Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in Indonesia

The availability of quality seeds is critical to supporting the sustainability of agriculture, which is further reinforced by the success of contract farming between seed companies and partner farmers. To foster a mutually beneficial partnership, it is essential to align the needs of farmers with th...

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Main Authors: Destu Syah Inanda, Pandu Laksono, Any Suryantini, Arini Wahyu Utami
Format: Article
Language:English
Published: Universitas Sebelas Maret, Faculty of Agriculture 2025-01-01
Series:Caraka Tani: Journal of Sustainable Agriculture
Subjects:
Online Access:https://jurnal.uns.ac.id/carakatani/article/view/88996
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author Destu Syah Inanda
Pandu Laksono
Any Suryantini
Arini Wahyu Utami
author_facet Destu Syah Inanda
Pandu Laksono
Any Suryantini
Arini Wahyu Utami
author_sort Destu Syah Inanda
collection DOAJ
description The availability of quality seeds is critical to supporting the sustainability of agriculture, which is further reinforced by the success of contract farming between seed companies and partner farmers. To foster a mutually beneficial partnership, it is essential to align the needs of farmers with the facilities and services provided by the company through well-defined contract terms and conditions. This study aims to explore the contract attribute preferences and their importance levels among farmers, growth leaders, and companies using a quantitative approach. A discrete choice experiment utilizing the conditional logit model was employed to investigate the preferences of 170 farmers, while a descriptive analysis was used to outline the preferences of other stakeholders. The findings indicate that farmers prefer written agreements over informal ones, favor shorter contract durations, and demand higher prices. Additionally, farmers showed a marked preference for receiving inputs, incentives, and credits. The preference patterns of stakeholders align with those of farmers regarding agreement form, inputs, price, incentives, and credit, although stakeholders tend to favor contracts with longer durations. Based on the rank-based quotient method, both growth leaders and farmers identified price, input subsidies, incentives, credits, agreement form, and duration as the most important attributes in maize seed partnership contracts, in descending order of importance. Contrarily, the company prioritizes input subsidies over other attributes, including price, duration, credit, incentive, and agreement form. These insights can inform the design of more suitable and effective contracts, thereby fostering sustainable partnership relationships in the future.
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institution Kabale University
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publishDate 2025-01-01
publisher Universitas Sebelas Maret, Faculty of Agriculture
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series Caraka Tani: Journal of Sustainable Agriculture
spelling doaj-art-ee6805d03c09476bb4023be9281207af2025-01-30T09:17:15ZengUniversitas Sebelas Maret, Faculty of AgricultureCaraka Tani: Journal of Sustainable Agriculture2613-94562599-25702025-01-0140113915510.20961/carakatani.v40i1.8899644677Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in IndonesiaDestu Syah Inanda0Pandu Laksono1Any Suryantini2Arini Wahyu Utami3Department of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, YogyakartaResearch Center for Behavior and Circular Economy, National Research and Innovation Agency (BRIN), YogyakartaDepartment of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, YogyakartaDepartment of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, YogyakartaThe availability of quality seeds is critical to supporting the sustainability of agriculture, which is further reinforced by the success of contract farming between seed companies and partner farmers. To foster a mutually beneficial partnership, it is essential to align the needs of farmers with the facilities and services provided by the company through well-defined contract terms and conditions. This study aims to explore the contract attribute preferences and their importance levels among farmers, growth leaders, and companies using a quantitative approach. A discrete choice experiment utilizing the conditional logit model was employed to investigate the preferences of 170 farmers, while a descriptive analysis was used to outline the preferences of other stakeholders. The findings indicate that farmers prefer written agreements over informal ones, favor shorter contract durations, and demand higher prices. Additionally, farmers showed a marked preference for receiving inputs, incentives, and credits. The preference patterns of stakeholders align with those of farmers regarding agreement form, inputs, price, incentives, and credit, although stakeholders tend to favor contracts with longer durations. Based on the rank-based quotient method, both growth leaders and farmers identified price, input subsidies, incentives, credits, agreement form, and duration as the most important attributes in maize seed partnership contracts, in descending order of importance. Contrarily, the company prioritizes input subsidies over other attributes, including price, duration, credit, incentive, and agreement form. These insights can inform the design of more suitable and effective contracts, thereby fostering sustainable partnership relationships in the future.https://jurnal.uns.ac.id/carakatani/article/view/88996choice experimentconditional logitcontract farmingpreference behaviorseeds
spellingShingle Destu Syah Inanda
Pandu Laksono
Any Suryantini
Arini Wahyu Utami
Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in Indonesia
Caraka Tani: Journal of Sustainable Agriculture
choice experiment
conditional logit
contract farming
preference behavior
seeds
title Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in Indonesia
title_full Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in Indonesia
title_fullStr Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in Indonesia
title_full_unstemmed Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in Indonesia
title_short Stakeholders and Farmers’ Preferences Towards Contract Attributes: Evidence from Hybrid Maize Production in Indonesia
title_sort stakeholders and farmers preferences towards contract attributes evidence from hybrid maize production in indonesia
topic choice experiment
conditional logit
contract farming
preference behavior
seeds
url https://jurnal.uns.ac.id/carakatani/article/view/88996
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AT pandulaksono stakeholdersandfarmerspreferencestowardscontractattributesevidencefromhybridmaizeproductioninindonesia
AT anysuryantini stakeholdersandfarmerspreferencestowardscontractattributesevidencefromhybridmaizeproductioninindonesia
AT ariniwahyuutami stakeholdersandfarmerspreferencestowardscontractattributesevidencefromhybridmaizeproductioninindonesia