Indonesia continues to face a familiar challenge in agriculture: how to increase food production while agricultural land becomes increasingly limited. For maize, one of Indonesia’s most strategic food commodities, the challenge is particularly pressing. Demand for maize continues to rise due to the growing livestock and food processing industries, yet domestic production often struggles to keep pace.<\/p>\n\n\n\n
In this situation, improving productivity is no longer an option\u2014it is a necessity.<\/p>\n\n\n\n
One institutional approach that has long been promoted by the government is the development of farmer groups (kelompok tani<\/em>). These organizations serve as platforms where farmers can access agricultural extension services, obtain information about new technologies, receive government support, and share experiences with fellow farmers. However, an important question remains: are farmer groups still relevant today?<\/p>\n\n\n\n Our recent study, published in Cogent Economics & Finance<\/em>, suggests that the answer is yes.<\/p>\n\n\n\n Using nationally representative data from more than 28,000 maize farming households across Indonesia, we examined whether participation in farmer groups influences farm productivity. To ensure a fair comparison, we employed a statistical method called Propensity Score Matching, which compares farmers with similar characteristics except for their participation status in farmer groups.<\/p>\n\n\n\n The results show that maize farmers who participate in farmer groups achieve higher productivity than those who do not. On average, membership increases maize productivity by around 0.095 to 0.195 tons per hectare, equivalent to an improvement of approximately 2.2\u20134.4 percent.<\/p>\n\n\n\n At first glance, this increase may appear modest. Yet when applied across millions of maize farmers nationwide, even a small productivity improvement can translate into substantial additional production. In a country that still experiences a gap between maize supply and demand, these gains are far from trivial.<\/p>\n\n\n\n Why do farmer groups matter?<\/p>\n\n\n\n Farmer groups provide opportunities for learning, collective action, and access to resources. Through regular meetings and interactions, farmers can exchange knowledge, learn about improved farming practices, and gain better access to production inputs. Collective organization also reduces transaction costs and strengthens farmers’ bargaining positions.<\/p>\n\n\n\n Nevertheless, our findings also carry an important warning. While farmer groups contribute positively to productivity, their impact is not transformative. Joining a farmer group alone will not automatically solve Indonesia’s agricultural productivity challenges.<\/p>\n\n\n\n This means that agricultural policy should move beyond merely increasing the number of farmer groups. The more important task is improving their effectiveness.<\/p>\n\n\n\n Many farmer groups still function primarily as administrative channels for distributing government programs. Their role as learning centers, innovation hubs, and economic organizations often remains underdeveloped. Strengthening leadership, transparency, member participation, and organizational management is therefore essential.<\/p>\n\n\n\n Agricultural extension services also play a crucial role. Farmer groups can only become effective if they are supported by competent extension agents who can facilitate technology transfer and problem-solving at the farm level. Under Indonesia’s decentralized governance system, the quality of support varies considerably across regions, creating unequal outcomes for farmers.<\/p>\n\n\n\n Another challenge is participation itself. Although farmer-group participation has increased over time, a substantial proportion of Indonesian farmers remain outside these organizations. In several provinces, particularly in eastern Indonesia, participation rates remain far below the national average. Expanding access while simultaneously improving organizational quality should therefore become a policy priority.<\/p>\n\n\n\n Food security is not determined solely by seeds, fertilizer, or irrigation infrastructure. Institutions also matter. Farmer groups represent one of the most important rural institutions connecting farmers with knowledge, markets, and government support.<\/p>\n\n\n\n The lesson from our study is clear: farmer groups remain relevant, but their future contribution depends on how well they are managed and supported. Strengthening farmer groups may not be the only solution to Indonesia’s agricultural challenges, but it remains an important part of the answer.<\/p>\n\n\n\n As Indonesia seeks to improve food security and reduce dependence on imports, investing in stronger and more effective farmer organizations deserves renewed attention.<\/p>\n\n\n\n Authors: Wahyu Wisnu Wardana & Tri Haryanto<\/p>\n\n\n\n