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Abstract
Availability of seed and farm production factors, i.e., land and farm labour, formed a single
factor that was found to be the most important factor influencing East-Javanese farmers’
decision to purchase seed. While such would suggest that the resulting impact of the factor may
influence the amount of seed purchased by farmers, seed is often unavailable when it is
required. The lack of availability of good quality seed at planting time often means that farmers
will be forced to plant whatever seed is available. Consequently, farmers continue the
traditional practice of retaining some proportion of their yield for use as seed. Irrespective,
farmers normally attempt to purchase seed when the seed they retained from the previous
harvest is no longer profitable. However, farmers are unwilling to purchase seed, unless they
believe that the seed will substantially generate profit. Since a large volume is needed, seed is
usually the costliest single input in potato production. In addition to being costly, seed potatoes
are highly variable in quality. Therefore, whenever they want to renew their seed, farmers are
actually taking a great risk. With additional risks arising from seasonal variation and ware
potato price fluctuation, farmers usually use some risk reduction strategies including
purchasing seed from nearby, reputable suppliers or from a recognised growing area.