Restriction of the Marginal Land Sugarcane Farmers in Indonesia

International Journal of Ecology & Development

Year 2015; Volume 30, Issue No. 3; Int. J. Ecol. Dev. ISSN 0972-9984 ( Print ); ISSN 0973-7308 (Online) Copyright © 2015 IJED (CESER Publications)

Restriction of the Marginal Land Sugarcane Farmers in Indonesia M. Fashihullisan1, Suwarto2, Ravik K3 and Darsono4 1

Dept. Community Development. Sebelas Maret University, Indonesia Email: [email protected]

2

Dept. Social Economic of Agricultural. Sebelas Maret University, Indonesia Email: [email protected] 3

Dept. Education. Sebelas Maret University, Indonesia. Email: [email protected]

4

Dept. Social Economic of Agricultural. Sebelas Maret University, Indonesia Email: [email protected]

ABSTRACT The study aims at studying the condition of marginal land used for sugarcane farming operation in order to know the classification of marginal land and potential marginal land, analysis of the reasons for selecting sugarcane farmers of marginal land and do the analysis steps in overcoming the limitations of sugarcane farmers in sugarcane farming land. This study will be conducted in four different villages in the district of Dukuhseti, Pati, Central Java since the four villages were found a lot of marginal land for cane farming with the case study method. Data were collected by interview, observation, documentation and focus group discussion. Some of the conclusions in this study were as follows: 1) Land in the study can be classified into four classifications; normal, marginal, very marginal and critical. 2) Land with the normal condition was 173 ha or 20, 69% of all the land in the research setting so that the rest of nearly 80% was marginal land, very marginal and critical. 3) Cane farmers could be classified into five groups: cane farmers traders, intermediaries cane farmers, big tenant cane farmers, landowners of small cane farmers and small tenant cane farmers.

Keyword: sugarcane, farmer, marginal land JEL Classification System: Q15 Mathematics Subject Classification: 91-02

1. Introduction According to the data from the Director General of Plantations (2012), Central Java province is the province with the third largest sugarcane acreage in Indonesia (55 890 ha), after East Java (198 944 ha) and Lampung (114 255 ha). With the third largest area in the Indonesian, most of the sugarcane land of a province of Central Java is in the north of Central Java.



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International Journal of Ecology & Development

The north districts of Central Java have the land area of sugarcane with 65.11% (9 districts) of the sugarcane fields in Central Java. While the remaining 34.89% of sugarcane land spread over other 23 districts. From this data, the imaged region of northern Central Java has a large enough area of sugarcane land, whereas the northern Central Java region has its limitations due to the majority of rain-fed land and salinity are high as they are close to the shoreline. Pati, Central Java which is located in the Northern Territory is the district with the largest sugarcane land area in Central Java. The sugar factory located in Pati regency are two factories i.e PG Trangkil and PG Pakis Baru. Pati can be said as one of the most important districts in Central Java in farming sugarcane and sugar industry, because beside Pati becomes the largest sugarcane area in Central Java, Pati is also the only district in Central Java which has a sugar mill more than 1 piece. Subdistrict Dukuhseti is one of the districts in Pati village which the majority of villages are located close to the coastline, but Dukuhseti sub-district is one of the major districts producer of sugarcane (560.6 ha). Geographical conditions are fairly close to the shoreline making Dukuhseti region has lowest land from the sea surface i.e 2 m. (BPS Pati, 2013). Some villages in the district of Dukuhseti which are fairly close to the shoreline and has a wide enough sugarcane area including the village of Bakalan, Ngagel, Kenanti, Alasdowo, Dukuhseti, Kembang, Tegalombo, and Puncel. Preliminary research in some of the villages showed that almost all sugarcane is grown on land with dry conditions with a high enough salt content. Because without irrigation in the dry season and flooded during the rainy season in 2-3 months makes this land so difficult to cultivate crops other than sugarcane. Marginal land contributes to the high cost and low productivity of farm land. Such conditions would certainly impact on sugarcane farmers who are farming on the marginal land. The impact on sugarcane farmers includes the impact of economic and social impacts. Sugarcane farmers with marginal land will, of course, be burdened by the high cost of farming and farming high risk. This will result in low and uncertainty income so that this causes economic limitations. The conditions of a limited economy will affect the social conditions and the choices made by the sugarcane farmers. This study will be conducted in four villages in the district Dukuhseti, Pati, Central Java since the four villages were found a lot of marginal land for cane farming with the case study method. Data were collected by interview, observation, documentation and focus group discussion. Observation and documentation were done on marginal land in the four research setting, the village of Ngagel, Alasdowo, Dukuhseti, and Kembang. Interviews and focus group discussion were conducted on sugarcane farmers who did sugarcane farming in the four villages. The study will assess the condition of marginal land used for sugarcane farming operation that will be known the classification of marginal and potential land. The study will also undergo analysis of the reasons for selecting sugarcane farmers of marginal land for sugarcane farming. This study will also conduct the analysis steps in overcoming the limitations of sugarcane farmers in sugarcane farming land. 2. Marginal Land Land resources are one of the factors that determine the success of a system of farming because almost all agricultural activities are based on land resources. Molders (2012), defines the land as part of a landscape which includes the notion of the land, the physical environment including climate, topography/relief, hydrology and vegetation cover. Land is an area which include all character traits



