Land Optimization Through Agriculture Partnership

Land Optimization through Agriculture Partnership is become popular amongst Indonesian entrepreneurs. One of their businesses is agriculture which they partner with the land owner to optimize the land. Partnership in utilizing agriculture land is a good opportunity in a country like Indonesia with massive agriculture land.  Where farmers can use agriculture technology without spending money and off-taking company can get raw material assurance.

What Kind of Partnership It Is

Most farmers in Indonesia work with traditional tools they use their experience to cultivate agricultural land.  In another hand, companies need raw material assurance to plan their production and to make sure that they are able to supply their customers’ demand.  To help these both parties, long term partnership is an answer in which off-taking companies can help farmers to provide technology needed and educate them to optimize the land cultivation.  In return, companies can have raw material assurance since the farmers sell their crop immediately after harvest to the off-taking companies.

How Agriculture Partnership Works

The partnership starts when off-taking companies and farmers sign an agreement.  In the contract, selling price will be regulated so when the market price going down farmers can still get profit from their crop. Farmers are not allowed to sell their crop to another company and they have to give a routine report to the off-taking company.  This report is used to plan the production capacity.  The off-taking companies usually help farmers to maintain crop quality.  Because the crop quality determines its price. When farmers can produce higher quality they can earn more income. Quality standard is usually written in partnership agreement including the price.

Citronella farmers usually have partnership agreement with off-taking company.  This is a photo of citronella plantation that is being maintained through agriculture agreement.

Photo: Citronella Plantation

Kebunhebat as agriculture start-up encourages farmers to have agriculture partnership.  We partner with farmers to produce higher crop quality.  We approach farmers with local wisdom and explain them what agriculture benefits for them are.  Today, we are partnering with some famers in West Java Province to produce high crop quality which make Kebunhebat can sell the product with affordable price to our customers.