Factors A ffecting Farmer ’Autonomy and Sustainability of Smallholder Coffee Farming u sing SEM Lisrel

Abstract

Coffee is an important commodity in international trade. However, coffee farming in Indonesia is mostly managed by smallholder farmers who still apply traditional technology. This study was aimed to: (1) analyze the level of institutional role, agribusiness capacity, autonomy of farmer, and sustainability of smallholder coffee farming; (2) analyze factors affecting autonomy of farmers and sustainability of smallholder coffee farming. This research was carried out in Bondowoso and Malang Regency, East Java, Indonesia through the approach of survey conducted on 376 coffee farmers of all smallholder farmings of Robusta and Arabica coffee. Samples were collected by multistage random sampling done in the two regencies. Survey method was used in this study. Data were collected during July-October 2019 using the method of questionnaire, interview, and observation. Data were analyzed by descriptive and inferential method through SEM Lisrel. Result of the study showed that institutional support was categorized as low, while agribusiness capacity, autonomy of farmers, sustainability were included in moderate category. Factors found to affect the level of farmer’ autonomyof farmers were the support of institutional role and agribusiness capacity of farmers. Factors directly affected the sustainability of smallholder coffee farming was autonomy of farmers, whereas the role of institution and agribusiness capacity of farmers were found to indirectly affect sustainability. To strengthen autonomy of coffee farmers towards the sustainability of smallholder coffee farming, agribusiness capacity building and strengthening is necessary. Therefore, all stakeholders (government, private institution, and community) will immediately design such program that involves the synergy of multi-institutions related to smallholder coffee farmers.