Do wealthy farmers implement better agricultural practices? An assessment of implementation of Good Agricultural Practices among different types of independent oil palm smallholders in Riau, Indonesia

Palm oil has become a leading vegetable oil over the past 30 years and smallholder farmers in Indonesia, with more than 12 million hectare the world's largest producer of palm oil, have massively engaged in oil palm (Elaeis guineensis) cultivation. In Sumatra, where more than 60% of Indonesian palm oil is cultivated, smallholders currently cover roughly 50% of the oil palm area. The rapid expansion of palm oil however did not happen without controversy. In current efforts by the Indonesian government, NGO's and private sector to improve sector performance, smallholders are often characterized as the Achilles heel of the oil palm sector due to poor practices and low yields compared to companies. However, 'oil palm smallholders' is a container concept and there has been only limited research into smallholder diversity beyond the organised versus independent farmer dichotomy. This research delves into the implementation of Good Agricultural Practices (GAP) among seven types of independent smallholders in Rokan Hulu regency, Riau province. The research area consisted of a relative established agricultural area on mineral soils and a relative frontier, mostly on peat. Smallholder types ranged from small local farmers to large farmers who usually reside in urban areas far from their plantation and regard oil palm cultivation as an investment opportunity. The underlying hypothesis is that larger farmers have more capital and therefore implement better agricultural practices than small farmers, who are usually more cash constrained. A wide range of methods was applied, including farmer and farm surveys, remote sensing, tissue analysis and photo interpretation by experts. These methods provided data on fertilizer use, nutrient conditions in oil palms, planting material, planting patterns, and other management practices in the plantations. Results show that yields are poor, implementation of GAP are limited and there is much room for improvement among all farmer types. Poor planting materials, square planting patterns, and limited nutrient applications were particularly prevalent. This implies that farmers across different typologies opt for a low-input low-output system for a myriad of reasons and that under current conditions, initiatives such as improving access to finance or availability of good planting material alone are unlikely to significantly improve the productivity and sustainability of the smallholder oil palm sector

In search of sustainable and inclusive palm oil production: The role of smallholders in Indonesia

This dissertation builds on the old debate regarding the role of smallholder farmers in society and links it to the integration of smallholders into modern global value chains. Since the peak in global agro-commodity prices in 2007/08, interest in agriculture has increased again among policymakers and in the private sector. Modern global value chains provide opportunities for smallholder farmers but also increasingly dictate conditions in terms of production practices, and thereby determine conditions for inclusion. The Indonesian oil palm sector provides an interesting case regarding smallholder inclusion in modern global value chains and the role they play in sustainable agro-commodity production. Palm oil production in Indonesia has thrived due to insertion in global value chains, experienced massive smallholder engagement, faces considerable sustainability challenges and illustrates the impacts sustainability initiatives can have on smallholders. It thus provides a promising case to further explore the nexus of sustainable and inclusive development, smallholder agriculture and policy. The primary aim of this dissertation is to advance the understanding of how the oil palm sector can be made more sustainable and inclusive. It does so by exploring independent and organized oil palm smallholders in Sumatra, explaining their emergence and performance, and discussing strategies to improve their performance. Whereas the smallholder oil palm sector clearly has its unique characteristics, this dissertation unpicks some stereotypical views on smallholders and highlights the dynamics impacting farmers’ organizations over time, and thereby contributes to debates on the future of farming

In search of sustainable and inclusive palm oil production: The role of smallholders in Indonesia

This dissertation builds on the old debate regarding the role of smallholder farmers in society and links it to the integration of smallholders into modern global value chains. Since the peak in global agro-commodity prices in 2007/08, interest in agriculture has increased again among policymakers and in the private sector. Modern global value chains provide opportunities for smallholder farmers but also increasingly dictate conditions in terms of production practices, and thereby determine conditions for inclusion. The Indonesian oil palm sector provides an interesting case regarding smallholder inclusion in modern global value chains and the role they play in sustainable agro-commodity production. Palm oil production in Indonesia has thrived due to insertion in global value chains, experienced massive smallholder engagement, faces considerable sustainability challenges and illustrates the impacts sustainability initiatives can have on smallholders. It thus provides a promising case to further explore the nexus of sustainable and inclusive development, smallholder agriculture and policy. The primary aim of this dissertation is to advance the understanding of how the oil palm sector can be made more sustainable and inclusive. It does so by exploring independent and organized oil palm smallholders in Sumatra, explaining their emergence and performance, and discussing strategies to improve their performance. Whereas the smallholder oil palm sector clearly has its unique characteristics, this dissertation unpicks some stereotypical views on smallholders and highlights the dynamics impacting farmers’ organizations over time, and thereby contributes to debates on the future of farming

Collective action in a smallholder oil palm production system in Indonesia: The key to sustainable and inclusive smallholder palm oil?

