How will the new Felda plan reduce settler reliance on oil palm?

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The new Felda plan will reduce settler reliance on oil palm by shifting settlers toward cash crops under a long-term lease arrangement.
Felda director-general Datuk Othman Omar said the initiative is aimed at enabling settlers to generate more income while stopping them from relying heavily on oil palm, whose prices are described as unpredictable. The plan centres on settlers using a “long-term lease method” and getting involved in cash crops cultivation instead of depending mainly on oil palm.
Settlers will cultivate cash crops rather than depend on oil palm
Othman said the initiative encourages a “slightly different method from the past” through cash crops cultivation. This is positioned as an alternative to heavy reliance on oil palm, with oil palm prices cited as unpredictable.
Long-term leases are designed to make replanting easier for older settlers
The long-term lease method is expected to benefit settlers, especially older ones, because Felda would handle replanting without requiring settlers to take out loans for replanting. Othman also noted that more than 70 per cent of Felda settlers are aged 56 and above, and some face land-related problems as their children have migrated to the city for jobs.
Cash crops can generate higher revenue than oil palm
Othman said cash crops could yield revenues up to five to 10 times, and possibly more, compared with oil palm when cultivated using sophisticated technology. This higher earning potential is presented as part of how the plan helps reduce reliance on oil palm by offering settlers another income source.

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How will the new Felda plan reduce settler reliance on oil palm?

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