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inherent in the atmosphere, soil, geology, hydrology and plant and animal populations, both steady or recycling, as well as human activities on it so that the land has a natural and cultural characteristics. Citing from Y. Tange, et al (2010), marginal lands are characterized by land uses that are at the margins of economic viability (subsistence). While Molders (2012), defines the marginal land is land that has a number of limiting factors, and if the land is cultivated, the land will create unbalanced result between the input and the results obtained, and will be potentially large enough to be degraded when there is an error in the management. Dale, et al (2010), also defines economically that the "land is marginal if the combination of yields and price barely covers the cost of production". This means that the production value of land is not economically balanced with the cost to be incurred to conduct land management. One of the causes of degradation becoming marginal land is high soil salinity in the landscape. Sea water is the largest source of salinity. The land with sea water has high salt content. In the dry season when the dry land and the waters shrink, sea levels become higher so that sea water flows to the mainland through the surface or intrusion (Garcia, 1997) Asana and Kale (1995), found that a saline land is usually in coastal areas, especially in areas bordering tidal shoreline. The decrease in salinity can occur when rainwater dilutes the salts either vertically or laterally. Increased levels of salt in the soil can occur when there is a fairly high evaporation. If the salt content in the soil is too high, it can make the plant poisoning. The rice plant is a plant that has a middle tolerance to salinity so that when the salinity is high enough, rice production can be reduced to 50%. Salvati, et. al. (2009), found that dynamics impact differently on the environmental quality of dry coastal and marginal, inland areas are increasing poverty, inequality in resource availability, and social exclusion. The results of observations and interviews show that each block of land to each village has the potential plants. Here is a land classification based on the types of crops that can be grown in the research setting: Table. Agricultural Land Classification in Research Setting No 1

Classification Land with Multi Plants

2

Land of Rice and Sugarcane

3

Rice land

4

Cane land

Potential crop Can grow rice, cane, Watermelon, and other crops can be well planted with rice and sugarcane

Rental cost 10-15 million

Vellage Ngagel

Land block Gading I, Gading II, Cungkup.

7-10 million

Ngagel Alasdowo

can only be planted with rice plants

4-13 million

can only planted sugarcane

5- 9 million

Cluwah Randu, Krajan and Skrangkong Selempung Gayang, Tualang dan Jeruk Dukoh Kulon, Tanggul and Selempung Ngipik dan Ledok Bengkok Carik Galbesi, Bendo, Sedekeng and Rohwaru. Bajang Kancil, Tomerto and Gatel

ber with

Dukuhseti Ngagel Dukuhseti

Kembang Alasdowo Dukuhseti

Kembang



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In general, lands which could potentially be planted with a wide variety of plants have land rental high prices. Potentially arable land with only one type of plant will have a fairly low rental rates. Likewise, land planted with sugarcane can only have a relatively low rent. This is because it is influenced by the marginality of the land so that it will impact on the potential high cost with low productivity of farm land. Of the four villages, it is only the land in the village of Ngagel arable for various crops. The lands in the village of Ngagel which are arable for various types of plants are landed with the availability of irrigation and drainage facilities and do not have high salinity levels. Such conditions make the land can still be irrigated during the dry season so that the level of soil salinity can also be suppressed. Likewise, the land will not be easily flooded because drainage facilities are available. Land in the research setting which based on the marginality divided into four classifications, namely normal, marginal, very marginal and critical. : Table. Land Marginality Classification of Land in Research Site No

