RESEARCH REPORT YEARLY FUND, 2007 PROFILE ANALYSIS OF FARMERS AND AGRICULTURE IN INDONESIA

Transcription

1 RESEARCH REPORT YEARLY FUND, 2007 PROFILE ANALYSIS OF FARMERS AND AGRICULTURE IN INDONESIA By : Nyak Ilham Kedi Suradisastra Tri Pranadji Adang Agustian Gatoet Sroe Hardono Endang Lestari Hastuti INDONESIAN CENTER FOR AGRICULTURE SOCIO ECONOMIC AND POLICY STUDIES INDONESIAN AGENCY FOR AGRICULTURAL RESEARCH AND DEVELOPMENT MINISTRY OF AGRICULTURE 2007

2 EXECUTIVE SUMMARY INTRODUCTION 1. Food price policy to enhance farmer s well-being was found to be ineffective. Such a policy was primarily enjoyed by those with large land holding as well as by nonfarmer individuals. Small farmers merely received wage from their labor which was proven to be contributing insignificantly to their household welfare. To make a policy more effective, proper and accurate information was needed if a welfare policy is to be implemented. Based on such consideration, this research was aimed at revealing and analyzing farmer s profile in a broad term which cover the following aspects: demography, labor, land ownership and assets, income and expenditure, and sociocultural. RESEARCH METHOD 2. In regard to understanding farmer s socio-economic position, their profile and problems should be perceived from farmer s point of view. The government has played a role as a guide to direct or change the development to enhance farmer s well-being. To achieve such an intention, adequate and accurate data and information was required. The required data consisted of pecuniary and nonpecuniary aspects of farmer s household economy. Due to high variation of farm household enterprises, the study analyzed farmer s profile in terms of agro ecosystem and primary commodity they raised and grew. The analysis was applied at national, regional and local levels. 3. The study locations were purposefully selected based on the framework of Patanas and 2003 Agriculture Census. The locations were determined by the existing agro ecosystem and commodity. The selected provinces were West and Central Java, and South Sumatra. In each province, the kabupatens (regency) representing lowland and highland agro-ecosystems were further selected. Each ecosystem was further grouped into irrigated and non-irrigated agro-ecosystems. The grouping comprised 7 rice villages, 2 corn villages, 2 shallot villages, and 2 rubber villages. In each village fifteen farmer household representing low, medium and large land ownership were selected. The resource of secondary data were BPS (Central Bureau of Statistics) which covered information on 2003 Agriculture Census and Susenas and other data from the Ministry of Agriculture. Descriptive statistics and cross-tabulation analyses, graphs, picture and diagram interpretations were employed in this study. RESULTS AND ANALYSIS Demography 4. The 2003 Agriculture Census showed that the majority (45%-85%) of farm household comprised 3-4 household members. Compared to the survey result (2-4 household member), such data showed no significant difference. Such finding could be assumed as that most farmers had put priority on their family s quality of life. The effect of small family was that farmers tend to apply agriculture machineries due to the lacking of family labor. Further consequence of this situation was that there was a need to provide agricultural machineries through many ways such as developing the UPJA or other means. 5. At the national level, the 2003 Agriculture Census showed that 69% of farmers were in productive age (age 25-54). Those who were older than 54 years comprised 30% of food crop farmers in West Java, 33% of food crop farmers in Central Java, and ES-1

