Challenges and Opportunities for Smallholder Farmers in Oil Palm Replanting: Evidence from Indonesia
2025
Hendrawan, Dienda Citasyari Putri | Mußhoff, Oliver Prof. Dr. | Mußhoff, Oliver Prof. Dr. | Wollni, Meike Prof. Dr.
The cultivation of oil palm supports the livelihoods of millions, including smallholder farmers. However, studies have shown that smallholder-managed plantations still generate much lower yields than large-scale company-managed plantations. Replanting overaged plantations could close the yield gap, therefore reducing the pressure for expansion and more deforestation. This dissertation consists of four essays aiming to understand the challenges faced by, and the opportunities available to, Indonesian oil palm smallholder farmers in replanting and transforming oil palm landscapes. The first essay provides a contextual understanding by exploring the livelihood resilience of the farmers. The second essay is a narrative review, where literature relevant to the replanting of oil palm and challenges faced by smallholders during replanting were collected and discussed. The third essay utilizes a discrete choice experiment to determine farmers' preferences in a replanting subsidy program. The fourth essay studies farmers' intention to adopt oil palm agroforestry as a more environmentally sustainable alternative to oil palm monoculture. All essays are based on observations in Jambi Province in Indonesia, an oil palm hotspot with a large share of smallholder-managed oil palm plantations.
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