Classification of land

Availablity of irrigation facilities Irrigation Inflator canal well

Availablity of drainage facilities

1

Normal

Available

Available

Available and works well

2

Marginal

Inavailable

Available

Available and works well

3

Very Marginal Critical

Inavailable

Inavailable

Inavailable

Inavailable

Available and does not work well Inavailable

4

Level of salty

Period of flooded area in rainy season

Not salty even in dry season Not salty even in dry season salty in dry season salty in dry season

Less than 1 week

Low

Low

More than 1 week, Less than 1 month

Medi um

Low

1-2 month

High

Low

More than 2 months

High

Medium

Failure risk of crops Rice Cane

Land with a normal classification is an arable land with a wide variety of plants. This land has irrigation facilities in the form of irrigation or pumping wells. Land during the dry season like this can remain irrigated, if in the irrigation channel is no longer available, it can be done pumping water from a well pump. Land with the normal classification of rice plants can be planted throughout the year, namely rice with three harvest times. Land with normal classification can also be planted with other crops such as watermelons, especially in the dry season. Land classification is also very good when planted with sugarcane because it has a low risk of crop failure, but thing to consider is that the classification of land normally has a rental fee which is quite expensive because of the potential for high productivity. Classification of marginal land is a land that only has irrigation facilities such as well pumps and drainage channels working quite smoothly. Land with this classification if it is planted throughout the year it would require pumping well that will require a high cost in the dry season. Hence, this kind of land like is usually be planted with rice plants two harvest times, from December to July. Sugarcane is more accurately be planted on this type of land because it can grow throughout the year and during the dry season is no longer in need of irrigation.



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A very marginal land classification is a land with no working irrigation and drainage facilities. Hence, in the dry season it is completely dry and in the wet season it is inundated for quite a long period of time. Land with this classification can only be planted rice plants with either one harvest in a year i.e April to July. When the dry season comes, rice crop will suffer from drought because it cannot be irrigated, while in the rainy season it will easily die because of stagnant water inundating the land in a relatively long time. The classification of this type of land would be more productive if it is planted with sugarcane because the cane will be able to survive in the dry season and can survive in puddles during the rainy season. A Land with a critical classification does not provide any irrigation facilities, drainage bud has high salinity levels. The land like this is hard to be planted with rice because it has a high risk of death. Land classified as a critical land can only be planted with sugarcane although the risk of plant failure is high. Here is the land area of the object of the research which is based on the classification of land marginality Table. Land Area Based Classification of Marginality No

Land Classification Normal

2 3

Marginal

Dukuhseti

165

Kembang

40

1

4

Ngagel

width (ha) 173

173

20,62 %

Marginal

Ngagel

91

91

10,85 %

Very

Alasdowo

98 303

36,11%

272

32,46%

839

100%

Critical

Village

Alasdowo

25

Dukuhseti

144

Kembang

103

Total

Width (ha)

Percentage

The table shows that the normal land in the study is at 20, 62% of the total land available. Land that is classified as critical to marginal reaches 79, 38% or almost 4/5 of all existing land. This suggests that marginal land dominate land in the study.

2.1 Marginal Land for Sugarcane Crop Sugarcane can be grown in a variety of land classification, either normal, marginal, very marginal or critical. Classification of land is not the only reason for the potential land planted with sugarcane. Besides the marginality of the land, farm management and ease of harvesting cane sugar is another consideration for a potential crop grown on the land. In more detail, the area of the study can be grouped by classifying potential marginality of the land and crop into the following table:



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Table. Classification of Marginality in Land Block No

1

2

3

Land Classification

Village

Normal

Ngagel

Marginal

Very Marginal

Potential Plant

Ngagel

Alasdowowo

Dukuhseti

4

Critical

Block

Kembang Alasdowo Dukuhseti

Kembang

Width (ha)

Total width (ha)

Potential sugarcane (ha)

Gading I

All type of crops

49

Gading II Cungkup Tualang Gayang Cluwah Jeruk Krajan Skrangkong Bengkok CarikPetinggen Dukoh Kulon Tanggul Bendo Ngipik Ledok Randu