3 33% of horticulture farmers in Central Java. The more limited survey resulted in a finding where the majority of farmers were over 40 years of age. Such finding was probably due to the absence of younger generation to work in agriculture. Such weak incentive was due to the fact that agriculture did not provide good incentive, low price of agriculture product and high input price, and the ever lower land value. 6. Nationwide, the 2003 census showed that the farmer s housing condition was considered adequate (85%). Exception was found in the regency of Cianjur where 85% farmers own bamboo houses. In the regencies of Grobogan and Blora, 80.50% and 78.68% of food crop farmers own houses with hardened soil floor, respectively. The survey finding also produced similar results. Drinking water was obtained from appropriate source (90%) and the rest used river and rainwater to fulfill their daily needs. Most farmers in the regency of Banyuasin (52%) depended on rainwater. On the other side, 81% farmers already enjoyed electricity for primary purposes, while the rest used storm lamp or other means of lightening. Control to Agricultural Assets 7. Data of 2003 census and survey on farmer profile showed that the majority of farmers owned less than 0.5 hectare of farmland, except farmers in the villages of Banyu Urip (ex-transmigration area), Mulya Agung Banyuasin and Perdjito at the rubber plantation areas. At the last three mentioned area, the average land ownership ranged from 1.94 to 3.91 hectare for each farm household. According to 2003 census, 3 to 12 percent farmers controlled less than 0.5 hectare. Out of 13 sample villages, farmers in 6 villages showed an increase of land holding, in 4 villages remain the same, and farmers in 2 other villages decrease in land holding. Such a change was due to the benefits they reached from farm enterprises, off-farm activities or the shift to other assets. For other assets than those of agriculture land, farmers in 6 villages had increased their assets, stable in 4 villages and went down in the other 3 villages. If the assets were combined, there were 7 villages that showed an increase in terms of farmer s well-being, 4 villages remained the same and 2 villages showed decreasing assets value. Yet, in general, farmer s welfare was increasing. Technology 8. Nationwide, 2003 census data revealed an excessive use of rice seed in wet rice farming (41-45 kg/ha compared to standard use of 30 kg/ha). The profile survey 2007 even showed higher amount of seed that farmers used (47-60 kg/ha) with the exception of the regency of Indramayu that showed the average use of seed was as much as kg/ha. Such excessive use had contributed to seed deficiency in the market which further caused the price to soar. To anticipate this situation, farmers usually breed their own seed although they knew this strategy may reduce production. Virtually all farmers adopted strain Ciherang due to its high production, pest and disease resistant, short lived and good taste. 9. The 2003 census exposed that the average use of corn seed was not different (25.94 kg/ha) from the suggested standard (20-40 kg/ha) at both national and the study case. The profile survey uncovered that the use of 10 kg corn seed per hectare in village Gedangan, Grobogan, was a mere strategy to use the land during hard dry season, and not for production purposes. 10. The recommended amount of shallot was 900-1,200 kg/ha. Yet, according to 2003 census, shallot farmers at the national level employed kg/ha. The profile survey found different number: 883-1,365 kg/ha. Shallot seed used in village Tanjungsari was usually of strain Bangkok while in village Banjarhardjo farmers preferred strain Kuning (40%), Philippines (40%) and 20% of other strains. The problem was that there was no institution that bore responsible to breed shallot for ES-2

