Smallholder Farmers' Strategies in Facing Climate Change and Commodity Price Uncertainty

Climate change and fluctuations in commodity prices create multidimensional pressures on the economic resilience of smallholders, who are the main actors in the national agricultural system. This study aims to analyze the adaptation strategies implemented by smallholders in response to climate uncertainty and commodity price volatility, as well as identify the factors that influence the selection of such strategies. A quantitative approach was used by a survey method of 150 smallholders in three major agricultural production centers in Indonesia. Data were collected through a structured questionnaire and analyzed using multinomial logistic regression to test the relationship between farmer characteristics, perception of climate risk, price uncertainty, and adaptation strategy choices. The results of the study show that diversification of farming, the use of local inputs, and changes in planting patterns are the dominant strategies adopted by smallholders. Factors such as education level, land area, access to market information, and experience of climate disasters have a significant impact on the chosen strategy. These findings indicate that farmers' adaptive capacity is greatly influenced by a combination of internal and external factors that are economic and institutional. This research contributes to the agricultural economics literature by offering an empirical understanding of the economic decision-making dynamics of smallholder farmers in the face of external risks, as well as providing a basis for the formulation of agricultural policies that are more responsive to climate and market uncertainties.