Islamic Agricultural Economic Financing Based On Zakat, Infaq, Alms And Waqf In Empowering The Farming Community

Abstract

In the development of the agricultural sector, farmers are the key to its success. However, to a certain extent, specific interventions need to be done considering the problems faced by most farmers, such as financial constraints, lack of assistance, facilities, agricultural tools, and lack of land, which are obstacles to developing farmers enterprises. Therefore, this study attempts to analyze the potential of Islamic social finance tools in farmers development, particularly in facilitating financial problems of farmers in line with the government efforts in strengthening the agricultural sector. The distribution of productive zakat, infaq, alms and waqf (ZISWAF), based on the application of contractual contracts inherent from Islamic legislation and the management of productive ZISWAF, will be highlighted in this paper. The methodology of this study is based on a qualitative approach like gathering information from library research, and hence it is analyzed based on a deductive approach. The management of ZISWAF is divided into two, namely consumptive and productive ZISWAF. Consumptive ZISWAF can assist farmers in meeting their daily needs. At the same time, productive ZISWAF can develop farmers agricultural enterprises through musaqah, muzaraah, mukharabah, and ijarah contracts. Accordingly, it can be argued that Islamic social finance can play a positive role and be an alternative solution to farmers to promote agricultural land development.

ZISWaF Institutional Approach to Activate Idle Agricultural Land as a Catalyst for the Agro-Food Sector in Malaysia

“…In addition to that, success and smoothness in the development of agricultural waqf land are through planning, organizing, action, monitoring and finally evaluation as a method of internal management and administration of institutions with farmers (Mohamed & Shafiai, 2021a). This is important to ensure that productive efforts on waqf land do not stop halfway or become fail.…”

“…Source: Data processed from Aziz et al (2013), Mahamood et al (2018), Amin & Muda (2019), Wakaf Felda (2020), Mohamed & Shafiai (2021a) Next is the result of revenue. Based on figure 5 above, revenue distribution will be distributed based on the percentage that is the highest percentage of 60% is distributed for welfare and benefits to meet the purpose of waqf and the objectives of waqf institutions while the second highest is for reinvestment that is 20% invested in shariah compliant investments and its returns will be used for the development of agricultural waqf land and will be redistributed the revenue again.…”

Analyzing the Role of Waqf and Zakat in the Economy through a Case Study of Agricultural and Livestock Projects

“…In order to guide the economic integration study of waqf and zakat for this agricultural and livestock undertaking. The majority of studies focus on Islamic banking or Islamic financing, which is a type of loan used to fund projects in agriculture and livestock (Mohamed & Shafiai, 2021). Therefore, looking at the integration of zakat and waqf as an alternative to solving financial problems in agriculture and livestock projects, this study will focus on the empowerment of the asnaf involved, under the management of SIRC that has been selected.…”

Gubuk Ziswaf: Solusi Pembiayaan Hidup Masyarakat Berbasis Pemberdayaan Lokal Di Tengah Pandemi Covid-19

“…Namun, selain berbagai upaya yang telah dilakukan pemerintah, masyarakat juga harus saling memberdayakan agar setiap lapisan masyarakat dapat bertahan selama masa pandemi. Di sisi lain, permasalahan pendistribusian dana ZISWAF (Zakat, Infaq, Shadaqah dan Waqaf) sampai saat ini belum merata (Hamdani, 2020;Mohamed & Shafiai, 2021;Suardi & Abdul Hafidz, 2021). Pengelolaan zakat, infaq dan shadaqah serta waqaf yang sering terjadi di masyarakat belum dikelola dengan baik, dilihat dari segi organisasi pengelolaan dan pendistribusiannya.…”