Pacific Science Review B: Humanities and Social Sciences xxx (2016) 1e5 HOSTED BY Contents lists available at ScienceDirect Pacific Science Review B: Humanities and Social Sciences journal homepage: www.journals.elsevier.com/pacific-science- review-b-humanities-and-social-sciences/ Assessing paddy farming sustainability in the Northern Terengganu Integrated Agricultural Development Area (IADA KETARA): A structural equation modelling approach * Muhammad Yasar a, Chamhuri Siwar b, R.B. Radin Firdaus c, a Department of Agricultural Engineering, Universitas Syiah Kuala, 23111 Banda Aceh, Indonesia b Institute for Environment and Development (LESTARI), Universiti Kebangsaan Malaysia, 43000 Bangi, Malaysia c School of Social Sciences, Universiti Sains Malaysia, 11800 Pulau Pinang, Malaysia article info abstract Article history: Production instability and uneconomic sizes of planted areas are amongst the main issues and concerns Received 15 May 2016 for sustainability in Malaysian paddy farming. However, a sustainable development approach in the Accepted 23 May 2016 agricultural sector is not solely determined by such factors. Therefore, this study aims to analyse the level Available online xxx of sustainability in paddy farming based on five aspects that cover economic, social, ecology, institutional and technology indicators. The respondents consisted of 350 farmers who are members of the Water Keywords: Consumer Group of the Northern Terengganu Integrated Agricultural Development Area (IADA KETARA). Sustainability Based on questionnaires from structured interviews, the data were analysed using structural equation Paddy Structural equation modelling modelling. The results indicate that technological advancement is the primary positive factor that Malaysia determined the level of sustainability in IADA KETARA. The economy, society and institutions were also positive factors. Thus, it can be concluded that technological advancement is the most crucial element for achieving sustainability in the Malaysian paddy sector. Nevertheless, the adverse ecological impacts that could result from the adoption of any technological advancements must not be underestimated by the stakeholders. Copyright © 2016, Far Eastern Federal University, Kangnam University, Dalian University of Technology, Kokushikan University. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). 1. Introduction circumstances. The technological advancement has polluted groundwater and surface water, eroded soil and increased the us- Data from the World Bank shows that Malaysian carbon dioxide age of pesticide, causing a deleterious impact on the environment. (CO2) per capita increased from 3.1 tonnes in 1990 to 7.9 tonnes in A study by the World Bank claimed that the Malaysian paddy the year 2011. With the change of the Malaysian economic structure industry is not only unsustainable but also unprofitable (Siwar, moving towards rapid development in the manufacturing, trade 1995). Therefore, Malaysia is continuously committed to prac- and services sectors, particularly since the 1980s, these sectors are ticing a sustainable approach in agriculture to find a balance be- typically criticized. However, prior to that, the successes of the tween the needs of development and the environment (Tawang, Green Revolution in the early 1970s in revitalizing the agricultural 1998). The country's commitment has also been shown by the sector were also not implemented in an environmentally friendly signing of multiple agreements related to sustainable development, manner. The Green Revolution in the Malaysian paddy sector was such as the Langkawi Declaration and Convention on Biological intensively supported by fossil energy for fertilizers, pesticides, Diversity. The introduction of the Integrated Agricultural Project irrigation and other technologies that were suited to the special (IADA) since the Third Malaysian Plan (1976e1980) also marked the government's aim to deploy a sustainable development approach in the agricultural sector, particularly the paddy sector. The project has focused on the designation of eight main granary areas * Corresponding author. Tel.: þ60 4 653 2662. involving a host of centralized and coordinated governmental E-mail address: [email protected] (R.B.R. Firdaus). Peer review under responsibility of Far Eastern Federal University, Kangnam agencies. The authorities are dedicated and mandated to assist in University, Dalian University of Technology, Kokushikan University. providing capital, machinery, technology, marketing, and http://dx.doi.org/10.1016/j.psrb.2016.05.001 2405-8831/Copyright © 2016, Far Eastern Federal University, Kangnam University, Dalian University of Technology, Kokushikan University. