摘要:Indragiri Hilir (Inhil) is the largest coconut producer in Riau, where 63% of its residents work as coconut farmers. However, Inhil’s GDP per capita is considerably lower than that of other regions in Riau. This research aims to understand whether the agricultural contract between the farmer and the firm is beneficial towards improving farmer’s revenue. Treatment effect model is employed in this research with two main equation to (i) discover the income level differences between contract farmer and independent farmer; and to (ii) discover the driving factors behind farmers decision to join contract. The results show that (i) the independent farmers has higher average revenue than that of contract farmer; and (ii) the driving factors behind farmer’s decision in making contract are the numbers of family members, production variable cost, and organizational transaction cost.
关键词:Coconut farming; agricultural governance; contract farming; treatment effect model