As in many high‐income countries, there is increasing awareness towards organic farming in many low‐ and middle‐income countries. Sustained local demand is an essential requirement for further adoption of organic farming by smallholders, who typically have only limited access to export markets. Until now, only few studies have explored the local willingness to pay (WTP) for organic products in low‐ and middle‐income countries in real purchase situations. This paper analyses the consumers' WTP for organic rice in urban and suburban Indonesia using an incentive‐compatible auction based on the Becker–DeGroot–Marschak (BDM) approach. We further study the effect of income and a randomised information treatment about the benefits of organic food on respondents' WTP. Estimates suggest that respondents are willing to pay an average price premium of 20% compared with what they paid for conventional rice outside our experiment. However, our results also indicate that raising consumers' WTP further is complex. Showing participants a video about health or, alternatively, environmental benefits of organic food was not effective in further raising WTP. The results can be used as a basis for the design of alternative awareness measures to increase knowledge, interest and demand for organic food.

While there is a global consensus that agricultural systems need to be transformed to be more sustainable, possible pathways and challenges to this process are still debated. We analyse the challenges and opportunities involved in transforming smallholder farming to organic agriculture in Indonesia, where the intense application of Green Revolution technologies came at enormous environmental costs. We adopt a transdisciplinary approach to identify possible pathways towards organic agriculture, based on an analysis of farmers’ knowledge and barriers to adoption, value and belief systems, and institutional structures, including policies and regulations. We present our empirical findings as ‘system knowledge’, ‘target knowledge’ and ‘transformation knowledge’ and incorporate insights from both academics and practitioners. We draw on evidence from large-scale surveys, field experiments, in-depth interviews, participant observation and document analysis. A key insight of our research is that Indonesia does not lack initiatives towards organic farming, but that these various initiatives have different motivations, goals and strategies. This misalignment detracts from the transformational potential of organic agriculture and is responsible for the hitherto limited success of the organic transition. Our findings suggest that policy action at multiple levels is required, guided by an inclusive strategy that is drawn up in a participatory manner.

Social norms and perceptions within farming networks can influence the adoption of new agricultural practices. In Indonesian rice farming communities, norms around the desired level of rice plant greenness are widespread, with some farmers valuing deep green plants. Since greenness levels depend on the content of chlorophyll in the plants, which in turn depends on nitrogen fertilizer inputs, these norms can lead to high usage of chemical fertilizer. This study uses a mixed-method approach to examine whether social norms, personal beliefs, and perceptions about peers’ opinions influence rice farmers’ fertilizer input decisions. We combine quantitative regression analyses with qualitative content analysis to explore these dynamics. Our findings show that farmers who are unaware of a saturation point for fertilizer application tend to use more chemical nitrogen and less organic fertilizer. These farmers are also less willing to experiment with new farming practices that might reduce plant greenness but improve soil health. However, second-order perceptions – beliefs about whether lower greenness levels lead to talking within the farming community – do not significantly affect fertilizer use or farmers’ willingness to try new methods. A survey experiment further confirms that increasing the salience of potential talking has little effect on farmers’ willingness to experiment with new practices. Dyadic regressions reveal that actual fertilizer adoption behaviors of neighboring farmers are more predictive of fertilizer input decisions than neighbors’ greenness norms. This suggests that while social norms around plant appearance exist, farmers’ decisions are more strongly influenced by their own knowledge and the observable actions of their peers.