In-and-Out of Tobacco Farming: Shifting Behavior of Tobacco Farmers in Indonesia
2. Materials and Methods
2.1. Tobacco Farmer Survey: Sample
2.2. Comparing Groups of Farmers
2.3. Regression Analysis on Determinants of Farming Decisions
2.4. Focus Group Discussions (FGDs)
3.1. Shifting Status
3.2. Farmers’ Characteristics Based on Shifting Status
3.3. Determinants of Shifting Behavior
3.4. Results from Focus Group Discussion (FGDs)
Conflicts of Interest
Appendix A. Guiding Questions and Concepts for Focus Group Discussions
Appendix A.1. Current Farmers
- How much can you say do you know the tobacco industry (actors—buyers and sellers, where the tobacco leaves go and who use/consume them)?
- What is the general experience in tobacco farming? What are the most important issues for farmers?
- Probe their views on pricing (how price is determined, who make the decision on the selling price of tobacco).
- Probe their view on inputs (how do they obtain input, how do they pay-cash, loan, is input considered in determining price of tobacco).
- Is there any difference between contract and non-contract farmer regarding pricing and inputs?
- Probe income fluctuation (what factors cause fluctuation).
- Do they sometime keep the land fallow or engage in crop rotation to keep the soil productive in the long run?
- Do you experience fluctuation in other crops also?
- Probe loans/debts (these are for clarification and follow-up, if they do not come up in the discussion).
- How profitable is tobacco farming?
- How profitable tobacco farming compared to other crops?
- Probe how do they compute net gain, and account for the labor involved in farming, including their own labor (these are for clarification and follow-up, if they do not come up in the discussion).
- Negative profit: is it the way they calculate input cost or was last year especially bad year?
- How was your profit last year compared to last year in tobacco farming? How about the profit from other crops?
- How important is tobacco farming for them, relative to other economic activities?
- Probe the relative contribution of other activities to the household income?
- If not profitable why they still farm tobacco.
- What other crops are you growing aside from tobacco? Why?
- What they think the impact of tax increase on their business?
- Have they considered shifting to other crops and leaving tobacco faming?
- Probe why.
- What other crops?
- Do you think your children will continue working in tobacco planting activities in the future? Probe why
- If not how do you prepare them?
- Labor exchange between farmers in the same village.
- Division of labor (participation in the tobacco farming) by age?
- Do you have free time to do more leisure or other activities?
Appendix A.2. Former Tobacco Farmers
- Experience in tobacco farming?
- Why you left tobacco farmin—what factors made you to decide leaving tobacco farming?
- Have you completely switched or still on off farming tobacco; if completely switch why; if still off and on why?
- Are you better off now compared to when still farming tobacco?
- When you were still doing tobacco farming what was the contribution of tobacco income to your total income?
- Do you take less loan now than before?
- Do you feel more food secure now than before?
- Did household food security factor at all into your decision to switch?
- Do you have more time now to do economic, leisure or other activities?
- What do you do with input items purchase for tobacco farming
- What factors would make you switch back to tobacco farming
- Impact of increase in taxation
- What do you think the impact of tax increase on tobacco farming?
- If there were increase in the selling price of tobacco would you consider shifting back to farming tobacco?
- What factors would make you switch?
- Magati, P.; Lencucha, R.; Li, Q.; Drope, J.; LaBonte, R.; Appau, A.B.; Makoka, D.; Goma, F.; Zulu, R. Costs, contracts and the narrative of prosperity: An economic analysis of smallholder tobacco farming livelihoods in Kenya. Tob. Control 2019, 28, 268–273. [Google Scholar] [CrossRef] [PubMed]