4 seed requirement. Most farmers breed their own seed from imported strain that was intended for consumption. 11. Number of rubber seedling used for each hectare of land ranged from 476 and 500 seedlings, depending upon the topography. The profile survey found that the vast majority of farmers used local or natural seedling. Farmers in village Mulya Agung, Banyuasin, used strain PB-260 with number of seedling per hectare ranged from 500 to 700 seedlings. Local estate service office which manages the Gerbang Serasan Program recommended farmers of village Perdjito to plant 450 seedlings per hectare and as much as 700 seedlings per hectare when they choose natural strain. 12. Data of 2003 Agriculture Census showed that rice farmers in Java had been using fertilizer (urea) close to the recommendation, that was between 248 and 316 kg/ha, whereas in South Sumatra the number reached a mere 129 kg/ha, and worse, in the regency of Banyuasin farmers use 80 kg/ha. The low dosage of urea used was related to the variation on rice field types such as irrigated field, rain-fed field, or tidal swamp field. The average use of TSP or SP-36 for one hectare field was 122 kg. yet, in the regency of Grobogan the amount of SP-36 used was above 200 kg/ha, and in other areas was 150 kg/ha with the exception of the regency of Banyuasin where farmers used only 63 kg SP-36 for a hectare of rice field. In terms of KCL, the national average of its use was 78 kg/ha, but farmers use KCl in a wide variation. Such variation was caused by the relatively high price of KCl but its effect on production was not significant. 13. The use of urea and TSP or SP-36 for rice and corn reported by 2003 Agriculture Census was not different with that found by the 2007 profile survey. The use of KCL was very low and varied according to locality. Similar situation was also found in shallot production although it showed more dynamic variation. Besides urea, TSP/SP-36 and KCl, farmers in the study locations also employed ZA, NPK and Ponska. 14. In general, the use of fertilizer in rubber plantation was lower than recommendation. This information showed the importance of extension to transfer production technology for better rubber production. The 2007 profile survey in village Mulya Agung uncovered higher use of fertilizer from that of village Perdjito, Muara Enim. The reason was that Mulya Agung farmers used new clone of rubber that required better attention and management. On the contrary, Perdjito farmers who use new clone were limited to those who joined the government program. 15. The primary problem related to technology application faced by rice farmers was the limited irrigation facilities. Water availability, particularly for rice farming, was the main requirement in order to adopt other technologies such as high yielding variety, fertilizer application, pest and diseases control, and soil preparation. Farmers could do nothing regarding irrigation-related problems. The use of water pump was expensive and contributed a few to farm productivity. Another reason that if pump technology was not properly controlled, it could disturb the water table system. Therefore, the development of irrigation system was the government s responsibility, or at least become a partnership between the government and private company. 16. Not all technology was developed to follow agro-ecosystem s specification. In the case of corn in the regency of Blora, there was a difference in corn strain used in the dry land and in the wet rice field. Similar situation was also found in the case of shallot farming in the irrigated area of village Tanjungsari with non-irrigated rice field in the regency of Brebes. Yet, the use of rice strain was not considered unique, because the Ciherang strain was planted in almost all location, except in village Sumber Agung, regency of Grobogan. ES-3

5 17. Culture, ethnic, and other supporting factors (such as extension agency) play important roles in the process of technology adoption. West Java farmers living in the production center of Indramayu still used gebotan (a manual effort) to separate rice seed from its straw, although power threshers were available in the area. Another case was shown by rubber farmers ex-transmigrants from Java who were more responsive to adopt new rubber clone compared to local ethnic farmers of the regency Muara Enim. Labor and Wage System 18. The wage of labor usually applied contract, daily wage, or sharing arrangement. The traditional wage system such as sambatan (communal self-help) and ceblokan (group contract) were disappearing. In village Banyu Urip, sambatan was employed during planting and weeding activities. In village Gedangan, sambatan was still employed to build house whereas in Tanjungsari was applied by small farmers to prepare soil for shallot plantation. On the other side, wage system in cash was blooming due to general perception of the society toward cash as the compensation for a particular effort. 19. The working hour for farming activity varied between 49 to 82 per cent. Relevant to that of farm income, the proportion of working hour for rice farmers (49-73%) was the smallest compared to that of shallot farmers (75-79%) and rubber farmers (77-79%). Yet, rice farmers had better opportunity to work off-farm compared to shallot and rubber farmers whose working hour were higher due to the nature of the commodities they grew. Income and Income Resources 20. The proportion of farmer s income in some commodity and agro-ecosystems varied between 40-81%, depending upon the type of commodity and planting intensity. The income proportion of rice farmers reached 45-69% for both irrigated and non-irrigated field and 57-77% for corn farmers. Among monoculture shallot farmers the proportion was 81% on irrigated land and in a multi-culture system reached 57% on nonirrigated land. For rubber farmers, the proportion was 40-50%. 21. The high intensity of shallot planting in village Tanjungsari, Brebes (4 planting with planting pattern rice-shallot-shallot-shallot) and one special case with 5 planting (one rice and 4 shallot) was considered as the primary cause for the high income proportion from such a commodity. Farmers of village Tawang Rejo with low land productivity had prompted them to migrate to earn better income from large cities. Consumption and Expenditure of Farmer and Non-farmer. 22. In general, food expenditure at both national and study location levels was increasing from 2002 to 2005 for those who resided in the cities or villages, level of income, and for both farmer and non-farmer. The result of 2007 profile survey exposed that the expenditure proportion tended to decrease which could be assumed that farmer s well-being was getting better. 23. Farmers living in the poor areas tended to change their life. To obtain such positive changes, their non-food expenditure was more aimed at health improvement and education for their children to improve the future generation and to shift them from working as farmers. The effort comprised reducing food and farm expenditures. 24. Other non-food expenditures with high proportion were expenditures for special traditional occasions and parties. This was so for all categories of income which was irrelevant with Engel s law. Even though some farmers perceived such traditions was unimportant, they still adopted them due to the feeling of shame and fear of being socially isolated. ES-4

