Agricultural risks in Indonesia: Farmers’ perception on agricultural risks (A case study: farmers of food crops in Bogor Areas)

Abstract

Agricultural risks are a serious matter faced by farmers. The objectives of this study were to identify agricultural risks and risks scores at farm households based on the perception of food crop farmers and to develop effective strategies to deal with agricultural risks. The study was conducted from May to September 2011 in Bogor areas. The analysis methods used in this study were qualitative-descriptive, FGD, SWOT, IE and QSPM. The results showed that based on farmers' perceptions, the agricultural risks included production risks, market risks, human risks, institutional risks and financial risks. The highest impact of the risks on farm was the production risk, mainly influenced by pests and diseases. Risk management strategies implemented by farmers were through the use of inputs. Meanwhile, if there was a failure that interfered with family income and the sustainability of farming, farmers would choose to use the income from off-farm work, or to borrow from other parties as a manifestation of risk management strategies. The results of the study also showed that farming activities in Bogor areas were in a stable position. Alternative strategies that need to be considered in coping with agriculture risks were that the government should: (1) be consistent with agricultural policies that had been issued, (2) strengthen the agribusiness development program, (3) encourage investment in agribusiness of food crops subsector, (4) perform the intensification and diversification of agricultural activities, (5) consolidate farmers through institutional development of farmers’ groups and institutional partnership (contract farming), and (6) protect the rights of farmers by legislation and regulation.