Factors affecting farmers’ decisions in changing agribusiness sector: case study of Japan Internship Program alumni

Abstract

Since 1984, the Japan internship program has been implemented to increase the capacity and income of young farmers in Indonesia. The existence of internship activities has changed the mindset and abilities of farmers in their farming organizations, even some of the trainee had changed their agribusiness sector when this program had ended. The purpose of this study was to identify factors that influenced farmers' decisions in changing their agricultural businesses after the Japaninternship program. This research was conducted in East Java Province, Indonesia from September 2020 to February 2021. The farmers were selected purposively as many as 34 people. Data were analyzed using logit regression analysis. The results of the analysis showed that the factors that significantly influenced farmers' decisions to change the type of agribusiness sector were the motivation level in the business, business experience, the existence of business license, presence of business brands, and participation in agricultural institutions. The existence of Japaninternshipactivities has changed the mindset of farmers to better manage their businesses. In addition, some farmers have even changed their agribusiness sector to a more profitable business.