Journal
RURAL SOCIETY
Volume 29, Issue 2, Pages 116-133Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/10371656.2020.1787621
Keywords
agribusiness engagement; profit-oriented farming; income generation; agribusiness environment; structural equation modelling; women farm participation
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Traditional farming that changes to profitable agribusiness can serve a machine for rural modernisation. This article assesses factors that determined the decision of smallholder vegetable producers to participate in vegetable-based agribusiness and analyses the impact of agribusiness participation arid other determinants on the economic returns. Structural equation modelling was employed to show a proposed model of cumulative causation theory. Data were compiled from a quantitative survey of 357 selected farm households located in major vegetable-producing areas of Bali and Java, Indonesia. Results show that human capital and household endowment motivated farmers to participate in vegetable-based agribusiness. Women's participation significantly contributed to agribusiness participation and agribusiness participation led to income generation. Opportunities exist to expand vegetable-based agribusiness and increase farmers' income by providing adequate access to transportation infrastructure, an advantageous agribusiness environment, and investing in human capital through training and extension services.
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