- Makoka, D.; Drope, J.; Appau, A.; LaBonte, R.; Li, Q.; Goma, F.; Zulu, R.; Magati, P.; Lencucha, R. Costs, revenues and profits: An economic analysis of smallholder tobacco farmer livelihoods in Malawi. Tob. Control 2017, 26, 634–640. [Google Scholar] [CrossRef] [PubMed]
- Sahadewo, G.A.; Drope, J.; Li, Q.; Nargis, N.; Witoelar, F. Tobacco or not tobacco: Predicting farming households’ income in Indonesia. Tob. Control 2020. [Google Scholar] [CrossRef] [PubMed]
- Chingosho, R.; Dare, C.; Van Walbeek, C. Tobacco farming and current debt status among smallholder farmers in Manicaland province in Zimbabwe. Tob. Control 2020. [Google Scholar] [CrossRef]
- Appau, A.; Drope, J.; Witoelar, F.; Chavez, J.J.; Lencucha, R. Why Do Farmers Grow Tobacco? A Qualitative Exploration of Farmers Perspectives in Indonesia and Philippines. Int. J. Environ. Res. Public Health 2019, 16, 2330. [Google Scholar] [CrossRef][Green Version]
- Appau, A.; Drope, J.; Goma, F.; Magati, P.; LaBonte, R.; Makoka, D.; Zulu, R.; Li, Q.; Lencucha, R. Explaining Why Farmers Grow Tobacco: Evidence From Malawi, Kenya, and Zambia. Nicotine Tob. Res. 2019. [Google Scholar] [CrossRef]
- Mazwi, F.; Chambati, W.; Mudimu, G.T. Tobacco contract farming in Zimbabwe: Power dynamics, accumulation trajectories, land use patterns and livelihoods. J. Contemp. Afr. Stud. 2020, 38, 55–71. [Google Scholar] [CrossRef]
- Scoones, I.; Mavedzenge, B.; Murimbarimba, F.; Sukume, C. Tobacco, contract farming, and agrarian change in Zimbabwe. J. Agrar. Chang. 2018, 18, 22–42. [Google Scholar] [CrossRef][Green Version]
- Human Rights Watch. “The Harvest is in My Blood”: Hazardous Child Labor in Tobacco Farming in Indonesia; Human Rights Watch: Amsterdam, The Netherlands, 2016. [Google Scholar]
- Sujoso, A.D.P.; Martiana, T.; Martini, S. The Overview of Green Tobacco Sickness among Tobacco Farmers in Jember District, Indonesia. J. Berk. Epidemiol. 2020, 8, 181–189. [Google Scholar] [CrossRef]
- Rachmat, M. Development of National Tobacco Economy: Developed Country Policy and Lesson Learned for Indonesia. Analisis Kebijakan Pertanian. 2016, 8, 67–83. [Google Scholar] [CrossRef]
- Assunta, M.; Dorotheo, E.U. SEATCA Tobacco Industry Interference Index: A tool for measuring implementation of WHO Framework Convention on Tobacco Control Article 5.3. Tob. Control 2015, 25, 313–318. [Google Scholar] [CrossRef] [PubMed][Green Version]
- Astuti, P.A.S.; Assunta, M.; Freeman, B. Why is tobacco control progress in Indonesia stalled?—A qualitative analysis of interviews with tobacco control experts. BMC Public Health 2020, 20, 1–12. [Google Scholar] [CrossRef] [PubMed]
- Drope, J.; Li, Q.; Araujo, E.C.; Harimurti, P.; Sahadewo, G.A.; Nargis, N.; Durazo, J.; Witoelar, F.; Sikoki, B.S. The Economics of Tobacco Farming in Indonesia; The World Bank: Washington, DC, USA, 2017. [Google Scholar]
- Sahadewo, G.A.; Drope, J.; Firman, W.; Li, Q.; Raphael, L. The Economics of Tobacco Farming in Indonesia: Results from Two Waves of a Farm-Level Survey; Tobacconomics, Health Policy Center, Institute for Health Research and Policy, University of Illinois at Chicago: Chicago, IL, USA, 2020; Available online: www.tobacconomics.org (accessed on 10 December 2020).
- Muttaqin, A.S.; Suarma, U.; Nurjani, E.; Kurniadhini, F.; Prabaningrum, R.; Wulandari, R. The impact of climate variability on tobacco productivity over Temanggung Regency, Indonesia. E3S Web Conf. 2019, 76, 04003. [Google Scholar] [CrossRef]
- White, H. A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity. Econometrica 1980, 48, 817. [Google Scholar] [CrossRef]
- Li, Q.; Magati, P.; Lencucha, R.; Labonté, R.; Makoka, D.; Drope, J. The Economic Geography of Kenyan Tobacco Farmers’ Livelihood Decisions. Nicotine Tob. Res. 2019, 21, 1711–1714. [Google Scholar] [CrossRef] [PubMed]
- Fink, G.; Jack, B.K.; Masiye, F. Seasonal Credit Constraints and Agricultural Labor Supply: Evidence from Zambia. In Seasonal Credit Constraints and Agricultural Labor Supply: Evidence from Zambia; National Bureau of Economic Research: Cambridge, MA, USA, 2014. [Google Scholar]
- Burke, M.; Bergquist, L.F.; Miguel, E. Sell Low and Buy High: Arbitrage and Local Price Effects in Kenyan Markets. Q. J. Econ. 2019, 134, 785–842. [Google Scholar] [CrossRef]