All type of crops All type of crops Rice Rice Rice and Cane Rice Cane Rice and Cane Cane

42 21 61 56 14 21 38 53 7

173

112 (64,74%)

91

14 (15,38%)

Rice Rice Cane Cane Rice Cane

60 30 75 23 17 25

303

158 (52,14%)

Galbesi Sedekeng Rohwaru Selempung Bajang Kancil Tomerto Gatel

Cane Cane Cane Cane Cane Cane Cane

60 30 18 36 13 67 23

272

272 (100%)

Total

839

556 (66,27%)

Potential sugarcane crops are to be planted on the land in the study because it is potential to be planted in an area of 556 ha of 839 ha of all the land. Normal land which is potential for sugarcane is only in the area of 112 ha (20.14%) of the 556 ha, so that nearly 80% of the potential land is planted with sugarcane from the fields to the classification of marginal, very marginal and critical.

3. Sugarcane Farmers Sugarcane farmers are farmers who farm sugarcane on managed lands. Citing from Reijntjes, et al (1999) farming is a complex tangle that consist of soil, plants, animals, equipment, labor, other inputs and environmental influences that are managed by a person who called the farmers according to their needs and aspirations. Farmers are seeking input and output of the existing technology. This view sees farming as a production system in which a number of inputs will produce a number of outputs. The input of cane farmers in the farming of sugarcane includes sugarcane seeds, agricultural mechanization, fertilizer, and labor. Plant of baby sugarcane is only required in the first year / Ungaran and no longer needed in the next year called keprasan. Mechanization of agricultural is required for the processing and transport of agricultural products. Labor can be obtained from the internal household and less labor needed it will be obtained from the daily workers.



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Sugarcane farmers are doing farming for one year until the plant can be harvested. Sugarcane only requires sufficient water in early infancy. When the period of maturation and harvesting of sugarcane, it requires no water because it will make the decline in the yield and productivity of crops and harvesting costs are high because the trucks cannot enter into the land. Sugarcane farmers are doing farming on the land to produce crops that will be processed in the factory of cane sugar. The main result sugarcane process is sugar while a byproduct of sugarcane processing is called drops/molasses. Sugarcane farmers will get the results about 66% of the sugar produced in the processing of sugarcane crop and 2.5 kg of molasses for every quintal of sugarcane is processed by sugar mills. This process of selling sugar and molasses is the income earned by the sugarcane farmers in sugarcane farming. Here is some of the classification based on the capacity of sugarcane farmers and the economic activity undertaken:

Table. Sugarcane Growers Classification Based on Economic Capacity and Activity No 1

Classification of Cane Farmers Cane farmer traders Intermediaries cane farmers

Economic Activity

Type of Landownership Own property, rent Rent

Width of Land More than 10 ha fluctuate, depending on the conditions

Own property and rent

More than 2 ha

3

Big tenant cane farmers

Farming cane operation and buying other farmers’ cane Farming cane operation, intermediaries in the buying process that was done by sugarcane farmers merchants and traders and helping to manage farming of other farmers. Farming cane operation with large capacity

4

Landowners of small cane farmers

Farming cane operation with small capacity and only limited to owned own land

Own property

Less than 2 ha

5

Small tenant cane farmers

Farming cane operation with small capacity and only limited to rent land

Rent

Less than 2 ha

2

Farmer traders are farmers who do economic activity not only in the form of sugarcane farming but also trading activities. Sugarcane farming operation is a guarantee to gain access to loans from the sugar mill and also as a means to ensure that the sugar mill’s great power-producing will make a certainty of supply of raw material for sugar. Trading activity conducted by farmers trader is to utilize special facilities provided by the sugar mills in order to obtain greater profits. Special facilities are to ease incorporating the sugar cane to the factory and get a loan at any time by a large enough amount of the loan. Special facilities of farmers traders will provide flexibility in both cane farming and trading activity. If there is another farmer who needs money when the harvest was still longer, then traders



