RJOAS, 9(81), September 2018
DOI https://doi.org/10.18551/rjoas.2018-09.59
FACTORS INFLUENCING THE CONVERSION TO ORGANIC RICE FARMING
Heryadi D. Yadi*, Rofatin Betty
Agribusiness Study Program, Faculty of Agriculture, University of Siliwangi, Indonesia
*E-mail: heryadiday63@yahoo.co.id
ABSTRACT
The making of implementation policies to promote organic rice farming must be based on a
good understanding of the factors influencing farmers’ decision to convert to organic rice
farming. This research aimed to answer and understand more deeply the factors influencing
farmers’ decision to switch from conventional to organic rice farming. This research was a
case study on Jembar II Farmers Group in Margahayu Village, Indonesia. The results
showed that all the variables, namely farmer characteristics, institutions, and farmer
behaviors simultaneously affected the farmers’ conversion decision from conventional to
organic rice farming. Meanwhile, partially, only two variables affected the farmers’ decision to
convert to organic rice farming, namely farmer behaviors related to product prices and
productivity as well as marketing institutions.
KEY WORDS
Organic rice farming, conventional farming, farmer characteristics, institutions, behaviors.
Organic farming is growing rapidly in all parts of the world. Since 2000, the organic land
area has increased by almost 15 million hectares to 50.9 million hectares with total producers
of 2.4 million, of which more than three-quarters of the producers were in developing
countries (Willer and Lernoud, 2017). The growth of the organic farming in developing
countries is triggered by the consumer preference to choose safer and healthier food
ingredients and the development of people trends or lifestyle, ultimately leading to the high
demand for organic products, particularly in developed countries (Karki et al., 2011; Widiarta
et al., 2011). The high demand of developed countries’ consumers and high prices cause
organic products yielded in developing countries to be largely exported. This certainly
provides opportunities for exporters in developing countries to buy organic products from
farmers at premium prices. However, the farmers still often face obstacles, one of which is
low agriculture productivity. Hence, organic farming in developing countries is becoming a
tool of socio-economic development and is supported by various international and national
development initiatives (Reddy, 2010; Twarog, 2010; Kilcher & Echeverria, 2010). In 2007,
the global trade of organic products reached USD $46.1 billion or 36.2 billion Euro (IFOAM,
2009). Even, it reached more than 60 billion Euro in 2014 (FiBL Survey, 2016).
The growth rates of organic production depend on different factors and vary from
country to country and region to region (Broadt & Schug, 2008). In 2011, the organic land
area throughout Asia covered 3.69 million hectares. In 2015, it increased by 7.5% to 3.97
million hectares. Meanwhile, in Indonesia, the organic land area reached 74,034.09 hectares
in 2011 and increased by 76% to 130,384.38 hectares in 2015, so the share percentage of
the total world organic farming area increased from 0.14% in 2011 to 0.23% in 2015 (Willer
and Lernoud, 2017).
Organic products in developing countries tend to be more in demand due to its various
benefits and advantages compared to conventional farming. Organic farming can protect and
maintain soil health, significantly improve soil quality in terms of physical, fertility, and
biological properties, enable ecosystems to better adapt to the impacts of climate changes,
and increase the potential for carbon sequestration from the soil (Surekha et al., 2013;
Pathak et al., 1992; Carpenter Boggs et al., 2000; Bhooshan et al., 2011). In terms of
economic welfare, organic farming contributes to increasing farmers' income through higher
productivity than conventional rice farming, and premium prices (Surekha et al., 2013;
Reddy, 2010). Meanwhile, the social contribution of organic farming is to avoid/ anticipate
484
RJOAS, 9(81), September 2018
natural damages such as infertile soil, water pollution, biodiversity erosion, greenhouse gas
emission, food scarcity, and pandemics related to chemical agriculture and pesticide
poisoning, eventually leading to healthy communities (Scialabba, 2013). In principle, the
ecological or organic farming system recalls the importance of ecological foundations of the
existing farming systems. Organic agriculture has been proposed as an important means to
achieve these goals (Seufert, 2012).
