Peat Land Oil Palm Farmers’ Direct and Indirect Benefits from Good Agriculture Practices

Abstract

With economically unsustainable metroxylon sagu (sago palms) found in peat lands, small scale farmers are gradually converting their land to oil palm cultivation. Good agriculture practices (GAP) were inculcated to peat land farmers to ensure that the environmental ecosystem is conserved and oil palm productivity is enhanced, along with the farmer’s well-being. The present study examined the effect of GAP on farm performance and the perceived economic well-being of the peat land oil palm farmers. We interviewed randomly selected farmers with assistance from a locally trained native enumerator to complete the survey questionnaire. We conducted partial least square structural equation modeling (PLS-SEM) to incorporate direct and indirect benefits on farmers’ economic well-being to estimate the significance of GAP. The empirical results show that GAP have direct positive effects on farm performance. Such practices lead to significant positive impacts on the economic well-being of peat land oil palm farmers. This solid evidence makes it much easier for small-scale farmers to convert from conventional farming to environmentally friendly farming, and ensures safe and healthy oil palm cultivation.