Govt launches new farming concept<\/p>\n
JAKARTA (JP): Minister of Agriculture M. Prakosa said on
\nTuesday the government had designed a new farming concept to help
\nboost efficiency in the agricultural sector.<\/p>\n
Prakosa said that under the corporate farming concept, small
\nfarm areas of between 0.3 of a hectare and 0.4 of a hectare would
\nbe consolidated into a corporate farming unit with a land size of
\nbetween 100 hectares and 150 hectares for efficiency.<\/p>\n
"This will help improve the welfare of the farmers," he told a
\nnews conference following a meeting with senior economic
\nministers.<\/p>\n
Prakosa said that several pilot projects in Central Java, West
\nJava, South Sulawesi and Sumatra were recently implemented.<\/p>\n
He said the new concept was expected to become a national
\nprogram at the upcoming 2001 planting season.<\/p>\n
He explained that under the new concept, each owner of small
\nfarmland would become "shareholders" in the corporate farming
\nunit.<\/p>\n
He said the corporate farming unit would be managed by a
\nprofessional farm manager appointed by the shareholders.<\/p>\n
Prakosa said the new corporate farming unit was expected to be
\nable to boost domestic rice production by about 20 percent once
\nit was fully implemented.<\/p>\n
He said a corporate farming unit with greater land size would
\nencourage the use of modern farming technology and a better
\nmarketing strategy.<\/p>\n
The new concept would not be limited to rice farming but was
\nopen to other commodities depending on the farming condition of
\neach area, he added.<\/p>\n
Prakosa said the government was planning to provide some Rp 1
\ntrillion in cash to develop the new farming concept.<\/p>\n
He said the government would introduce a new farming credit
\nscheme in June to support the new program.<\/p>\n
Prakosa acknowledged the new corporate farming unit would
\nresult in farm labor layoffs as a consequences of the increase in
\nefficiency.<\/p>\n
He said the government was also designing new policies to
\nabsorb the unemployment generated by the new corporate farming
\nconcept.<\/p>\n
Prakosa said the agricultural sector was the backbone of the
\ncountry's economy, contributing a third to the gross domestic
\nproduct.<\/p>\n
"Over the next five years, the agricultural sector will remain
\nthe prime mover of our economy," he said. (rei)<\/p>",
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