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will buy it. The same thing, when there are difficulties of farmers to harvest and incorporate the sugarcane to the sugar mills owned by farmers, then farmer trader will also purchase it. Intermediaries cane farmers are those who utilize the activities undertaken by farmer traders. Economic activity is conducted by farmers so high, that traders need help from another farmer. Farmers trader require intermediaries to get the cane from another farmer that this, of course, should be done by the sugarcane farmers intermediaries. Sugarcane farmers are also important intermediaries to assist farmers in managing traders sugarcane land managed for large capacity resulted in the distribution of the large area making it difficult to independently manage the land. Intermediaries cane farmers should conduct cane farming independently, although, on the other hand, the help farmer traders. This is important because intermediaries cane farmers would be enough to get the information and trust from the other farmers. Sugarcane farmers often take advantage of the intermediaries by selling their crops to sugarcane farmers when regarded less profitable traders, otherwise they will buy sugarcane from farmers to other farmers without involving the trader. The differences between the traders and the main intermediaries are that small capacity so it often limits the ability to undergo a farming operation and trading activities. Intensive relationship with farmers will help intermediaries farmer traders maintain their ability and often protect themselves from the risks of failure. Big tenant cane farmers are those who do farm in a large capacity. This is the type of cane farmers who have earnestly do farming activities that often do not perform any other economic activity. They rented land with large areas to pursue intensive business capacity that can meet the needs of household. Hence, the farmers of this type tend to be serious about doing cane farming in the long term and do not move to any jobs. Landowners of small cane farmers are those who are forced to do cane farming because sugarcane is the only plant fits the land. They do sugarcane farming as it is based on the assumption that the land would be more profitable sugarcane when administered alone than when rented out to other farmers. Hence, small cane farmers will lease the land to the other cane farmers if the land rental prices are considered higher than the results to be obtained from sugarcane farming alone. Small cane tenants farmers are different from small cane farmers. Small cane farmers tenant is a small cane farmer who tries their luck by farming sugarcane despite having to rent other people's land. Small cane farmers are very vulnerable tenants at risk because of the limited capacity of the farm and the ability to manage the farms are quite small. Small cane tenants farmers are usually agricultural laborers in the sugar cane farm in which they want to try to practice the technical ability cane farming independently or someone who really wants to try to sugarcane farming despite not having the technical ability of farming cane operation.

3.1. Reasons Sugarcane Growers Managing Marginal Land Below is a table matrix reason cane farmers manage the land in the study:



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Table. Land Matrix Reasons for Selection of Sugarcane Farming Land Classification

Normal

Marginal

Very Marginal

Critical

Can be a supply for sugar factory in early harvest time Reachable enough

Chance of expanding the land with low cost

Chance of expanding land and sugar mill’s trust with low price

Reachable enough

Chances to expanding the land when facing failure in farming by only selling to farmer trader. Chances to expanding land even with a high risk of failure. No more choice except for cane farming operation

Farmer Classification Cane farmer traders

Intensifying farming operation

Intermediaries cane farmers

Reachable

Big tenant cane farmers

Intensifying farming operation

Low price of rent

Low price of rent

Landowners of small cane farmers

More profitable with rent planted with another plant

Easy enough to try the farming operation.

Small tenant cane farmers

Unreachable

Unreachable

Cane farming operation is more profitable rather than other types of farming with low-risk Less reachable

reachable

Farmer trader has more interest on the capacity of farming so as to easily get the trust from sugar mill or from other farmers. The trust becomes important for farmers because traders with large capacity will be recognized by the sugar mills as farmers who are able to supply cane sugar factories in large quantities. The belief of the sugar mill has an impact on the ease lending facility and ease of inserting cane sugar. Trust in other farmers becomes important because other farmers will see the farmers' ability to pay merchants in buying his cane. Hence traders often farmers will rent the land in all classifications that will be able to increase the capacity of farming. The risk of sugarcane farming in marginal or critical lands will be easily borne, because farmers have a variety of types of lands being managed. Small cane farmers landowners are farmers who only have a reason to manage the marginal land as marginal land ownership because of compulsion. They often face with two choices, namely doing sugarcane farming or renting the land. Both of these options are often difficult to be selected by the farmer. Different reasons exist in small cane farmers tenant because it is based on the ability of the land rent. They have limited capital in sugarcane farming that is only able to rent the land at a low price. Marginal land is land that has low rental rates, so the small tenant farmers have no other choice in renting land better because of limited ability and inability to compete for better land when dealing with other cane whose farmers farming capacity is greater. 3.2. Step Sugarcane Farmers in Addressing Limitations of Marginal Land Here are the steps undertaken to overcome the limitations of sugarcane farmers in marginal areas.