6 25. In general rice consumption was decreasing at all levels. Food consumption among farm and non-farm families was purchased from outside resources and this situation tended to increase from 2002 to Rice dependency to the market which reached 70-89% was considered fragile, particularly when rice price was climbing. Agricultural Institution 26. Farmer s groups association (Gapoktan) was still a controversy. Limited personal capability and lack of capital, as well as lack of understanding on legal aspects related to farmer s movement, such an association was difficult to develop in the short term. Among those limitations, entrepreneurship seemed to be the primary thing to consider. Short term solution to this problem was that an effort should be made to integrate farmer group association into the already existing LUEP (Lembaga Usaha Ekonomi Pedesaan, Village Economic Institution) which already operating in their respective areas. 27. Number and capacity of field extension worker were not always gone hand in hand. The increasing number of personnel was not always able to cover the real needs of extension worker. Extension personnel covered more than one village as their working area, but in the regency of Brebes, an extension worker should cover 3-4 villages. Low ratio of personnel to working area, limited facilities, and uncertain incentive were among many burdens an extension worker had to face. In addition, many local extension center (BPP) were in miserable condition. Such accumulated situation contributed negatively to the extension s field activities. 28. Village Unit Cooperative (KUD), UPJA (Usaha Pelayanan Jasa Alsintan, Agriculture Machinery Service) and communal village barn were the government s introductory institutions. Many village cooperatives that should play roles in agriculture production activities had shifted their activities into non-agriculture businesses such as electricity payment services and selling primary needs of local households (sembako). Theoretically, the UPJA as an important institution should be revitalized and it should also deal with the process of agricultural mechanization at the village level. Same thought was so for village communal barn that should be able to function as food security institution for local villagers and communities. 29. The majority of farmers relied on their own capital to maintain farm activities and production. Yet, the proportion of farmers who depended on credit or loan from local agricultural input shops (kios) was considerably high. With monthly interest around 10%, many farmers perceived such loan as helpful for they could obtain it without difficult administrative conditions. Farmers also obtained loan from local bank (Indonesian People s Bank, BRI) with in-kind payback after the harvest (yarnen) such as the case of the regency of Indramayu. The cases of villages Gedangan and Tawang Rejo where local bank BPR (Bank Perkreditan Rakyat, People s Bank of Credit) provided itinerant credit and loan services to farmers were proven successful. Development Impact to Farmers 30. Nationwide, the government developed a well-planned support program to enhance agricultural production and farmer s welfare. Yet, problems arising from the administration and interpretation sides, as well as the difficulties in the synchronization of various supporting programs. On the other side, farmers expected an appropriate execution of the government s welfare program due to the fact that only a handful of them had been positively affected by such program. They expected that the government s aid was directly given to either farmers or farmer s groups. ES-5

