Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?

This study presents an ex-ante cost-benefit analysis of introducing sustainability standards to smallholder oil palm farmers in the province of Jambi, Sumatra, Indonesia. Sustainability standards are defined as a set of oil palm management practices derived from the Indonesia Sustainable Palm Oil (I...

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Main Authors: Ernah, Priyanka Parvathi, Hermann Waibel
Format: Article
Language:English
Published: Taylor & Francis Group 2020-03-01
Series:International Journal of Agricultural Sustainability
Subjects:
Online Access:http://dx.doi.org/10.1080/14735903.2020.1744899
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author Ernah
Priyanka Parvathi
Hermann Waibel
author_facet Ernah
Priyanka Parvathi
Hermann Waibel
author_sort Ernah
collection DOAJ
description This study presents an ex-ante cost-benefit analysis of introducing sustainability standards to smallholder oil palm farmers in the province of Jambi, Sumatra, Indonesia. Sustainability standards are defined as a set of oil palm management practices derived from the Indonesia Sustainable Palm Oil (ISPO) scheme. Economic and environmental benefits of ISPO are derived from a panel data set from some 185 oil palm smallholders collected in 2010, 2012 and 2013. We explore two basic strategies for the introduction of ISPO namely: (1) a conventional extension campaign and (2) a farmer field school approach. Our calculations show that the farmer field school approach results in a higher economic rate of return compared to conventional agricultural extension campaigns. A major conclusion from this analysis is that the Government of Indonesia should invest if ISPO standards are to be adopted on a large scale by smallholder farmers.
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spelling doaj.art-c8e7bfe27ccf4b388d77ed24a5a78d312023-09-19T15:22:21ZengTaylor & Francis GroupInternational Journal of Agricultural Sustainability1473-59031747-762X2020-03-0118219621110.1080/14735903.2020.17448991744899Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?Ernah0Priyanka Parvathi1Hermann Waibel2Department of Socioeconomics, Faculty of Agriculture, University of PadjadjaranInstitute of Development and Agricultural Economics, Leibniz University HannoverInstitute of Development and Agricultural Economics, Leibniz University HannoverThis study presents an ex-ante cost-benefit analysis of introducing sustainability standards to smallholder oil palm farmers in the province of Jambi, Sumatra, Indonesia. Sustainability standards are defined as a set of oil palm management practices derived from the Indonesia Sustainable Palm Oil (ISPO) scheme. Economic and environmental benefits of ISPO are derived from a panel data set from some 185 oil palm smallholders collected in 2010, 2012 and 2013. We explore two basic strategies for the introduction of ISPO namely: (1) a conventional extension campaign and (2) a farmer field school approach. Our calculations show that the farmer field school approach results in a higher economic rate of return compared to conventional agricultural extension campaigns. A major conclusion from this analysis is that the Government of Indonesia should invest if ISPO standards are to be adopted on a large scale by smallholder farmers.http://dx.doi.org/10.1080/14735903.2020.1744899oil palmcost-benefit analysisispofarmer field schoolsindonesia
spellingShingle Ernah
Priyanka Parvathi
Hermann Waibel
Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?
International Journal of Agricultural Sustainability
oil palm
cost-benefit analysis
ispo
farmer field schools
indonesia
title Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?
title_full Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?
title_fullStr Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?
title_full_unstemmed Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?
title_short Will teaching sustainability standards to oil palm smallholders in Indonesia pay off?
title_sort will teaching sustainability standards to oil palm smallholders in indonesia pay off
topic oil palm
cost-benefit analysis
ispo
farmer field schools
indonesia
url http://dx.doi.org/10.1080/14735903.2020.1744899
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AT priyankaparvathi willteachingsustainabilitystandardstooilpalmsmallholdersinindonesiapayoff
AT hermannwaibel willteachingsustainabilitystandardstooilpalmsmallholdersinindonesiapayoff