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Table. Matrix Steps in Overcoming Limitations Sugarcane Farmers Marginal Land Classification of Land Land Classification Farmer Calssification Cane farmer traders Intermediaries cane farmers Big tenant cane farmers Landowners of small cane farmers Small tenant cane farmers

Marginal

- Planting on NovemberDecember when rainfall begins -Cutting off the cane in early dry season Doing purchase before harvest time, so that in the early harvest time it is harvested by farmer trader

Very Marginal

Critical

Planting on MayJune when rainfall begins or stops - Cutting off the cane in early dry season

Doing farming operation with the right time to fertilize based on tendency of season

Doing purchase before harvest time, so that in the middle of harvest time it is harvested by farmer trader

Taking care of the cane very carefully

Cane farmer traders, intermediaries cane farmers and big tenant cane farmers have the ability to determine the schedule of farming operation. They have the ability to decide when to do the planting, when to perform maintenance and when to harvest. The decision is not overly dependent on the other people so that it can be adjusted when the land will suffer drought and when it will be flooded. Different conditions happen to landowners of small cane farmers and small tenant cane who do not have the ability to make decisions independently. They have a dependency with farmer’s merchants in determining when to do so when farmer harvesting traders are not willing to buy a cane or not immediately cut down sugarcane, it will make the dead or damaged. Likewise, the ability to meet the fertilizer became an obstacle as small farmer owners and tenants do not follow a partnership with the sugar mills and did not follow the government’s program. Landowners of small cane farmers and small tenant cane must perform an intensive interaction with farmers merchants. If they have a special relationship with the farmer traders, then they will be preferred by farmers and traders, especially in logging to get fertilizer. Therefore, they cannot easily sell to other farmers when the trader does not want the intense relationship.

4. Discussion and Conclusion The following are conclusions in this study are as follows: 1. Land in the study can be classified into four classifications, namely normal, marginal, very marginal and critical. The land with normal qualification has a quite expensive rental fee which causes difficulties in utilizing the land as a sugarcane farming while the land with marginal, very marginal, and critical are potential in this farming. 2. Land in the normal condition is only 173 ha or 20, 69% of all land of the research site so that the rest of nearly 80% is marginal land, is very marginal and critical. This condition makes the research location is the potential land for sugarcane farming. Sugarcane is a quite strong plant to survive in the limited land.



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3. Land with a normal classification is an arable land with a wide variety of plants. This land has irrigation facilities in the form of irrigation or pumping wells. Land with normal classification can also be planted with other crops such as watermelons. 4. Marginal land is a land that only has irrigation facilities such as well pumps and drainage channels working quite smoothly. Land with this classification if it is planted throughout the year it would require pumping well that will require a high cost in the dry season. 5. A very marginal land classification is a land with no working irrigation and drainage facilities. Hence, in the dry season it is completely dry and in the wet season it is inundated for quite a long period of time. Land with this classification can only be planted rice plants with either one harvest in a year i.e April to July. When the dry season comes, rice crop will suffer from drought because it cannot be irrigated, while in the rainy season it will easily die because of stagnant water inundating the land in a relatively long time. 6. A land with a critical classification does not provide any irrigation facilities, drainage but has high salinity levels. The land like this is hard to be planted with rice because it has a high risk of death. 7. Farmers cane can be classified into five groups: cane farmer traders, intermediaries cane farmers, big tenant cane farmers, landowners of small cane farmers and small tenant cane. Cane farmer traders and big tenant cane farmers are the farmers with their big capacity and capital. Intermediaries cane farmers, landowners of small cane farmers, and small tenant cane farmers are the opposite, they are the farmers with small capital and capacity. 8. Cane farmer traders, intermediaries cane farmers and big tenant cane farmers have the flexibility to choose the normal marginal land, while small sugarcane farmers of small landowners and tenant farmers have no choice because the land can only manage in marginal land. 9. Cane farmer traders, intermediaries cane farmers and big tenant cane farmers have the ability to perform scheduling farming so as to reduce the limitations of marginal land, while small sugarcane farmers of small landowners and tenant farmers land does not have the ability to determine the schedule of marginal land management that often can not avoid the risk due to the limitations of marginal land.

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