Economic Behavior of Smallholder Farmers in Adopting Sustainable Land Management Practices

Markus Patiung

doi:10.55927/fjst.v5i1.381

Authors

Markus Patiung Universitas Wijaya Kusuma Surabaya

DOI:

https://doi.org/10.55927/fjst.v5i1.381

Keywords:

Economic Behavior, Smallholder Farmers, Sustainable Land Management, Environmental Agricultural Economics, Adoption Decision

Abstract

The adoption of sustainable land management (SLM) practices by smallholders is a critical issue in agricultural environmental economics, given land degradation pressures and limited household economic capacity. This study analyzes smallholders’ economic behavior in adopting SLM and identifies key economic factors influencing their decisions. Using a mixed-methods approach, data were collected from a structured survey of 60 smallholders in Malang Regency, East Java, and in-depth interviews with five key informants. Quantitative data were analyzed with descriptive statistics and logit regression, while qualitative data were thematically analyzed. Results show that farming income, adoption costs, access to agricultural information, and risk perception significantly affect adoption decisions. These findings indicate that smallholders act economically rationally, weighing trade-offs between short-term profits and long-term sustainability. The study contributes to environmental economics literature by highlighting the need for incentive policies aligned with smallholders’ economic realities to promote effective adoption of sustainable agricultural practices.

References

Abdulai, A., & Huffman, W. (2020). The adoption and impact of soil and water conservation technology: An endogenous switching regression application. Land Economics, 96(1), 123–145. https://doi.org/10.3368/le.96.1.123

Abdulai, A., & Huffman, W. (2022). The adoption and impact of soil and water conservation technology: An endogenous switching regression application. Land Use Policy, 112, 105812. https://doi.org/10.1016/j.landusepol.2021.105812

Agrawal, A., & Chhatre, A. (2021). Forest commons, livelihoods, and conservation: Governance challenges. Proceedings of the National Academy of Sciences, 118(15), e2026896118. https://doi.org/10.1073/pnas.2026896118

Barrett, C. B., Carter, M. R., & Timmer, C. P. (2020). A century-long perspective on agricultural development. American Journal of Agricultural Economics, 102(2), 315–337. https://doi.org/10.1002/ajae.12028

Barrett, C. B., Reardon, T., & Webb, P. (2020). Nonfarm income diversification and household livelihood strategies in rural Africa. World Development, 134, 105016. https://doi.org/10.1016/j.worlddev.2020.105016

Brick, K., & Visser, M. (2021). Risk preferences, technology adoption, and insurance demand. Journal of Economic Behavior and Organization, 183, 346–365. https://doi.org/10.1016/j.jebo.2021.01.021

Creswell, J. W., & Plano Clark, V. L. (2022). Designing and conducting mixed methods research (3rd ed.). SAGE Publications.

Doss, C., Meinzen-Dick, R., Quisumbing, A., & Theis, S. (2021). Women in agriculture: Four myths. Global Food Security, 28, 100445. https://doi.org/10.1016/j.gfs.2020.100445

Fetters, M. D., Curry, L. A., & Creswell, J. W. (2020a). Achieving integration in mixed methods designs. Annals of Family Medicine, 18(6), 516–523. https://doi.org/10.1370/afm.2582

Fetters, M. D., Curry, L. A., & Creswell, J. W. (2020b). Achieving integration in mixed methods designs—principles and practices. Health Services Research, 55(2), 213–223. https://doi.org/10.1111/1475-6773.13298

Greene, W. H. (2020). Econometric analysis (8th ed.). Pearson Education.

Guest, G., Namey, E., & Mitchell, M. (2020). Collecting and analyzing qualitative data at scale. SAGE Open, 10(2), 1–14. https://doi.org/10.1177/2158244020926202

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications.

Kassie, M., Teklewold, H., Jaleta, M., Marenya, P., & Erenstein, O. (2020a). Understanding the adoption of a portfolio of sustainable intensification practices. Land Use Policy, 92, 104537. https://doi.org/10.1016/j.landusepol.2020.104537

Kassie, M., Teklewold, H., Jaleta, M., Marenya, P., & Erenstein, O. (2020b). Understanding the adoption of a portfolio of sustainable intensification practices in eastern and southern Africa. Land Use Policy, 92, 104458. https://doi.org/10.1016/j.landusepol.2019.104458

Lambin, E. F., Gibbs, H. K., Heilmayr, R., Carlson, K. M., Fleck, L. C., Garrett, R. D., Le Polain de Waroux, Y., McDermott, C. L., McLaughlin, D., Newton, P., Nolte, C., & Walker, N. F. (2020). The role of supply-chain initiatives in reducing deforestation. Nature Climate Change, 10(9), 739–748. https://doi.org/10.1038/s41558-020-0751-2

Liu, Y., & Huang, J. (2022). Risk preferences, production uncertainty, and technology adoption: Evidence from smallholder farmers. Agricultural Economics, 53(3), 405–418. https://doi.org/10.1111/agec.12694

Meijer, S. S., Catacutan, D., Ajayi, O. C., Sileshi, G. W., & Nieuwenhuis, M. (2021). The role of knowledge, attitudes and perceptions in the uptake of agricultural technologies. International Journal of Agricultural Sustainability, 19(3–4), 327–344. https://doi.org/10.1080/14735903.2020.1731067

Miles, M. B., Huberman, A. M., & Saldaña, J. (2020). Qualitative data analysis: A methods sourcebook (4th ed.). SAGE Publications.

Ragasa, C., & Mazunda, J. (2023). Agricultural extension, information, and technology adoption. World Development, 162, 106132. https://doi.org/10.1016/j.worlddev.2022.106132

Ruzzante, S., Labarta, R., & Bilton, A. (2021). Adoption of agricultural technology and information constraints: Evidence from smallholder farmers. Food Policy, 102, 102094. https://doi.org/10.1016/j.foodpol.2021.102094

Susilowati, S. H., Rachman, B., & Purwantini, T. B. (2022). Smallholder farmers and sustainable agriculture adoption in Indonesia. Journal of Rural Studies, 92, 150–160. https://doi.org/10.1016/j.jrurstud.2022.04.006

Teklewold, H., Kassie, M., & Shiferaw, B. (2021). Adoption of multiple sustainable agricultural practices and their impacts on household income. Journal of Agricultural Economics, 72(1), 138–156. https://doi.org/10.1111/1477-9552.12385

Villamor, G. B., & van Noordwijk, M. (2021). Gender specific decision-making in farm households and implications for tree cover expansion in agroforestry landscapes. World Development, 146, 105610. https://doi.org/10.1016/j.worlddev.2021.105610