- Jack, W.; Kremer, M.; De Laat, J.; Suri, T. Borrowing Requirements, Credit Access, and Adverse Selection: Evidence from Kenya. In Borrowing Requirements, Credit Access, and Adverse Selection: Evidence from Kenya; National Bureau of Economic Research: Cambridge, MA, USA, 2016. [Google Scholar]
- Ahmed, S.; McIntosh, C.; Sarris, A. The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia. Am. J. Agric. Econ. 2020, 102, 1154–1176. [Google Scholar] [CrossRef][Green Version]
- Ashraf, N.; Gine, X.; Karlan, D. Finding Missing Markets (And A Disturbing Epilogue): Evidence From An Export Crop Adoption And Marketing Intervention In Kenya. Am. J. Agric. Econ. 2008, 91, 973–990. [Google Scholar] [CrossRef][Green Version]
- Natarajan, N. Moving past the problematisation of tobacco farming: Insights from South India. Tob. Control 2018, 27, 272–277. [Google Scholar] [CrossRef]
- Rahman, S.; Ahmed, N.F.; Ali, M.; Abedin, M.; Islam, S. Determinants of tobacco cultivation in Bangladesh. Tob. Control 2019, 29, 692–694. [Google Scholar] [CrossRef]
- Clark, M.; Magati, P.; Drope, J.; Labonté, R.; Lencucha, R. Understanding Alternatives to Tobacco Production in Kenya: A Qualitative Analysis at the Sub-National Level. Int. J. Environ. Res. Public Health 2020, 17, 2033. [Google Scholar] [CrossRef] [PubMed][Green Version]
- Nyambara, P.S.; Nyandoro, M. ‘Tobacco Thrives, but the Environment Cries’: The Sustainability of Livelihoods from Small-Scale Tobacco Growing in Zimbabwe, 2000–2017. Glob. Environ. 2019, 12, 304–320. [Google Scholar] [CrossRef]
|District||Current Tobacco Farmer||Former Tobacco Farmer||Total|
|Tobacco farmers in wave 1, 2016|
|Stayed current tobacco farmer||437||66.21|
|Shifted out of tobacco farming||55||8.33|
|Former tobacco farmers in wave 1, 2016|
|Stayed former tobacco farmer||93||14.09|
|Shifted into tobacco farming||75||11.36|
|Whether or not Current Tobacco Farmers Considered Switching in 2016||Stayed Current in 2017||Shifted out of Tobacco in 2017||Total|
|Did not consider switching||411||47||458|
|Pearson Chi-squared test||= 5.611||p-value = 0.018|
|Opting out Reasons Stated by Former Tobacco Farmers, 2016||Stayed Former in 2017, %||Shifted into Tobacco 2017, %||Pearson Chi-Squared, p-Value|
|Inability to sell crop||13.98||8.00||0.224|
|More attractive alternative||7.53||10.67||0.478|
|Effect on land||9.68||8.00||0.705|
|Relationship with contracting co||2.15||0.00||0.201|
|Variables||Former Tobacco Farmers, 2016||Tobacco Farmers, 2016|
|A: Stayed Former, 2017||B: Shifted into Tobacco, 2017||Wilcoxon Rank-Sum Test, |
|C: Stayed Current, 2017||D: Shifted out of Tobacco, 2017||Wilcoxon Rank-Sum Test, |
|Households characteristics in wave 1|
|Head of household (HH) age in years||50.46||49.67||0.648||50.00||49.93||0.799|
|HH tobacco farming experience in years||-||-||-||20.07||14.09||0.001|
|HH years of schooling in years||5.796||6.227||0.366||5.314||5.40||0.629|
|1 if contract tobacco farmer||-||-||-||0.185||0.218||0.558|
|1 if Jember||0.226||0.200||0.686||0.281||0.38||0.124|
|1 if Temanggung||0.0968||0.120||0.630||0.158||0.054||0.041|
|1 if Magelang||0.0860||0.133||0.326||0.160||0.04||0.014|
|1 if Bojonegoro||0.269||0.147||0.056||0.279||0.40||0.064|
|1 if Lumajang||0.323||0.400||0.299||0.121||0.13||0.898|
|Asset, in log||14.88||15.15||0.494||15.33||14.23||0.090|
|Farming outcomes in wave 1|
|Land cultivated, hectare||13.79||7.493||0.994||12.23||4.24||0.087|
|Share of land for tobacco||-||-||-||38.21||29.92||0.017|
|Share of land for non-tobacco||88.20||89.30||0.814||61.30||66.40||0.095|
|Yield in kg, tobacco||-||-||-||539.3||165.70||0.000|
|Tobacco sales, PPP||-||-||-||1276.3||391.40||0.000|
|Tobacco income, PPP||-||-||-||−224.1||20.53||0.6973|
|Crop sales dry season, PPP||2402.3||2518.5||0.776||308.6||280.60||0.666|
|Crop income dry season, PPP||1448.0||1361.6||0.703||174.8||148.40||0.669|
|Crop sales wet season, PPP||1569.9||2644.1||0.186||1614.7||586.90||0.005|
|Crop income wet season, PPP||914.0||1939.8||0.109||711.8||1.94||0.068|
|Agricultural wage income, PPP||375.3||533.4||0.259||354.6||534.80||0.233|
|Non-agricultural wage income, PPP||1800.0||1953.0||0.127||1421.2||1451.00||0.493|
|Household labor hours||366.9||393.0||0.831||817.6||714.70||0.066|