The number of organic rice farmers in East Priangan, West Java Province as the
research location often experiences fluctuation. In 2011, there were 2,600 farmers. Based on
this situation, the researchers were interested to examine the main reason underlying the
farmers to switch from conventional to organic rice farming. The understanding of the factors
influencing farmers' conversion decision from conventional to organic rice farming is a
prerequisite for formulating policies that will encourage the productivity of organic rice in the
research location. There have been many studies examining the factors influencing farmers’
conversion to organic agriculture, both in developed and developing countries. Several
studies have suggested that the main factors influencing farmers’ decision to convert to
organic agriculture include environmental awareness, health, promising market prospects,
economic benefits (Karki et al., 2011), profits, higher selling prices and incomes resulting
from organic farming practices (Dabbert et al., 2004; De Cock, 2005, Sukristoyonubowo et
al., 2011). Meanwhile, the non-economic (social) influencing factors are healthier rice quality
due to minimal pest and disease (Sukristoyonubowo et al., 2011).
The previous studies have shown various factors determining farmers’ conversion
decision from conventional to organic agriculture. These factors were used as the basis in
the hypothesis formulation in this research. Until now, there has been no any study
explaining the reasons underlying the farmers in the development area of East Priangan to
switch from conventional to organic rice farming. The main purpose of this research was to
answer and understand more deeply the factors influencing farmers’ conversion decision
from conventional to organic rice farming in East Priangan region.
METHODS OF RESEARCH
This research was a case study on Jembar II Farmers Group in Margahayu Village,
Manonjaya Subdistrict, Tasikmalaya Regency. The research location was selected
purposively by considering that Manonjaya Subdistrict is one of the centres of rice production
in Tasikmalaya Regency, which is also the development area of organic rice. The analysis
unit of this research was individual. The data collection were carried out through a census of
46 members of Jembar II Farmers Group in Margahayu Village, Manonjaya Subdistrict,
Tasikmalaya Regency. The respondents of this research were organic farmers who had
implemented organic SRI rice farming practices.
In addition to distributing questionnaires, face-to-face interviews were also carried out
with the organic rice farmers to obtain all the information needed in this research. The
number of respondents interviewed was 46 people. The questionnaires were designed to
obtain data related to the socio-economic characteristics of organic farmers, including age,
sex, farming area, education, and farming experience.
To understand the decision-making process, the respondents were asked about the
reasons underlying their decision of conversion from conventional to organic rice farming.
The respondent behaviors and their main reasons to switch to organic rice farming were
analyzed using a set of statement items with a Likert-scale ranging from (1) Very Disagree to
(5) Very Agree. Pre-test questionnaires were also distributed to 20 respondents. From the
pre-test questionnaires, several farming indicators that had confusing or difficult statements
to be answered by the respondents were then omitted or refined. Only understandable
statements were taken to be further analyzed.
In addition to primary data collection from the organic rice farmers, in-depth interviews
were done with various stakeholders engaged in the organic rice development. The
interviews aimed to obtain additional information in relation to social, economic, and political
issues emerging along with the organic rice development in the research area. The results of
485
RJOAS, 9(81), September 2018
the interview stakeholders were analyzed with a narrative analysis method and then
presented as additional information to the respondent analysis results.
The data analysis in this research was carried out with different treatments according to
the data types obtained and the hypotheses formulated. According to Miles and Huberman
(1984) in Sugiyono (2009), qualitative data are processed through three stages of analysis,
namely data reduction, data display, and conclusion drawing. Data reduction is done by
summarizing, selecting key elements, and focusing on important things according to
research needs. Data display is presenting data in the form of brief descriptions and direct
quotes to support quantitative data. Meanwhile, conclusion drawing is made after obtaining
findings on the object of research.
The primary data of this research were obtained with a quantitative method, from the
questionnaire filling results. The data were then edited and processed using SPSS 19.0 for
Windows. Furthermore, the processed data were examined using Parametric Statistics for
the hypothesis testing of each factor (partially). Hypothesis testing was also done using
Multiple Linear Regression to determine the simultaneous effect of the factors on the
farmers’ conversion decision from conventional to organic rice farming.
The equation of the multiple linear regression analysis is shown as follows:
Y = bo + b1 X1 + b2X2 + b3 X3
Where: Y = Dependent Variable (Conversion Decision to Organic Rice Farming);
bo = Interception; b1 ,b2, b3 , b4 are regression coefficients; X1 is Farmer Characteristics, X2 is
Institutions dan X3 is Farmer Behaviors.
The factors influencing the decision of conversion to organic rice farming
simultaneously were known by testing the F value using the following formula:
F count = Jk regression / k
Jk residue / (n-k-l)
Where: Jk regression = b1x1iyi + b2x2iyi + b3x3iyi + b4x4iyi + b5 x5i yi; Jk residue = (YiYi)2; if Fcount Ftable (α = 0.05), Ho will be accepted, meaning that all independent variables (X)
simultaneously have no effect on the dependent variable (Y) and if F count F table, Ho will be
rejected, meaning that all independent variables (X) simultaneously have an effect on the
dependent variable (Y).
