Risk Management of Rainfed Lowland Rice Farming Production in Jeneponto Regency, Indonesia
Keywords:
risk management, climate change, rice production, rice farming, rainfed rice fields
Abstract
Rainfed lowland rice production in semi-arid tropical environments is increasingly vulnerable to extreme climate variability, severe droughts, and shifting rainfall patterns. This study aims to analyze a multi-stage production risk management framework—including risk identification, assessment, control, transfer, mitigation, and adaptation—among rainfed lowland rice farmers in Binamu District, Jeneponto Regency, South Sulawesi, Indonesia. A quantitative survey was conducted among 150 rainfed lowland rice farmers selected through simple random sampling from a population of 4,059 farmers. Primary data were analyzed using descriptive statistics and risk framework modeling. The results indicate that climate change (96.67%) and prolonged drought (96.00%) were identified as the primary drivers of severe rice production losses, with 84.00% of farmers experiencing a reduction in rice production exceeding 50% during adverse climate events. Risk transfer through government agricultural insurance (AUTP) has collapsed, with 92.67% not adopted due to institutional budget suspensions post-2021. In response, farmers relied on autonomous production control, including adherence to agricultural extension guidelines (96.67%) and emergency cash reserves (58.00%). Key mitigation strategies centered on planting drought-tolerant and short-duration rice varieties (57.33%, Inpari 42) and adopting pest-resistant crop varieties (100.00%). When faced with severe climate shocks, 40.67% of farmers adapted by switching crops to hybrid maize.
References
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Pramanik, M., Paudel, B. R., & Soni, P. (2022). Climate-smart agriculture practices and smallholder resilience in South Asia. Heliyon, 8(5), e09412. https://doi.org/10.1016/j.heliyon.2022.e09412
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Aini, N., Suprehatin, S., & Harianto, H. (2014). Production risk management strategies of rice farming in West Java. Jurnal Manajemen & Agribisnis, 11(2), 108–117. https://doi.org/10.17358/jma.11.2.108
Ali, A., & Erenstein, O. (2017). Assessing farmer use of climate change adaptation practices and impacts on food security and poverty in Pakistan. Climate Risk Management, 16, 183–194. https://doi.org/10.1016/j.crm.2016.12.001
Asrulla, A., Subejo, S., & Witjaksono, R. (2023). Sampling techniques and quantitative survey approaches in Indonesian smallholder agricultural studies. Asian Journal of Agriculture and Rural Development, 13(1), 45–56. https://doi.org/10.55493/5005.v13i1.4721
Babel, M. S., Agarwal, A., Swain, C. T., & Shrestha, S. (2021). Evaluation of climate change adaptation options for rice production in rainfed agriculture. Agricultural Water Management, 245, 106606. https://doi.org/10.1016/j.agwat.2020.106606
BPS Jeneponto. (2025). Jeneponto Regency in Figures 2025. Badan Pusat Statistik Kabupaten Jeneponto.
Chandio, A. A., Jiang, Y., Amin, A., & Ahmad, F. (2020). Climate change and rice production in South Asia: Empirical evidence from long-run panel data. Environmental Science and Pollution Research, 27(18), 22564–22575. https://doi.org/10.1007/s11356-020-08693-0
Darmawi, H. (2016). Manajemen Risiko (2nd ed.). Bumi Aksara.
Di Falco, S., & Veronesi, M. (2018). Managing environmental risk in presence of climate change: The role of adaptation in the Nile Basin of Ethiopia. Environmental and Resource Economics, 69(1), 121–142. https://doi.org/10.1007/s10640-016-0068-1
Fahad, S., & Wang, J. (2018). Farmers' risk perception in response to climate change and adaptation strategies in the gelid region of Pakistan. Land Use Policy, 78, 454–465. https://doi.org/10.1016/j.landusepol.2018.07.018
Hafids, A., Yusrini, Y., & Sukmawati, S. (2021). Risk management strategies for agribusiness sustainability under climate uncertainty. International Journal of Agronomy and Agribusiness, 8(2), 89–98. https://doi.org/10.2139/ssrn.3842109
Hansen, J. W., Mason, S. J., Sun, L., & Tall, A. (2019). Review of seasonal climate forecasting for agriculture in sub-Saharan Africa. Experimental Agriculture, 55(1), 18–40. https://doi.org/10.1017/S0014479718000288
Imran, M. A., Ali, A., Ashfaq, M., Hassan, S., & Culas, R. (2019). Impact of climate smart agriculture (CSA) practices on cotton production and livelihood of farmers in Punjab, Pakistan. Sustainability, 11(8), 2201. https://doi.org/10.3390/su11082201
Kristiana, R., Suryana, A., & Friyatno, S. (2022). Smallholder risk management frameworks in Indonesian food crop production. Jurnal Agro Ekonomi, 40(1), 15–29. https://doi.org/10.21082/jae.v40n1.2022.15-29
Lawolo, S., & Waruwu, A. (2022). Identification of bottom-up production risks in rainfed farming systems. Journal of Tropical Agricultural Economics, 6(1), 33–42. https://doi.org/10.32734/jtae.v6i1.7820
Li, S., Wang, J., & Jiao, X. (2023). Index-based weather insurance and its adoption barriers among Asian smallholders: A systematic review. Climate Risk Management, 40, 100502. https://doi.org/10.1016/j.crm.2023.100502
