Patchouli as an Emerging Agribusiness Opportunity in Southeast Sulawesi: An Analysis of Farmers’ Adoption Decisions

Abstract

This study analyzes the socioeconomic factors influencing farmers’ decisions to cultivate patchouli (Pogostemon cablin) in a rural Indonesian context. Many maize farmers in Lameao Village in Muna District have recently switched to patchouli cultivation to capitalize on its substantially higher income returns. Using a survey of 67 farmers (49 patchouli adopters and 18 non-adopters) and a binary logistic regression model, we examine five hypothesized factors: formal education level, farming experience, landholding size, number of family dependents, and farm income. The results show that three factors have a significant impact on the decision to adopt patchouli farming, namely education level, farming experience, and household farm income. In contrast, landholding size and family dependent count show no significant effects on adoption. We discuss how the findings reflect farmers’ socio-economic motivations and constraints, and we situate the results in the broader literature on agricultural innovation adoption. The paper concludes with implications for agribusiness development and rural policy, such as improving farmer education and extension, tailoring outreach to experienced growers, and facilitating market and processing support for patchouli, all while ensuring sustainable practices.