Formulating Policy Alternatives for Enhancing Sugarcane Production and Farmer Incomes: A Case Study in East Java
DOI:
https://doi.org/10.11594/nstp.2025.4910Keywords:
Economic behavior, policy simulations, sugarcane farmingAbstract
This study examines the economic behavior of sugarcane farming households in East Java, focusing on their decision-making regarding ratoon removal, a crucial practice for maintaining optimal yields. Using an economic model, the research evaluates the effectiveness of policies aimed at increasing sugarcane production and improving farmers' incomes, including replanting intensity, seed price subsidies, and non-food consumption subsidies. Policy simulations reveal that the most effective strategy for boosting production is a combination of a 25% increase in replanting intensity and a 15% subsidy for non-food consumption. Similarly, for enhancing incomes, the same policy proves most effective, followed by a 25% fertilizer price increase paired with a 20% seed price subsidy. These findings underscore the importance of integrated policy measures that address both input costs and household expenses to maximize productivity and income, offering valuable insights for policymakers supporting smallholder sugarcane farmers and sustainable agricultural practices in East Java.
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