Climate change affects agricultural production system and the livelihood
of the smallholder producers. To help farmers increase their adaptive
capacity, private sector may serve as an alternative to the government
through company-community partnership, which aims to directly acquire
production from the farmers while simultaneously increase their capacity
through knowledge exchange, market access and social capital. Despite
their pivotal roles, how the private sectors operate in promoting
climate change adaptation and mitigation strategies to their smallholder
clienteles are still understudied. This chapter examines the effects of
company-community partnership upon the climate change adaptation and
mitigation practices of the smallholders' coffee producers in Lampung,
Indonesia. Using propensity score matching (PSM) and inverse probability
weighting regression (IPWR), we found that farmers possessing motorized
vehicle, larger farm size, and more active networks inside their
locality, are more likely to join the partnership. Such partnership also
positively affects the adaptive capacity of smallholder farmers in two
ways. First, it improves their farm income thus reducing their income
vulnerabilities; and second, through increased propensity to adopt
resource-conserving and agroforestry techniques due to more opportunity
for knowledge exchange and a higher degree of social capital.