The effect of each factor on the decision of conversion to organic rice farming was
determined by testing the t-value using the following formula:
bi
thit = ______
Sbi
Where: Sbi = variance bi , while Variance bi = 2 (x’x)-1; if tcount ttable, Ho will be accepted,
meaning that Variable Xi has no effect on Variable Y, If tcount ttable, Ho will be rejected,
meaning that Variable Xi has an effect on Variable Y.
Furthermore, the accuracy degree of the relationship between the independent
variables and the dependent variable was measured using the following formula (Sudjana,
1996):
2
R = Jk regression
2
Yi
RESULTS AND DISCUSSION
Based on the analysis results, all the variables (farmer characteristics, institutions,
farmer behaviors) simultaneously had a considerable effect on the farmers’ decision of
486
RJOAS, 9(81), September 2018
conversion from conventional to organic rice farming with a significance value >α = 0,01.
Meanwhile, partially, only two variables greatly affected the farmers’ conversion decision to
organic rice farming with a significance value <α = 0,01, namely farmer behaviors related to
rice prices and productivity as well as marketing institutions.
The respondent (farmer) characteristics together with the institutions and behaviors
affected the conversion decision from conventional to organic rice farming. This is in line with
several previous studies conducted by Kallas et al. (2009), Rigby et al. (2001), and Scialab
badan hattam (2002) finding that some of the most relevant factors influencing farmers’
decision to switch to organic agriculture are farmer characteristics, farmer behaviors, farmer
opinions, non-economic factors, characteristic differences in terms of demographics,
economic situation and the farmer attitudes compared to conventional farmers, technical
factors and institutional support.
Information on the higher premium prices and productivity of organic rice compared to
conventional rice would greatly influence farmers’ decision to switch to organic rice farming.
It cannot be denied that each farmer always wants to get high profits from their farming. The
high profits can be achieved through increased productivity coupled with high product prices.
This is consistent with the results of Heryadi and Rofatin’s (2016) study stating that the main
preference of farmers in the selection of organic SRI rice farming system is to obtain the
optimum profits. The price of organic rice in the research location was IDR 650,000.-/ quintal
(processed paddy) higher than the conventional rice price of IDR 500,000.-/ quintal
(processed paddy). The average productivity of organic rice was 7.45 tons/hectare, larger
than the average conventional rice productivity at Manojaya District level which amounted to
6.771 tons/hectare (processed paddy) (Planning and Development Agency of Manonjaya,
Tasikmalaya Regency, 2013).
Furthermore, the existence of organic rice marketing institutions that can accommodate
all the organic rice yields of farmers and the premium price guarantee led the farmers to
convert to organic rice farming. Organic rice in the research location was easily marketed
through its farmers' group. By the farmers' group, organic rice would be then sold to
Gapoktan SIMPATIK with guaranteed markets and reasonable prices as expected by
farmers.
CONCLUSION AND SUGGESTIONS
Simultaneously, all the variables, including farmer characteristics, institutions, and
farmer behaviors, have a great effect on farmers’ decision to switch from conventional to
organic rice farming. Meanwhile, partially, the variables that considerably affect farmers’
conversion decision to organic rice farming are farmer behaviors related to rice prices and
productivity as well as marketing institutions. In this regard, alternative policies that can
encourage farmers to convert to organic rice farming are very needed so as to further
develop organic rice productivity and improve the welfare of farmers. Some of the alternative
policies needed include the establishment of institutions that can guarantee the marketing
continuity and premium prices for organic rice and the improvement of farmers' ability from
technical aspects to increase rice productivity.
ACKNOWLEDGEMENTS
The authors thank the LP2MP of University of Siliwangi, Indonesia, which has provided
funding for this research.
REFERENCES
1. Bhooshan, N., Prasad C. (2011): Organic Farming: Hope of posterity. In: Organic
Agriculture: Hope of Posterity (Eds.), UP Council of Agricultural Research (UPCAR),
Lucknow, India 1-10.
487
RJOAS, 9(81), September 2018
2. Brodt, S. & Schug, D. (2008): Challenges in Transitioning to Organic Farming inWest
Bengal, India. In Proceedingsof 16th IFOAM Organic World Congress.June 16-20 2008,
Modena, Italy.
3. Carpenter Boggs L, Kennedy AC, Reganold JP. (2000): Organic and biodynamic
management effects on soil biology. Soil Sci Soc Am J 64: 1651-1659.
