Economic analysis of improved smallholder rubber agroforestry systems in west Kalimantan, Indonesia: Implications for rubber development
Farm budget analysis is a tool to understand economic performance of agriculture practice - to assess impact of technology intervention and price and policy changes. This helps better understand strengths and weaknesses of various farm operations. As a type of farm budget analysis, the farming system modeling software "Olympe" developed by a consortium of INRA/CIRAD/IAMM, is an efficient software to analyze and model farming systems performance. Olympe enables a comprehensive overview of farmer situation and links to technical innovations and practices. A range of analyses can be carried out such as the economic impact of technical choice, effect of climatic or economic uncertainty as well as the environmental impact of land use options.
The Olympe application was used to analyze the impact of new Rubber Agroforestry Systems (RAS technology) in Sanggau, West Kalimantan, Indonesia. RAS technologies are developed for adoption by smallholder farmers with limited resources. The results show that while the RAS technology requires more capital input, both return to labor and return to land are higher compared to farmers' traditional system. The return to labor of RAS technologies can be higher than that of intensive monoculture rubber. The economic and environmental advantages of diversified RAS technologies over monoculture rubber and oil palm are evident.