New Farmers’ Incentives under the New Tangerine Farming Support: The Case of Tuban, Indonesia

Abstract

This research analyzes incentives for new tangerine farmers by different intermediaries in Tuban, Indonesia. Direct interviews and a survey were conducted in 2014 and 2015 with new farmers, Bakul (small local collectors), wholesalers, tangerine middlemen, and the government office. New tangerine farmers in Tuban use three alternative logistic routes: the Bakul and/or wholesalers, the tangerine Tebasan system, and the tangerine Ijon system. This study found that new farmers obtain over twice the margins when they sell tangerines to the Bakul and/or wholesalers compared with farmers who use the tangerine Tebasan system and the tangerine Ijon system. However, some new farmers prefer to use the tangerine Tebasan system or the tangerine Ijon system to obtain immediate cash before harvest terms, to avoid harvesting failure, and to enjoy leisure in summer, although these tangerine farmers gain relatively small margins compared to those who sell tangerines to Bakul and/or wholesalers.