THE EFFECT OF PARTNERSHIPS BETWEEN CORN FARMERS AND COMPANIES ON THE SUSTAINABILITY OF AGRICULTURAL BUSINESSES (Case Study of Corn Farmers in Mojowarno, Jombang)

Abstract

This study examines the impact of corporate-farmer partnerships on corn farming
sustainability in Mojowarno, Jombang. Using qualitative methods with case study
approach, data were collected through in-depth interviews with 4 partner farmers and 1 PT
BISI International representative, complemented by field observations and document
analysis of 15 partnership contracts from 2020-2023. Findings reveal that partnerships
enhance farming sustainability through: (1) 60% average yield increase (from 5 to 8
tons/hectare), (2) guaranteed minimum price (Rp3,500/kg) reducing market risks, and (3)
technology transfer including hybrid seeds and precision farming techniques. The
partnership model provides production inputs on credit, technical assistance through field
schools, and harvest purchase agreements. However, challenges persist, including unequal
bargaining power (75% contracts favor companies), late payments (reported by 40%
farmers), and over-reliance on single buyers. The study identifies three sustainability
outcomes: economic (30% income rise), social (strengthened farmer groups), and
environmental (25% pesticide reduction through integrated pest management training).
Policy recommendations emphasize contract farming regulations, dispute resolution
mechanisms, and farmer capacity building programs. These findings contribute to
sustainable agribusiness literature by demonstrating how partnerships can simultaneously
address productivity and sustainability challenges in smallholder farming systems, while
highlighting structural imbalances requiring institutional intervention.