This article evaluates a hybrid seed contract between Indonesian smallholders and Pioneer Hybrid International. A transaction cost approach was used to analyse contract participation, total farm gross margins and labour and chemical use. The empirical results suggest: (a) the contract favours...

This article examines the emergence and benefits of contract farming in East Java, Bali, and Lombok, Indonesia. After a general review of contract farming in these regions, three contracts, for seed corn in East Java, seed rice in Bali, and broilers in Lombok are described and analyzed using key...