Judul: Contract Farming Pattern In Salt Farming (Case Study Sumenep, Madura-East Java).
Abstrak: Salt is one of the strategically important commodity, because it is used as an industrial raw materials and foodstuffs needed by almost all people. Geographically, Indonesia has natural resources that support the needs of national salt. Indonesia is a maritime country with a vast ocean of 70 percent (5.8 million km2) of the total area. In addition, Indonesia is also a country with the second longest coastline in the world along 95 181 km and has the potential land that could be used as a salt pond area of 34 000 hectares (Balitbang KKP, 2012), is currently only 20 000 hetares are being used. The fundamental problem for most salt farmers in Sumenep is salt production and the quality is still low. Of course this affects the position of farmers in determining the quality and price of the salt it self (Suherman et al, 2011). This was caused by several factors there are limitations of technology used, methods applied, access to capital and market information is still very minimal. Position of farmers that only as a producer, it caused the midlle men dominate in the salt marketing. Relationship between farmers and middle men are not only in marketing, but also in the capital. Therefore, farmers rely on merchants collectors, this reliance made salt farmers do not have a good bargaining position. The impacts of inequality occurs no one benefit and the other one gets lose. One of way that can be done to increase the bargaining power of farmers is through building institutional contract farming (Vermulen and Cotula, 2011). This study aims to (1) To analyze the pattern of cooperation has been carried out by salt farmers with some related sides, (2) Formulate and recommend an appropriate model of contract farming institutions in order to increase the bargaining position dan the welfare of salt farmers. Sampling methods are done intentionally (purposive sampling). The analysis of the data used, is descriptive analysis that aims to describe how the characteristics of the doers, described the mechanism of the existing pattern of cooperation, and the costs incurred for the creation of contract farming pattern. For describe statistical describe of the average amount of salt production and data of average price of sales price of salt by using tabulation. Revenue analysis is done to measure the success of farm. Total farm income is the difference between the total revenue expenditure total. To know whether the models contract farming are built worth or not worth doing analysis Benefit-Cost Ratio (B/C). To measure efficiency levels used transaction cost analysis. Transaction costs are the costs incurred in conducting economic transactions. Generally, according to the North & Thomas in Anggraini (2005), the general components of transaction costs that will be taken into account in the salt business includes: (1) the cost to get information, such as information about the price, salt quality and variance of salt that based on quality, (2) contracting costs, how much it cost to legalize the contract, (3) the cost of implementation, cost incurred to do a contract/transaction. The result showed that the forms of cooperation
Keyword: Salt farming, Bargaining position, Contract farming