Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, Indonesia

Over the past decade, smallholder rubber farming experienced significant issues related to risks of rainy season, rubber diseases, and price decreases. The risk exposure will reduce agricultural productivity, income, and sustainability. Farmers are expected to mitigate various risks by adopting the...

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Main Authors: Imelda Imelda, Mulyo Jangkung Handoyo, Suryantini Any, Masyhuri Masyhuri
Format: Article
Language:English
Published: De Gruyter 2023-05-01
Series:Open Agriculture
Subjects:
Online Access:https://doi.org/10.1515/opag-2022-0196
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author Imelda Imelda
Mulyo Jangkung Handoyo
Suryantini Any
Masyhuri Masyhuri
author_facet Imelda Imelda
Mulyo Jangkung Handoyo
Suryantini Any
Masyhuri Masyhuri
author_sort Imelda Imelda
collection DOAJ
description Over the past decade, smallholder rubber farming experienced significant issues related to risks of rainy season, rubber diseases, and price decreases. The risk exposure will reduce agricultural productivity, income, and sustainability. Farmers are expected to mitigate various risks by adopting the appropriate risk strategy. Efforts to support the risk strategy adoption are constrained by the lack of scientific research in rubber farming, especially for simultaneous risk strategy adoption. This study aims to identify the risk strategy adoption in rubber farming and analyse the determinant factors by considering farmers’ socioeconomic, rubber farm characteristics, and risk perception. The data were collected from 200 rubber farmers in West Kalimantan, Indonesia, and analysed using a multinomial logit model. The study results show that the most selected strategy was income diversification. The multinomial logit model indicates that farmers’ age, family members, rubber age, rubber clones, and rainy season risk perception positively affect the adoption of risk strategy. In contrast, experience, farm area, and farm distance have a negative effect. The results also indicate that family members, farm area, and farm distance variables significantly affect all choices of risk strategy adoption. The results of this study suggest several implications for government and policymakers in providing assistance and counselling, capital assistance, input access, and improving transportation, road access, and communication.
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spelling doaj.art-41d521bd480d452c8b2e3207d65c8c612023-05-31T06:56:00ZengDe GruyterOpen Agriculture2391-95312023-05-01813273810.1515/opag-2022-0196Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, IndonesiaImelda Imelda0Mulyo Jangkung Handoyo1Suryantini Any2Masyhuri Masyhuri3Department of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Tanjungpura, West Kalimantan, IndonesiaDepartment of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, Yogyakarta, IndonesiaDepartment of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, Yogyakarta, IndonesiaDepartment of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, Yogyakarta, IndonesiaOver the past decade, smallholder rubber farming experienced significant issues related to risks of rainy season, rubber diseases, and price decreases. The risk exposure will reduce agricultural productivity, income, and sustainability. Farmers are expected to mitigate various risks by adopting the appropriate risk strategy. Efforts to support the risk strategy adoption are constrained by the lack of scientific research in rubber farming, especially for simultaneous risk strategy adoption. This study aims to identify the risk strategy adoption in rubber farming and analyse the determinant factors by considering farmers’ socioeconomic, rubber farm characteristics, and risk perception. The data were collected from 200 rubber farmers in West Kalimantan, Indonesia, and analysed using a multinomial logit model. The study results show that the most selected strategy was income diversification. The multinomial logit model indicates that farmers’ age, family members, rubber age, rubber clones, and rainy season risk perception positively affect the adoption of risk strategy. In contrast, experience, farm area, and farm distance have a negative effect. The results also indicate that family members, farm area, and farm distance variables significantly affect all choices of risk strategy adoption. The results of this study suggest several implications for government and policymakers in providing assistance and counselling, capital assistance, input access, and improving transportation, road access, and communication.https://doi.org/10.1515/opag-2022-0196multinomial logit modelrisk perceptionrisk strategy adoptionrubber farmers
spellingShingle Imelda Imelda
Mulyo Jangkung Handoyo
Suryantini Any
Masyhuri Masyhuri
Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, Indonesia
Open Agriculture
multinomial logit model
risk perception
risk strategy adoption
rubber farmers
title Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, Indonesia
title_full Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, Indonesia
title_fullStr Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, Indonesia
title_full_unstemmed Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, Indonesia
title_short Assessing the determinant factors of risk strategy adoption to mitigate various risks: An experience from smallholder rubber farmers in West Kalimantan Province, Indonesia
title_sort assessing the determinant factors of risk strategy adoption to mitigate various risks an experience from smallholder rubber farmers in west kalimantan province indonesia
topic multinomial logit model
risk perception
risk strategy adoption
rubber farmers
url https://doi.org/10.1515/opag-2022-0196
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