What is it about?
This research analyzes incentives for new tangerine farmers by different intermediaries in Tuban, Indonesia. Direct interviews and a survey were conducted in 2014 and 2015 with new farmers, Bakul (small local collectors), wholesalers, tangerine middlemen, and the government office. New tangerine farmers in Tuban use three alternative logistic routes: the Bakul and/or wholesalers, the tangerine Tebasan system, and the tangerine Ijon system. This study found that new farmers obtain over twice the margins when they sell tangerines to the Bakul and/or wholesalers compared with farmers who use the tangerine Tebasan system and the tangerine Ijon system. However, some new farmers prefer to use the tangerine Tebasan system or the tangerine Ijon system to obtain immediate cash before harvest terms, to avoid harvesting failure, and to enjoy leisure in summer, although these tangerine farmers gain relatively small margins compared to those who sell tangerines to Bakul and/or wholesalers.
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Why is it important?
This study is significant as it analyzes the impact of the New Tangerine Farming Support program on new farmers in Tuban, Indonesia. The research evaluates how different market channels influence farmers' income and decision-making, providing critical insights into agricultural policy and rural development. One of the key findings is that farmers selling directly to Bakul (small collectors) and wholesalers earn over twice the margins compared to those using the Tebasan (pre-harvest selling) or Ijon (credit-based pre-sale) systems. While some farmers opt for immediate cash flow through Tebasan and Ijon, these methods result in significantly lower profits. Understanding these dynamics helps policymakers and stakeholders enhance market structures to maximize farmer earnings. The study also highlights the transformation of previously illegal logging areas into productive agricultural land, demonstrating how government support can drive rural economic development. Additionally, it explores sustainability challenges, such as citrus greening disease (Huanglongbing), which has reduced citrus-growing areas. By examining government interventions, the paper offers strategies for mitigating agricultural threats and improving farming resilience. Moreover, the research provides empirical data from interviews and surveys with farmers and intermediaries, making it a valuable resource for future studies on agricultural supply chains. Overall, this study contributes to optimizing farmer incentives, improving market efficiency, and strengthening agricultural policies, making it relevant for policymakers, researchers, and development practitioners.
Perspectives
This study offers valuable insights into the intersection of agricultural policy, market structures, and farmer decision-making. It highlights the real-world challenges that new farmers face in balancing immediate financial needs with long-term profitability. The findings reinforce the importance of well-structured government support programs that not only provide financial aid but also empower farmers with market knowledge and sustainable farming practices. One of the most compelling aspects is the contrast between different sales routes—while the Bakul and wholesaler channels offer higher profits, the Tebasan and Ijon systems provide short-term security. This reflects a broader issue in smallholder farming, where access to capital and risk management often dictate economic choices rather than purely profit-driven decisions. Understanding these trade-offs can help shape policies that encourage more sustainable financial models for farmers. Furthermore, the paper sheds light on the role of land-use transformation in rural economic development. The initiative to convert illegal logging areas into productive tangerine farms is commendable and demonstrates how agricultural support programs can have broader environmental and economic benefits. I find this study particularly relevant to discussions on value chain optimization and sustainable agricultural practices. Future studies could explore ways to integrate technology, such as precision agriculture or blockchain-based supply chains, to enhance transparency and efficiency in farmer transactions. This research provides a strong foundation for further innovations in agricultural policy and rural development.
Zainuri Hanif
National Research and Innovation Agency (BRIN)
Read the Original
This page is a summary of: New Farmers’ Incentives under the New Tangerine Farming Support: The Case of Tuban, Indonesia, International Journal of Fruit Science, January 2021, Taylor & Francis,
DOI: 10.1080/15538362.2021.1895032.
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