Abstract

Management of peatlands with an integrated system of maize and cattle is an alternative to circular agriculture in peatland areas that can increase economic growth in rural areas which is environmentally friendly and sustainable (green economy). This study aims to obtain a circular agriculture model with zero waste management based on the integration of maize and cattle which is environmentally friendly and sustainable in peatland areas, in addition to increasing the added value and farmers' income. This circular agriculture model utilizes site-specific technological innovations and local resources that can restore sustainability in the peatland. The analysis methods used were before-and-after study analysis, baseline surveys, field trials using an experimental design and analysis of variance, financial analysis, and institutional engineering. To achieve this goal, two sub-models were implemented, namely a rural agro-industrial approach based on local agricultural resources by managing appropriate site-specific technological innovations (on-farm) and a local human resource approach through rural institutional engineering, that is farmers’ institutional initiation, development, empowerment, and institutional strengthening of agribusiness (off-farm). The results showed that the circular rural agricultural management model on integrating maize and cattle as a benchmark could increase farmers' income in the peatland areas by more than 208 % from IDR 4,760,000 to IDR 14,600,000 per month. The management of peatlands through circular agriculture can improve quality products and add value to the utilization of waste such as animal feed products (silage), organic fertilizers, and biourine. This rural circular agriculture model is carried out by social engineering, initiation, and strengthening of rural agribusiness institutions that are environmentally friendly so that they can be sustainable.

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