7 CONCLUSION 31. There was a tendency of decreasing labor supply in agriculture sector. This tendency was socially perceived as being a farmer carried a heavy burden and low status. Furthermore, farming did not provide attractive and steady income. This was the primary reason why young generations of a farm family choose to work off-farm in a regular basis and steady income. 32. The 2003 census and 2007 profile study data provided information that the vast majority of farmers owned less than 0.5 hectare of farm land. The exception occurred in villages Banyu Urip, Mulya Agung, Perdjito, Tugu and Gantar. During the period of , farmers experienced an improvement in terms of their control to various agricultural and non-agricultural assets. This situation was related to the phenomenon of non-food expenditures decline in Rice farmers who applied excessive seed was far higher in proportion compared to those who apply recommended amount of seed. Such prodigality affected negatively on the government s seed multiplication strategy. Consequently, seed availability at the market was far below the real demand. Another problem that farmers faced was the inappropriate irrigation capacity that hampered their rice production activity such as the adoption of fertilizer, pesticides, and other agriculture technologies. 34. Farm activity required relatively high portion of working hour. As much as 49-82% farmer s daily working hour was dedicated to farm activity. On the other side, the proportion of farm income ranged from 40% to 81%, depended on the commodity planted and planting intensity. The ordinary farm activity as a system in which farmers used to perceived social values as one among the system s measures, had gradually shifted into a more economic perception that made certain social values disappear or becoming vulnerable to economic requirement. 35. Based on the proportion of food expenditures during the period of , both agriculture and non-agriculture households experienced a decline in household welfare at all hierarchy. Yet, the result of profile survey 2007 showed an improvement in family welfare. Rice consumption for both farmer and non-farmer decreased, whereas food purchase from other sources increased. The need of rice consumption that reached 70-89% of total food consumption indicated that the stability of food price was strongly related to the household food security. 36. The implementation of law on autonomy affected negatively to the performance of local offices of agricultural extension. Yet, special case of village Tugu showed that a disappearing extension activity had been revitalized by inspirational village leaders who were able to stimulate farmers to reactivate their farmer s groups. The revitalization of farmer s groups stimulated the development of new farmer s groups to further be regrouped in larger association of farmer s group (Gapoktan). 37. Many farmers obtained credit from local money lender with high interest, but easy and lenient procedures. In some villages, farmers had already access to local bank (BRI and BPR) due to its simple lending scheme such as BRI s after-harvest in-kind payback (yarnen) and BPR s itinerant credit services. POLICY IMPLICATION 38. Agriculture mechanization was considered important to improved and enhanced to improve farm productivity, overcome high labor demand, and attract village youth to work in agriculture. Farmer s effort to apply and purchase their own farm machineries should be supported by the government to accelerate farm production in the area. ES-6

8 39. Due to low land ownership, it was a necessity to open wider access of farmers to enhance planting intensity. This thought was regarded as relevant to agrarian reform in both short and long term reforms. In a broader thought it was also necessary to develop village economics through inter sector diversification on both farm and nonfarm activity. 40. The existing irrigation system as an integral part of agriculture ought to be improved in terms of primary, secondary and tertiary irrigation infrastructure and village irrigation system. Irrigation program was an inter-sector coordination between Ministry of Public Works, Ministry of Forestry, and local government. Proper implementation of irrigation programs at the upper level would affect the effectiveness of irrigation structure at both village and farm level. 41. Revitalization of extension system needed to be continuously enhanced to support agricultural production activities. The steps should cover the improvement of farm incentive, working condition, labor mobility, extension facilities, and enhancing farmer s skill and knowledge. To improve farmer s group capacity and capability, a short term option was to integrate LUEP with the existing farmer s group in the area where LUEP operated. Farmer s group association (Gapoktan) should also be revitalized through putting farm activity into proper venture, revitalization of farmer s economy, accountability of farm activities, and transparency of information. 42. Non-bank, micro credit institution should be developed to improve farmer s access to farm credit to lessen farmer s dependency to local money lenders. Proper strategy to open farmer s access to bank and credit institutions should constantly be carried out such as: (a) farmer s group capacity improvement to manage its member s budget collectively, and (b) employing local catalyst to guarantee farmer s loan to the bank. ES-7