If growers can step up from subsistence production to intensive commercial farming, there should be an impact on their welfare. Profitability of vegetable farming and factors that determine farmers’ intentions to commercialize vegetable-based enterprises in rural areas were examined using factor share and multiple regression approaches. Personal characteristics, changes in technology, and factors affecting the business environment were hypothesized to influence farmers to commercialize vegetable farming. A quantitative survey was used to obtain data from 356 respondents in four vegetable-producing regions of rural east Java and Bali, Indonesia, during 2013–2014. Vegetable farming returns profits. There is an opportunity to expand vegetable-based agribusiness by making farm credit, market information, and crop management technologies more accessible to farmers. To encourage commercial vegetable farming, vegetable agribusiness terminals, with all market infrastructures, could support vegetable production in rural Indonesia. The rural community could profitably engage in vegetable-based enterprises to increase farmers’ income.

Purpose: The purpose of this paper is to analyse factors that determine farmers’ intention to commercialise vegetable-based agribusiness ventures in rural areas and assess the effect of commercialisation on farmers’ income.Design/methodology/approach: The study used a regression approach. Market participation and farmers’ income were hypothesised to be dependent on other external factors. This study employed data compiled from a quantitative survey of 357 farm households located in four major vegetable producing regions of rural East Java and Bali, Indonesia.Findings: Results indicate that household attributes, business environment, supporting facilities and farm characteristics determined farmers to commercialise vegetable farming. Access to credit, seed technology and farm site played high contribution to the market participation. Ultimately, commercial vegetable farming provides an economic advantage regarding increased income. Land fragmentation and status of landholding were identified to influence the net revenue of vegetable farming.Research limitations/implications: This study has a limitation concerning the number of samples and the availability of data and information. The number of samples is 357 which is about 4 per cent of the total population.Practical implications: Establishment of vegetable agribusiness terminals with all market infrastructures, adequate access to market information, credit and human capital investment through training and extension services are also required, will boost market participation. Re-structuring land ownership might be the best step to augment farmers’ income, through consolidation of fragmented fertile lands devoted to intensive vegetable farming.Originality/value: This study was purposely conducted in rural areas where there were subsistence farmers, as this is to improve farmers’ income by commercialising vegetable crops. A novel feature of this finding is the role of access to credit in the commercialisation of vegetable farming and the impact of landholding status on the profitability of intensive farming of high-valued vegetables.

The Indonesian agricultural sector provides a high proportion of employment for the rural community. However, the farmers’ livelihood is relatively low. Sending the farmers to non-formal education will enhance the livelihood of the community. In this study, we analyze the impact of farmer field school on Indonesia’s rural community livelihoods. Data were collected using a participatory approach from 270 farmer groups that completed farmer field school in Sumatra, Java, and Bali. The results show that the farmer field school generated positive impacts on five capitals. Farmers realized the benefits of participating in the field school. They could increase farming efficiency by applying technology innovations, knowledge, and skills obtained from the field school. Farmer livelihoods in the community have been substantially enhanced.

Purpose: The purpose of this paper is to analyze the impact of microcredit and agronomic technology on farm households’ prosperity, and to determine important factors affecting farmers’ access to microcredit and technology adoption in Indonesian intensive farming.Design/methodology/approach: The focus of the study was farmers engaging with chili-based agribusiness in rural areas. Data for this study were compiled from a survey that interviewed 250 farm households. Samples of the study were randomly selected from chili farming community in three regions of Java during 2013–2014. Data were analyzed using structural equation modeling (SEM).Findings: Microcredit provided positive direct and indirect impacts on household prosperity. Microcredit indirectly impacted the well-being through the mediation of technology adoption. Farmers’ characteristics and agribusiness environment determined farmers’ decision to access microcredit and adopt advanced technology. Microcredit and technology have enhanced farmers’ well-being through pathways that enabled farmers to develop farming scale.Practical implications: The government should offer more alternatives to advanced technology and flexible procedures of access to credit at the same time to ensure sustained pathways of rural economic growth in Indonesia.Originality/value: This paper applied a SEM to a proposition of simultaneous causal interrelations among microcredit, technology and farmers’ prosperity.

This article assesses the welfare impact of intensive chilli farming and determines the factors motivating farmers to engage in commercial farming. This study uses a structural equation model that measures the direct and indirect effects of explanatory variables on intensive chilli production and welfare. This study uses data of field surveys of randomly selected 220 farmers in three regions of Java. The results show that stepping up to intensive and profit‐oriented farming improved farmers' welfare. Internal and external factors, directly and indirectly, affected farmers' decision to devote more resources to commercial chilli farming. Farmers' knowledge, as well as access to credit, technology adoption, marketplace, and traders, played significant roles in improving rural welfare. The government needs to reform marketing system of horticultural products and establish market infrastructures to accommodate oversupply during peak season. Easy and flexible credit should be available and accessible to farmers, with technology applicable to such agriculture.

Purpose: – Chilli plays an important role in the Indonesian economy through its multiplier effect. The recent rapid growth of chilli production in Indonesia can be explained by the development of agricultural and communication technologies and improved market infrastructure. The purpose of this paper is to analyse factors that affect farmers’ decisions to adopt chilli-based agribusinesses. Intensive chilli farming, as a part of agricultural commercialisation, is considered a technological package that is more profitable but also more input- and labour-intensive than the production of rice or other cereal crops.Design/methodology/approach: – This study used a logit model to estimate the farmers’ decision function. Personal characteristics, technical factors and business environment were hypothesised to influence farmers’ decisions to adopt intensive chilli farming. Data for this study were compiled from surveys conducted during 2009-2011. The surveys interviewed 300 farmer households in three main chilli producing regions of Java, Indonesia.Findings: – The results indicate that younger farmers, and also farmers with more experience, were more likely to adopt chilli farming. Availability of chilli production technology and the use of mobile phones prompted farmers to adopt chilli farming. Access to vegetable markets, credit, and market information were other factors driving farmers’ decisions to take up chilli production. Most farmers were motivated to grow chilli to increase their incomes. Ecological factors were also the reasons.Research limitations/implications: – The sample for this research is quite low. However, the sample was drawn from representative potential chilli production areas in Indonesia.Originality/value: – There is room to increase the number of chilli-based agribusinesses in Indonesia. Intensive chilli farming should be introduced to young farmers and those with experience in vegetable production. Farm credit, market information, and agronomic technologies should be made more available and accessible to farmers. Strengthening communication networks among farmers through the use of mobile phones is the best way to encourage farmers to adopt intensive chilli farming. Vegetable markets should be established in potential chilli producing regions.