Analysis of Contract Farming Pattern and Income Comparison of Potato Farmers on Atlantic and Granola Varieties

Abstract

Contract farming is a practice in order to decrease the risk and uncertainty commonly done on farming. Generally, contract farming is divided into two types that are production contract and market contract. Contract farming is commonly done on the strategic and high-risk agricultural? commodities, one of them is the potato. Potato (Solanum tuberosum) is a commodity with high risk. One of the contract farming done on potato commodity is a contract occurred between farmer group and PT. “KLM” in Ijen District Bondowoso Regency, East Java Province Indonesia. The writer would like to review more related to the contract farming pattern occurred and compare the potato farmers’ income following the contract farming and independent contract. This research was done from February until April 2019. Samples in this research used probability sampling on 106 potato farmers consisting of 76 farmers incorporated within contract farming and 29 farmers independently. The research results showed that contract farming intertwined was the contract farming type of market. The comparison of potato farmers income following the contract farming was lower than independent potato farmers income with the difference of IDR 4,515,417.49.