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Journal : Journal of Indonesian Economy and Business

THE IMPACT OF CONTRACT FARMING ON THE PROFIT OF VIRGINIA TOBACCO FARMING IN LOMBOK ISLAND, WEST NUSA TENGGARA Hamidi, Hirwan
Journal of Indonesian Economy and Business Vol 25, No 1 (2010): January
Publisher : Journal of Indonesian Economy and Business

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Abstract

This study aims at explaining the impact of contract farming on the profit of Virginia tobacco farming in Lombok Island. Does partnership influence profit? We used surveydata of 147 farmers, they are partners of tobacco processors and independent farmers. By utilizing profit function analysis, it is concluded that: (1) partnership positively affected the profit of Virginia tobacco farming in Lombok Island; (2) productivity, prices of tobacco, fertilizers (NPK, KNO), pesticide, kerosene, and labor wage significantly affected the profit. These are followed by: (1) that farmers should reduce the use of human labor, while partner company and local government should endeavor to find alternative technology to substitute human labor with machinery labor; (2) that the government is recommended to continue subsidy provisionof at least for short term program until cheaper alternative fuels, such as coal, solar energy, biomass energy, or others, are available.Keywords: impact, partnership, profit, Virginia tobacco
THE IMPACT ON FARM PROFITS OF A COMPANY’S PARTNERSHIP WITH A POTATO FARM Hamidi, Hirwan
Journal of Indonesian Economy and Business Vol 29, No 2 (2014): May
Publisher : Journal of Indonesian Economy and Business

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Abstract

This research aims to explain the impact of the partnership on potato farms’ profits inSembalun District, West Nusa Tenggara Province. To achieve this goal, we looked at 142farmers, comprising of 111 partnered farmers and 31 non-partnered farmers. The conclusionsfrom our profit function analysis were: (i) the partnership had a positive impact on potatofarmers’ profits in Sembalun District, West Nusa Tenggara Province; (ii) productivity, inputcosts, and labor costs had a significant influence on profits as an impact of the partneship. Inthis context, it is recomended that the local government encourage and facilitate potato farmerswho have not yet established a partnership to enter such an arrangement with the company, sothat their productivity and incomes increase. In addition, the local government is expected tobuild storage facilities for potato seeds. Future research should search for potato seeds that canreplace the imported ones.Keywords: impact, partnership, profit, potato