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 increasing 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.