Understanding the certification and replanting behavior of indonesian oil palm and rubber smallholder farmers
Indonesia is the largest oil palm producer worldwide and 40% of it comes from smallholder farmers, increasing their income and quality of livelihood. However, many smallholder plantations requires replanting/rejuvenation. Smallholder farmers face challenges for replanting their plantations, such as requirements of tools, facilities and infrastructure for land clearing, and the required cost of quality planting material. In addition, newly planted oil palm only start to produce after 3-4 years of planting, therefore smallholder farmers will have to face several years without income from oil palm. To avoid income loss, smallholders can practice underplanting, work off-farm, apply for credit schemes or even trade their land prior to replanting. This research will focus on understanding smallholder farmers’ replanting behavior. In addition, smallholder farmers’ risk attitude and time preferences will also be investigated.