The rice cultivation business is dominated by small farmers with average land ownership of less than one hectare. Consequently, all efforts that have been made were unable to improve the farmer’s welfare. The small land ownership is a problem in applying mechanization, technology adoption, and management efficiency. The consolidation of the agricultural system in the form of an agricultural, institutional model is essential to be developed to achieve farming efficiency, profit, and, in turn, and farmer’s welfare. An agrosocio-cultural and institutional model was designed to overcome problems faced by farmers.
The study was conducted in Banjarnegara and Purbalingga Regencies, Central Java. The study applied FGD and survey methods. The results showed that most farmers’ age was 60 years, and their educational attainment was a primary school, owned less than 0.7 hectares of land size, low technology adoption rates, and yield of fewer than four tons/ha. The condition causes the farmers to get low income, with an amount of fewer than three million rupiahs/month. Sociocultural conditions, land potentials, institutions, access to capital, and product marketing were the basis for developing an institutional model of rice farming. An institutional model concept was offered in the form of management consolidation. Several farmers gathered in a joint venture called the Rice Estate Community (REC), with approximately 300 hectares. Management consolidation supported mechanization application, science and technology transfer, easier access for market access and capital for rice farming. The REC was a model delivering farming efficiency and prosperity to farmers.