Contract farming (CF) is an important tool to initiate structural transformation of agricultural sector in developing countries. However, one of pertinent problems in its establishment is asymmetric information. This problem creates a condition of mutual distrust between the contracting parties and decreases farmer’s participation in it. Thus, this study aimed to explain the asymmetric information problem in CF and find the correlates of farmer’s participation in it. As one of important industrial crops, this study focused on tobacco CF. This study was conducted at two villages (Antirogo and Nogosari) on two different sub-district (Sumbersari and Rambipuji) in Jember. A sample of 113 farmers were interviewed to collect the data. A descriptive analysis was used to explain the contract arrangement and asymmetric information in tobacco CF. A probit estimation was used to identify the coorelates of farmer’s participation in tobacco CF. The results showed that asymetric information does exists in tobacco CF and can be minimized through intense monitoring and increased transparancy. Both of these are possible when the company contracting directly with farmers. Meanwhile, younger farmer and those with more land are more likely to participate in CF. Furthermore, participation in CF is highly correlated with the increases in farm income. Finally, policy aimed to fostering CF should focused more on regulation that minimize the transaction cost of CF. In addition, in the long term, the policy should focused on incentivize young farmers and encouraging youth to enter agriculture.

The impact of Covid-19 pandemic disrupts the supply chain for livestock breeds, feed, medicines, and others interfere sustainability of livestock businesses. This study aimed to determine the dairy cattle business’s changes during the pandemic at Business Group (KUB) Tirtasari Kresna Gemilang, Malang Regency, Indonesia. The data were obtained using the purposive sampling method. Respondents consisted of 17 dairy farmers (10%) of the total KUB members. The results showed that the farmer had been farming for 10-30 years with a population of three to eight cows. The average milk production of a cow can be maintained at 20 liters/head/day. Cows were given forage and concentrate (made by KUB) two to four times a day. The total cost of feed per month has not changed, which is around IDR 500,000 to IDR 3,000,000. The selling price of milk is IDR 5,400 before and during the pandemic. Health management methods include routine sanitation, injection vitamins, pre-dipping with warm water, and post-dipping with iodine. From this study can be concluded that the farmer of KUB Tirtasari Kresna Gemilang can survive with their management and farming experience, so they were able to sustain and have no problems with their business during the pandemic.