19, February.
    15. Ayala Wineman, 2016. "Multidimensional Household Food Security Measurement in Rural Zambia," Agrekon, Taylor & Francis Journals, vol. 55(3), pages 278-301, July.
    16. Babatunde, R.O., 2018. "Impact of Remittances on Food Security and Nutrition of Migrant s Household: Evidence from Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276986, International Association of Agricultural Economists.
    17. Kolawole Ogundari, 2017. "Categorizing households into different food security states in Nigeria: the socio-economic and demographic determinants," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    18. Dithmer, Jan & Abdulai, Awudu, 2017. "Does trade openness contribute to food security? A dynamic panel analysis," Food Policy, Elsevier, vol. 69(C), pages 218-230.
    19. Bashir, Muhammad Khalid & Schilizzi, Steven & Pandit, Ram, 2012. "Food Security and Its Determinants at the Crossroads in Punjab, Pakistan," Working Papers 126033, University of Western Australia, School of Agricultural and Resource Economics.
    20. Bashir, Muhammad Khalid & Schilizzi, Steven & Pandit, Ram, 2012. "Livestock and Rural Household Food Security: The Case of Small Farmers of the Punjab, Pakistan," Working Papers 126034, University of Western Australia, School of Agricultural and Resource Economics.

    More about this item

    Statistics

    Access and download statistics

    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:plo:pone00:0257812. 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: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    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.