Chili Farmer Institutional Pattern With a New Institutional Economic Approach

Abstract

The partnership program on chili planting was launched by the Directorate General of Horticulture to support the supply and distribution of chilies. The partnered farmers are young farmers and have little experience in  chili cultivation and have capital and market difficulties. The partnership contract document that is carried out only contains the partners' obligations, causing errors in their implementation. The aim of this research is to analyze the comparison of cost structure, comparison of revenue, income and R/C, identification of partnerships through institutional approaches and partnership strategies. The research was conducted in AprilJune 2023 in Pacet District, Cianjur Regency. The number of respondents was 26 people consisting of 13 partner farmers and non-partner farmers each. The data analysis method used is descriptive analysis with an institutional approach. The results show that the fixed costs of partner smallholder farming are higher due to the application of better technology. Comparison of the acceptance of partner farmers shows that the results are not much different from non-partner farmers who have had longer experience. The partnership that is run by chili has a nucleus-plasma pattern with the company as the nucleus and the chili farmers as the plasma. Based on institutional analysis, the investment costs of partner smallholders can be reduced due to the support of social access and information. Contract enforcement experienced problems due to partner farmers who did not fulfill the terms of the contract, price differences, delayed and fluctuating payments due to market influences. Partnership strategy through agreement improvement, significant and targeted monitoring, and capital assistance.