Determinants of Farm Commercialization in Tidal Wetland Rice Farming


Abstract

Tidal lowlands are increasingly promoted for rice production in Indonesia in response to rising food demand and limited availability of suitable agricultural land. However, rice farming in these environments is characterized by unstable water regimes, high production risk, and weak market integration, which often limit farmers' transition from subsistence to commercial production despite increased use of modern inputs. This study examines the level and determinants of rice farming commercialization in the tidal lowlands of Sambas Regency, West Kalimantan, Indonesia, with explicit attention to agroecological risk. Primary data were collected through structured interviews with 143 rice farmers operating under different tidal overflow conditions. Commercialization is analyzed using multiple indicators capturing output sales, input market engagement, and cash income, and their determinants are examined using ordinary least squares (OLS) regression. The results indicate that rice farming in the study area is evolving toward semi-commercial systems, marked by strong integration into input markets but limited output commercialization and cash income. Tidal overflow conditions significantly shape commercialization outcomes, highlighting the role of agroecological risk in constraining surplus generation. Larger farm size, higher education levels, and the adoption of standard operating procedures (SOPs) are associated with stronger market participation, while higher household consumption needs and access to credit are negatively related to output sales and farm cash income, suggesting that credit is frequently used for consumption smoothing rather than productive investment. Overall, the findings reveal a segmented commercialization pathway in tidal rice systems and underscore the need for risk-reducing water management, improved farmer capacity, and better-targeted rural credit to support sustainable commercialization in tidal lowland agriculture.

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Online ISSN: 2737-4777, Print ISSN: 2737-4785, Published by Nan Yang Academy of Sciences Pte. Ltd.