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The purpose of this study is to determine the transaction costs that arise in contracts made by sugar cane farmers. The research method used to view transaction costs is a qualitative approach with unstructured interviews, observation, and documentation as data collection techniques. Transaction costs are a significant obstacle because farmers ultimately sacrifice their income margins from sugarcane harvest. The results of this study are the differences between contract farmers (participating in cooperatives) and non-contracted (with loggers) based on an institutional approach in terms of transaction costs. Keywords— transaction cost, contract, agriculture

Transaction Cost: Institutional Efficiency of Sugar Cane Contract in Malang Regency