Transformation of the rural economy

Otsuka, Keijiro; Zhang, Xiaobo

doi:10.2499/9780896293830_11

Cited by 1 publication

(1 citation statement)

References 98 publications

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“…This means that farmers do not receive income accrued to superior decisions. According to the updated review of the literature by Otsuka and Zhang (2021), such conclusion seems to be also supported by recent studies.…”

Section: Shortfall Of Contract Farmingsupporting

confidence: 54%

Strategy for Transforming Indonesian Agriculture

Otsuka

2021

Bulletin of Indonesian Economic Studies

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Traditionally, a major role of agriculture in Asia was to produce enough staple foods for food security through intensification of farming system. Today, however, agriculture is expected to contribute to multiple development goals. First, since wage rate has been increasing in high-performing Asian countries, including Indonesia, farm size expansion to introduce labor-saving mechanization must be promoted to reduce production cost, particularly in rice farming. Second, considering increasing demand for palm oil and global concern with decreasing forest environment, achieving intensification of oil palm production without extensification is an urgent issue. Third, responding to increasing demand for high-value agricultural products (HVPs), such as fresh fruits and vegetables, for better nutrition and health, agricultural resources must be shifted to the production of these products. Fourth, considering that urban areas are excessively congested, rural areas must provide increased employment opportunities by promoting rural industrialization. Based on the literature review, this article proposes strategies (1) to 1 I am heavily indebted to S. Suyanto of the World Agroforestry Center in Bogor for assistance and useful comments. maintain comparative advantage in rice farming, (2) to intensify oil palm production in a sustainable fashion, (3) to increase production of HVPs, and (4) to promote rural industrialization simultaneously in the context of Indonesia.

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Section: Shortfall Of Contract Farmingsupporting

confidence: 54%