4. Dabbert, S., Haring, A. M.&Zanoli, R. (2004): Organic Farming Policies and Prospects.
Zed Books, London and New York.
5. De Cock, L. (2005): Determinants of Organic Farming Conversion. In Proceedings of the
XIth EAAECongress of the European Association of AgriculturalEconomists. The Future
of Rural Europe inthe Global Agri-Food System. 2005, Copenhagen, Denmark.
6. FiBL and IFOAM. (2015): The World of Organic Agriculture Statistics & Emerging Trends
2015. Research Institute of Organic Agriculture (FiBL-IFOAM) Switzerland – Germany.
7. Heryadi, et al (2016): SRI Rice Organic Farmers' Dilemma: Between Economic Aspects
and Sustainable Agriculture. Proceedings 1st Global Conference on Business,
Management and Entreupreuneurship (GCBME-16 ). Advances in Economics, Business
and Management Research, volume 15. Atlantis Press. Pp 176-180.
8. Karki, Lokendra; Schleenbecker, Rosa; Hammb, Ulrich (2011): Factors influencing a
conversion to organic farming in Nepalese tea farms. Journal of Agriculture and Rural
Development in the Tropics and Subtropics Vol. 112 No. 2 (2011) ISSN: 1612-9830,
p113–123
9. Kilcher, L. & Echeverria, F. (2010): Organic Agriculture and Development Support
Overview. In H. Willer, & L. Kilcher (Eds.), The World of Organic Agriculture- Statistics
and Emerging Trends 2010 (pp. 92–96). FiBL and IFOAM, Frick, Switzerland and Bonn,
Germany.
10. Mayrowani, Henny. (2012): The Development of Organic Agriculture in Indonesia. Forum
Penelitian Agro Ekonomi Bogor. Volume 30 N0. 02. Desember 2012, p91-108.
11. Mzoughi, N. (2011): Farmers adoption of integrated crop protection and organic farming:
Do moral and social concerns matter? Ecological Economics, 70 (8), 1536–1545.
12. Padel S, Lampkin N (1994). Conversion to organic farming: An overview. In Lampkin NH,
Padel S (eds.): The economics of organic farming. An international perspective: CAB
International, Wallingford, pp. 295-310.
13. Pathak H, Kushwala JS, Jain MC. (1992): Eyahiation of manurial value of Biogas spent
slurry composted with dry mango leaves, wheat straw and rock phosphate on wheat
crop. Journal of Indian Society of Soil Science 40: 753-757.
14. Scialabba, El-Hage N. (2013): Organic agriculture's contribution to sustainability. Online.
Crop Managementdoi: 10.1094/CM-2013-0429-09-PS.
15. Seufert, V. (2012): Organic Agriculture as an Opportunity for Sustainable Agricultural
Development. Policy Brief No. 13 Part of the Research Project: Research to Practice –
Strengthtening Contributions to Evidence-based Policymaking. Institute for the Study of
International Development. Canada
16. Surekha K, Rao KV, Shobha Rani N, Latha PC, Kumar RM. (2013): Evaluation of
Organic and Conventional Rice Production Systems for their Productivity, Profitability,
Grain Quality and Soil Health. Agrotechnol S11: 006. doi: 10.4172/2168-9881.S11-006
17. Shaban, A. A. (2015): Factors Influencing Farmer's Decision to Shift to Organic Farming:
The Case of Gaza Strip. British Journal of Economics, Management & Trade. Article No
BJEMT.2015.006 ISSN: 2278-098X. 5(1): 78-87
18. Twarog, S. (2010): Clearing a path for sustainable Trad: FAO, IFOAM and UNCTAD
Announce the Global Organic Market Access (GOMA) Project. In H. Willer, & L. Kilcher
(Eds.), The World of OrganicAgriculture - Statistics and Emerging Trends 2010 (pp. 92–
96). FiBL and IFOAM, Frick, Switzerland and Bonn, Germany.
19. Willer, H. & Lernoud, J. (2017): Organic Agriculture Worldwide 2017: Current Statistics.
Research Institute of Organic Agriculture (FiBL), Frick, Switzerland.
20. Widiarta, A., Adiwibowo, S. & Widodo. (2011). Analysis of Sustainability Organic Farming
Practise on Farmer. Sodality: Jurnal Transdisiplin Sosiologi, Komunikasi, dan Ekologi
Manusia Bogor.ISSN: 1978-4333 Vol. 05 No. 01 April 2011, p71-89
488