Does Islamic Agricultural Fintech impact the income and poverty status of smallholder farmers during the COVID-19 pandemic? A review of empirical studies

Abstract

This study examines the impact of Islamic Agriculture Fintech on farmers' income and poverty status. Random sampling and simple random sampling methods are used to collect data from 252 smallholder farmers. Result of the study indicates that Islamic fintech can positively and significantly impact if poverty status is measured using the national poverty standard. The impact is relatively minimal if poverty status is measured using international poverty standards such as extreme and moderate poverty standards, or generates US $ 1 and US $ 2 per capita per day as adopted by the World Bank and other international organizations. This study also found that smallholder farmers' mudharabah muqayyadah financing model can change their economic conditions better than those who receive
murabahah financing. This study adds new evidence about the financial impact of Islamic Fintech on household socio economic development. Investments in sustainable and resilient food systems are needed to improve food security during the COVID-19 pandemic. Therefore, the government needs to innovate in digitizing the financial sector and facilitating access to smallholder capital for a better life and availability of nutritious food for everyone.