Farming system based on coconut

The coconut crop in Indonesia have play an important role for the community nation wide and also belong to the second social commodity after rice due to the coconut product as the one of the main food for the society. This strategic position shown that total area of coconut is 3.74 million hectares and the largest estate crops planted in the country. About 3.59 million hectare (96 percent) coconut plantation belong to smallholder and faced many problems such as (1) too small farm size per family, (2) most of the coconut farm develop with monoculture pattern and subsistence characteristic, (3) low productivity, (4) coconut farmers income very low, (5) limited adoption of technology, (6) farm product still a primary product, and not competitive, and (7) farm gate price of the product very low and fluctuated. Based on the above condition, in the last two decades the research activities on coconut based farming system (CBFS) has been carried out very intensive in various types of agro ecosystems in the center of coconut plantation. The results of the research activities concluded that coconut monoculture system was not recommended to develop due to technical and not profitable. At the present, most of the coconut producer countries such as India, Philippines, Sri Langka and Indonesia promote CBFS for adoption with introduction of various species of promising intercrops. Many advantages of CBFS such as (1) CBFS enables efficient utilization of land and more productive, (2) increase farm productivity, (3) increase farm income and, (4) more efficient in utilization of farm input and minimizing risk of income for the farmers. Meanwhile, the result of the study on CBFS in Indonesia, showed that the increasing of land area and productivity of coconut farm, did not directly affect the improvement of coconut farm income. This appeared mainly due to (1) low productivity of the coconut farms and low farm gate price of the coconut product, (2) utilization of land not efficient, (3) diversification of the farm product not yet optimum. Based on the actual problem faced by the coconut farmer's, the improvement of smallholder coconut condition was conducted through horizontal and vertical diversification of the coconut farm. The adoption of integrated diversification affect to (1) better quality of life of the coconut farmer's family, (2) the coconut farmers involve as a part of agribusiness activity, (3) the farmers become self-confidence to develop their coconut farm, (4) physical resources of the coconut farm will be optimum utilized, (5) raw material for coconut processing industry will be fulfilled, (6) market institution and new industry will grow due to product diversification of the product of CBFS, (7) technology transfer will be accelerated and, (8) increase in the country