|Income per hectare, PPP||10,332.2||12,010.1||0.013||−1292.2||1703.50||0.904|
|Dependent Variable: Farming Outcomes||A: Stay Former||B: Into Tobacco||C: Stay Current||D: Out of Tobacco|
|Income per hectare (US$1000 PPP), wave 1||0.000357||0.00102 **||−0.00137||−0.00000722|
|Rainfall deviation, wave 1||−0.115||0.0397||0.330 *||−0.254 **|
|1 if have tobacco farming contract||−1.358 ***||−0.968 ***||2.029 ***||0.297 ***|
|log of agricultural wage income, wave 1||−0.000702||−0.0000320||0.000234||0.000500|
|log of non-agricultural wage income, wave 1||−0.000396||0.000934||0.0000544||−0.000592|
|log of asset, wave 1||−0.00259||−0.00186||0.00856||−0.00410 *|
|log of cultivated area, wave 1||−0.0155 ***||−0.0112 ***||0.0311 ***||−0.00431|
|HH schooling||0.00673||0.00950 **||−0.0158 ***||−0.000454|
|Robust Standard Error||Robust||Robust||Robust||Robust|
|Theme||Sample Farmer Quote|
|Relationship with tobacco companies||“The main problem is there is only one buyer here.” (Lumajang)|
“The middleman doesn’t pay right away… only when he is paid by the factory.” (Jember)
|Profitability||Profitable (Referring to the 2017 harvest): “it was the best year. Some was 80 K. My harvest was also 80 K. it was the most expensive ever.” (Lumajang)|
Not profitable (referring to the 2016 harvest):
“We just left it behind because we do not know who wants to buy it. No one wants to buy it. That’s the problem. We can plant tobacco. We have harvested it. But, there is nobody wants to buy it. So, it was left behind until it becomes damaged. On contrary, when we plant chili, though the price falls away, it is still in demand in the market.” (non-contract farmer from Mediunan)
|Credit/Capital||Lack of credit from other sources as a reason for taking on contracts with tobacco companies: “…suppliers do not want to give loans because if the farmers suffer from fail, they indeed do not want it to happen or to buy the tobacco.” (Sugigwaras)|
Lack of access to capital for non-tobacco economic activities: “Of course I want to develop my shop, but I do not have enough capital.” (Mediunan)
|Weather||“Tobacco is the only crop that thrives in the tobacco-growing (dry) season” (Bojonegoro)|
(Responding to the top two reasons they grow tobacco): “First of all, the weather. Second, it is already tradition in this Bades village” (Lumajang)
|Culture/Tradition||“For me, I would take the risk. My land is located in lower ground so I do not worry about the plants to die. That’s why I keep planting tobacco. When it is time to plant tobacco, I plant tobacco. Come rain or shine. It is my tradition.” (Bojonegoro)|
|Information||Lack of information:|
When asked where they get information on tobacco leaf prices: “Just from the buyers” (Magelang)
When asked if they receive information about weather or climate from the government’s Meteorology, Climatology and Geophysical Agency (BMKG): “No, never. Just from TV.” (Lumajang)
Successful information sharing:
“In the early planting season, I am always invited by plantation service [authors’ note: this service is governmental] to get information about the weather from BMKG. And then I share the information to the other farmers. In 2016, there has been a warning that the weather is wet so that I informed it to the farmers.” (Temanggung)
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.
© 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Sahadewo, G.A.; Drope, J.; Li, Q.; Witoelar, F.; Lencucha, R. In-and-Out of Tobacco Farming: Shifting Behavior of Tobacco Farmers in Indonesia. Int. J. Environ. Res. Public Health 2020, 17, 9416. https://doi.org/10.3390/ijerph17249416
Sahadewo GA, Drope J, Li Q, Witoelar F, Lencucha R. In-and-Out of Tobacco Farming: Shifting Behavior of Tobacco Farmers in Indonesia. International Journal of Environmental Research and Public Health. 2020; 17(24):9416. https://doi.org/10.3390/ijerph17249416Chicago/Turabian Style
Sahadewo, Gumilang Aryo, Jeffrey Drope, Qing Li, Firman Witoelar, and Raphael Lencucha. 2020. "In-and-Out of Tobacco Farming: Shifting Behavior of Tobacco Farmers in Indonesia" International Journal of Environmental Research and Public Health 17, no. 24: 9416. https://doi.org/10.3390/ijerph17249416