IMPLEMENTATION OF CROP INTEGRATION WITH OIL PALM UNDER GOVERNMENT ASSISTANCE SCHEME BY OIL PALM INDEPENDENT SMALLHOLDERS (OPISH) IN MALAYSIA

Abstract

Crop integration with oil palm is one of the alternatives to encourage oil palm independent smallholders (ISH) to optimise their land use and increase farm productivity. The main purpose of crop integration with oil palm is to diversify source of income of the ISH through optimum utilisation of land and natural resources available in the oil palm area. Therefore, this study to identify the types of crops preferred by smallholders and their purpose towards practicing crop integration, also helps to investigate the smallholder’s intention to practice crop integration in the near future. Data was collected by face to face interview assisted by a prepared questionnaire, then followed by field observation. Based on the findings, 79.6% of respondents are willing to continue planting crops integrated with oil palm in their farms. Nevertheless, 56.3% respondents have insufficient capital, which is one of the main obstacles in implementing crop integration. This issue needs to be addressed to ensure that crop integration practices will continue to be alternative source of income for smallholders in the future. A total of 67.7% of respondents have chosen banana as the crop to be integrated with oil palm, followed by pineapple and papaya. They prefer to sell the yields, instead of using them for their own consumption. Overall, the income derived from this scheme was estimated to be ranging from RM200 to RM600 per hectare per month, depending on the types of crops. The participants were satisfied with the competency of the extension agents.