Indonesian smallholder oil palm generally yield much less than corporate plantations. We analysed a smallholder oil palm production system in West Sumatra which outperformed its nucleus estate plantation, consistently producing yields far above the national average for over 25 years. Its institutional setup allowed farmers to combine the advantages of smallholder and plantation agriculture by capitalizing on collective action. Collective action design principles (Ostrom, 1990; Cox, 2010) are used to assess the institutional setup of a smallholder production system. This case study demonstrates that with a strong institutional arrangement, smallholder oil palm farmers can participate in supply chains on advantageous conditions and substantially increase productivity, thereby contributing to both rural development and land sparing

Collective action, replanting and resilience; Key lessons from 40 years of smallholder oil palm cultivation in the Ophir plantation, Indonesia

International audienceHighlights: • Collective action and farmer organisations are often presented as pathways to sustainable intensification and replanting. • This article aims to provide insights into the resilience of farmer organisations and smallholder oil palm replanting. • We demonstrate how bio-physical, socio-economic, and institutional variables impact the resilience of collective action. • To unlock the potential of farmer organisations, broader collective action is essential, extending beyond smallholders. • This article provides a unique, comprehensive analysis of farmer organisation dynamics spanning 40-years.Abstract: CONTEXT: Oil palm smallholders often have difficulty implementing good agricultural practices and replanting, and tend to obtain low yields compared to corporate plantations. A frequent strategy to improve the sustainability of smallholder production systems is sustainable intensification, aimed at increasing land productivity and farmers' incomes. To facilitate sustainable intensification, many leading public and private sustainability initiatives require farmers to join farmer organisations as a precondition for certification and assistance, with the objective of achieving advantages of scale.OBJECTIVE: The objective of this article is to analyse the resilience of farmer organisations in the Ophir plantation when faced with replanting. We do so by linking actors, situations, and contexts relevant to collective action in five farmer cooperatives in Ophir over a 40-year period. Our aim is to offer unique insights into the enduring dynamics that influence the resilience of farmer organisations, shed light on smallholder oil palm replanting strategies, and draw several key lessons from this case.METHODS: Our findings are based on field visits by the lead author before, during and after replanting. Both qualitative and quantitative data were collected to enable a holistic overview. During visits, 110 interviews with relevant stakeholders were recorded, project reports were collected, as were data on yields, costs, and other information on the functioning of the farming system. Analysis of high-resolution satellite imagery of the Ophir plantation and plantation inspections allowed us to further quantify replanting methods and replanting progress. A combined IAD-SES-NAS framework was used to structure findings and link variables, key events and context.RESULTS AND CONCLUSIONS: Our results show that farmer organisations can facilitate sustainable intensification in smallholder systems, but the resilience of farmer organisations proved diverse during replanting. Thus, farmer organisations are by no means a silver bullet for sustainable intensification. Landscape conditions, palm tree age, smallholder diversity and financial (mis)management play crucial roles in the resilience of farmer organisations and replanting strategies. Significant investment in various types of collective action is needed to encourage sustainable intensification through farmer organisations.SIGNIFICANCE: This article reports a rare holistic analysis of the bio-physical, socio-economic, and institutional aspects impacting collective action and replating in smallholder oil palm plantations. We present significant empirical data, which allows us to link 40 years of interactions between farmers, their institutions, plantations and changing contexts. Thereby we provide unique insights into farmer organisations, collective action and smallholder oil palm replanting.Graphical abstract:https://ars.els-cdn.com/content/image/1-s2.0-S0308521X23002068-ga1_lrg.jp

Unpacking Indonesia's independent oil palm smallholders : An actor-disaggregated approach to identifying environmental and social performance challenges

Processes of globalization have generated new opportunities for smallholders to participate in profitable global agro-commodity markets. This participation however is increasingly being shaped by differentiated capabilities to comply with emerging public and private quality and safety standards. The dynamics within Indonesia's oil palm sector illustrate well the types of competitive challenges smallholders face in their integration into global agro-commodity chains. Because of public concern over the poor social and environmental performance of the sector, many governments, companies, and consumers are attempting to clean up the value chain through self-regulatory commitments, certification, and public regulation. As a result, many of Indonesia's oil palm smallholders face compliance barriers as a result of informality and poor production practices,and threaten to become alienated from formal markets, leading to a bifurcation of the oil palm sector. Recognizing that many oil palm smallholders lack compliance capacity, myriad public and private actors have begun designing initiatives to address compliance barriers and enhance smallholder competitiveness. However, failure to properly account for the heterogeneity of the smallholder oil palm sector will undermine the effectiveness and scalability of such initiatives. By developing a typology of independent smallholder oil palm farmers in the Rokan Hulu district of Riau province, this article reveals the wide diversity of actors that compose Indonesia's smallholder oil palm economy, the types of compliance barriers they face, and sustainable development challenges they pose. In doing so, this article illustrates how global agro-commodity chains can drive agrarian differentiation and offer new insights into the complex dynamics of agricultural frontier expansion