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The Impacts of Certified Seed Plant Adoption on the Productivity and Efficiency of Smallholder Sugarcane Farmers in Indonesia

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Abstract

The development of a certified seed plant (CSP) to increase the production of sugarcane cultivation is one of the primary efforts of the Indonesian government. The purpose of this study was to evaluate the impact of CSP adoption on the productivity and efficiency of smallholder sugarcane farmers in Indonesia. This study used data from the 2014 Indonesian Plantation Farm Household Survey consisting of 3849 farmers. We used propensity score matching to evaluate the impact of CSP adoption on the productivity and technical efficiency of sugarcane farming. We found that the adoption of CSPs increases the productivity of sugarcane farming. The average yield of the farmers who adopt CSPs is 88.24 tons/ha while the average yield of those who do not adopt CSPs is 82.94 tons/ha. Additionally, the adoption of CSPs increases the technical efficiency of sugarcane farming. The average efficiency of the farmers who adopt CSPs is 78.31%, while the non-adopting farmers have a technical efficiency of 76.44%. These results suggest that the current policy regarding CSP adoption has been on the right track. However, the government should encourage farmers to exercise good farming practices since the technical efficiency is low. Additionally, since the current rate of adoption is only 18.13%, the government should prioritize policies encouraging the adoption of CSPs.

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Data Availability

The data that support the findings of this study are available from the corresponding author upon reasonable request.

Code Availability

The coding of the data is available from the corresponding author upon reasonable request.

Notes

  1. The result demonstrates that the use of a small sample size to assess technical efficiency is open to biased estimates.

  2. The gamma value of the SFP is .56, indicating that farmers contribute only 56% to farm inefficiency (Table 2).

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Acknowledgements

We wish to acknowledge the Institute for Research and Community Service (LP2M) of University Jember for supporting this study. Also, we wish to acknowledge the helpful cooperation from the officials of Association of Indonesian Sugarcane Smallholder Farmers who were interviewed in this study. We are grateful for two anonymous reviewers for their constructive and encouraging comments which significantly improved the manuscript. Finally, all errors are ours.

Funding

This research was funded by Lembaga Penelitian dan Pengadian kepada Masyarakat (The Institute for Research and Community Service) University of Jember, Number: 1394/UN25.3.1/LT/2019.

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Authors and Affiliations

  1. Department of Agribusiness, University of Jember, Jember, 68121, Indonesia

    Anik Suwandari, Yuli Hariyati, Titin Agustina, Ati Kusmiati, Triana Dewi Hapsari, Ahmad Fatikhul Khasan & Mohammad Rondhi

  2. Institutional Economic for Agribusiness Reforms and Development (INFRARED) Research Group, University of Jember, Jember, 68121, Indonesia

    Anik Suwandari, Yuli Hariyati, Titin Agustina, Ati Kusmiati, Triana Dewi Hapsari & Mohammad Rondhi

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  1. Anik Suwandari
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  2. Yuli Hariyati
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  3. Titin Agustina
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  6. Ahmad Fatikhul Khasan
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All authors contributed equally to the study.

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Correspondence to Yuli Hariyati.

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Suwandari, A., Hariyati, Y., Agustina, T. et al. The Impacts of Certified Seed Plant Adoption on the Productivity and Efficiency of Smallholder Sugarcane Farmers in Indonesia. Sugar Tech 22, 574–582 (2020). https://doi.org/10.1007/s12355-020-00821-2

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