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Please cite this article in press as: Yasar, M., et al., Assessing paddy farming sustainability in the Northern Terengganu Integrated Agricultural Development Area (IADA KETARA): A structural equation modelling approach, Pacific Science Review B: Humanities and Social Sciences (2016), http://dx.doi.org/10.1016/j.psrb.2016.05.001 2 M. Yasar et al. / Pacific Science Review B: Humanities and Social Sciences xxx (2016) 1e5 management assistance as well as infrastructure for sustainable Philippines Los Banos~ identified five pillars that are important to and modern agriculture practices. However, the execution and developing a sustainable agriculture framework (Zamora, 1999). It adoption of sustainable agricultural development still need to be was defined as a “system of production that makes agriculture improved. Based on an international benchmarking of a national economically feasible, ecologically sound, socially just and humane environmental stewardship called the 2014 Environmental Per- (equitable), culturally appropriate and grounded on holistic (sys- formance Index, the ecosystem vitality of the Malaysian agricul- tems and integrative) science” (Zamora, 1995). Nurmalina (2008) tural sector placed 124th among 178 countries surveyed (Firdaus, adopted five dimensions that comprise the elements of ecology, 2015). As such, the sustainability of the local rice production is an economy, social, technology and institutions to measure the sus- issue in finding a balance between development and nature. tainability index and status of the rice availability system in Most of the main issues of sustainability are usually highlighted Indonesia. in production instability and size of the paddy farms as well as their Therefore, the term “sustainability” and its approaches remains profitability. Although the ultimate aim of the Integrated Agricul- varied, particularly in agriculture. This reflects the diversity of is- tural Development Area (IADA) programme is in line with the sues and challenges faced by unique communities in different concept of sustainable development, these projects lack a focus on countries. For instance, Thailand's holistic sustainable development environmental and ecological conservation (Mustapha, 1995). approach is defined based on six dimensions. Apart from economic, Among the paddy areas that have become the IADA is part of the social and environmental aspects, other important aspects include state project located in Northern Terengganu (IADA KETARA), politics, knowledge and technology as well as mental and spiritual which is the largest paddy production area, accounting for 67 balance (Dalal-Clayton and Bass, 2002). In this study, five di- percent for the state of Terengganu (Department of Agriculture, mensions, which include the aspects of ecology, economy, society, 2014). The main objective of this study is to assess the success of technology and institutions, were measured to analyse the sus- this project in adopting sustainable development practices. This tainability of paddy farming in the Northern Terengganu Integrated assessment involves five factors, including the economy, society, Agricultural Development Area (KETARA). The analysis was per- ecology, technology and institutions based on a structural equation formed based on structural equation modelling. modelling approach. 3. Methods and materials 2. Literature review This research was undertaken in the Northern Terengganu In- The knowledge, technique, models and theories of sustainable tegrated Agricultural Development Area (IADA KETARA). The IADA agriculture remain elusive and continue to be explored, discussed KETARA is one of the eight granary areas that was designated under and debated via research in multi-disciplinary areas. According to the National Agricultural Policy for double cropping paddies Salikin (2003), a development system is considered to be sustain- through the introduction of high yield varieties, intensive irrigation able if it is ecologically sound, economically valuable and socially facilities and adoption of modern farming practices. The area covers just. This view is similar to the ‘triple P’ concept popularized by the Besut and Setiu Districts; the Besut District has an area of Munasinahe (1993). The three P's are economic development 122,831 ha, and the Setiu District has an area of 139,905 ha. The (profit), social development (people) and ecological/environmental overall size of this area is 258,736 ha, incorporating 58,000 ha for protection (planet) and these dimensions are seen as influencing agriculture and 12,000 ha for paddies.