Empowerment of Farmer Institutions in Improving Farmer's Bargaining Position

Abstract

The drop in global rubber prices worsens farmer-level rubber selling prices, affecting rubber farmers' economics. One of the efforts to develop the farmer's economy is strengthening rubber farmers' institutional aspects. This study will examine institutional strengthening to stabilize rubber prices at the farmer level and increase farmers' negotiating power. This study employs a qualitative case study methodology. Data were descriptively examined. The findings of this study explain that the rubber prices decline in rubber farmers' economies does not improve from time to time. The decline in rubber prices resulted in land conversion, decreased production, and fewer rubber farmers. On the other hand, rubber marketing institutions have improved rubber farmers' price stability bargaining position and increased rubber farmers' economy. This research implies that rubber marketing institutions through farmer associations can increase farmers' bargaining position, maintain rubber price stability and contribute to the empowerment of rubber farmer commodity institutions.