Mardiyati, S & Natsir, M. (2026). Risk, Focus of Loss and Minimum Income in Rainfed Lowland Rice Farming. International Journal of Economics, Business and Innovation Research, 5(01), 973-984. https://doi.org/10.63922/ijebir.v5i01.2879
Masud, M. M., Azam, M. N., Mohiuddin, M., Banna, H., & Akhtar, R. (2017). Adaptation barriers and strategies in Malaysia's agricultural sector. Land Use Policy, 60, 280–287. https://doi.org/10.1016/j.landusepol.2016.10.039
Mubarokah, U., Darwanto, D. H., & Waluyati, L. R. (2017). Risk management in rainfed lowland rice farming in Central Java. Agriefor, 16(2), 215–226. https://doi.org/10.31293/agrifor.v16i2.2981
Mukasa, A. N. (2018). Technology adoption and risk management in African smallholder agriculture. Food Policy, 81, 123–137. https://doi.org/10.1016/j.foodpol.2018.10.009
Nguyen-Van, P., Stenger, A., & Tiet, T. (2021). Social incentives and water conservation in agriculture: Experimental evidence from rice farmers. Environmental and Resource Economics, 79(3), 513–539. https://doi.org/10.1007/s10640-021-00572-8
Pasaribu, S. M. (2020). Indonesian agricultural insurance scheme: Implementation progress and challenge. Indonesian Journal of Agricultural Sciences, 21(1), 12–23. https://doi.org/10.21082/ijas.v21n1.2020.p12-23
Pramanik, M., Paudel, B. R., & Soni, P. (2022). Climate-smart agriculture practices and smallholder resilience in South Asia. Heliyon, 8(5), e09412. https://doi.org/10.1016/j.heliyon.2022.e09412
Quiggin, J. (2019). Risk and uncertainty in agricultural economics: The state of the art. Australian Journal of Agricultural and Resource Economics, 63(4), 621–639. https://doi.org/10.1111/1467-8489.12328
Reardon, T., Echeverria, R., & Berdegué, J. (2019). Rapid transformation of food systems in developing regions: Implications for agribusiness risk management. Agricultural Systems, 172, 42–51. https://doi.org/10.1016/j.agsy.2019.01.008
Saqib, S. E., Kuwornu, J. K., Panezia, S., & Ali, U. (2018). Factors determining subsistence farmers' access to agricultural credit in flood-prone areas. Kasetsart Journal of Social Sciences, 39(2), 262–268. https://doi.org/10.1016/j.kjss.2017.06.001
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach (7th ed.). John Wiley & Sons.
Simelton, E., Quinn, C. H., Benda, N., & Dougill, A. J. (2021). Farmer perceptions of drought severity and seasonal weather forecasting in rainfed rice systems. Regional Environmental Change, 21(2), 48. https://doi.org/10.1007/s10113-021-01768-4
Siregar, H., & Suryana, A. (2021). Re-evaluating the Paddy Farming Insurance (AUTP) in Indonesia: Institutional constraints and policy remedies. Journal of Development Economics and Agriculture, 13(3), 101–112. https://doi.org/10.5897/JDAE2021.1256
Suroso, A. I., Tjakraatmadja, J. H., & Novani, S. (2020). Risk management models for smallholder agribusiness supply chains in Indonesia. Supply Chain Forum: An International Journal, 21(3), 180–192. https://doi.org/10.1080/16258312.2020.1774351
Susilowati, S. H., & Suhaeti, R. N. (2021). Farmers' adaptation strategies to climate change in rainfed paddy fields of South Sulawesi. Jurnal Penelitian Pertanian Tanaman Pangan, 5(2), 115–128. https://doi.org/10.21082/jpptp.v5n2.2021.p115-128
Tadesse, M., Bahiigwa, G., & Tadesse, G. (2021). Micro-level climate adaptation strategies and crop productivity in rainfed agriculture. Food Security, 13(4), 987–002. https://doi.org/10.1007/s12571-021-01168-1
van der Vorst, J. G., da Silva, A. L., & Trienekens, J. H. (2019). Agribusiness supply chain risk management: Principles and applications. International Food and Agribusiness Management Review, 22(4), 511–528. https://doi.org/10.22434/IFAMR2018.0094
Wadu, J., Harianto, H., & Suryana, A. (2019). Production risk management strategies in eastern Indonesian rainfed agriculture. Jurnal Agribisnis Indonesia, 7(2), 135–148. https://doi.org/10.29244/jai.2019.7.2.135-148
Ward, P. S., Bell, A. R., Droppelmann, K., & Benton, T. G. (2020). Early-warning climate information and farming decisions in drought-prone environments. World Development, 130, 104932. https://doi.org/10.1016/j.worlddev.2020.104932
Winarto, Y. T., Stigter, K., & Anantasari, E. (2022). Climate field schools for smallholders: Enhancing adaptive capacity in rainfed rice ecosystems. Climate and Development, 14(6), 541–553. https://doi.org/10.1080/17565529.2021.1949572
World Bank. (2023). Climate-smart agriculture in Indonesia: Investment prioritization and risk mitigation. World Bank Group.
Yamane, T. (1967). Statistics: An introductory analysis (2nd ed.). Harper and Row.
Yazar, A., & Ali, A. (2021). Water harvesting techniques for rainfed agriculture in dry areas. Agricultural Water Management, 256, 107103. https://doi.org/10.1016/j.agwat.2021.107103
Zizinga, A., Kangalawe, R. Y., Ainslie, A., & Tenywa, M. M. (2022). Analysis of smallholder farmers' perceptions and adaptation to climate variability in rainfed agricultural systems. Climate Services, 26, 100295. https://doi.org/10.1016/j.cliser.2022.100295
Published
2026-07-26
How to Cite
Noer Ibrah Ibrahim, Ratnawati Tahir, Irma Sribianti, Akhmad, & Sri Mardiyati. (2026). Risk Management of Rainfed Lowland Rice Farming Production in Jeneponto Regency, Indonesia. International Journal of Economics, Business and Innovation Research, 5(04), 5779-5794. https://doi.org/10.63922/ijebir.v5i04.5588
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