CONDUCTING AGRIBUSINESS IN ACCORDANCE WITH ISLAM

At its core, agribusiness is about the strategy of generating profit by managing every aspect of an agricultural enterprise—ranging from cultivation, post-harvest handling, and processing to marketing. This is undeniably a noble pursuit. The subjects of agribusiness can be plants, animals, or other living organisms.

In essence, agribusiness means transforming farming into a business venture; thus, planting and harvesting must be followed by selling. This is precisely where the challenge arises. When farmers must engage with the market, the act of farming—once an idyllic, romantic "way of life"—shifts into a business activity driven by financial calculations. There is an interesting book on this subject titled “Agribisnis Syariah: Manajemen Agribisnis dalam Perspektif Syariah Islam” (Sharia Agribusiness: Agribusiness Management from an Islamic Sharia Perspective) by Said and Pratiwi (2005), although I have not yet had the chance to read it. The Sharia agribusiness system and management represent an effort to establish values ​​of truth in business, grounded in the awareness that the universe is a gift requiring responsible stewardship. This endeavor harmonizes economic aspirations with spiritual ones—earning money, creating jobs, and securing a livelihood, all while accumulating righteous deeds.

Agribusiness comprises several subsystems: cultivation; the procurement and distribution of production inputs; post-harvest processing; trading and marketing; and supporting institutions. Does Sharia play a role here? Yes. Sharia applies whenever an activity involves interaction—whether between humans and nature, or, even more so, between human beings. These five subsystems clearly involve human-to-human interactions (*muamalah*). Consequently, these relationships must be guided by Islamic principles. If farming itself must be Sharia-compliant, then agribusiness—by extension—must also adhere to Sharia.

So, what exactly is Sharia agribusiness? In my view, it entails building a broad-based agricultural system through the application of Islamic teachings. The goal is, of course, to foster progress and justice. Ultimately, all Islamic rules are rooted in justice. Thus, Sharia agribusiness means conducting agricultural business with a mindset of sincerity and piety, acknowledging the greatness and majesty of Allah SWT. It involves working for the sake of Allah, seeking profit for the sake of Allah, and distributing the results in accordance with Allah’s guidance.

Agribusiness is, in reality, a vast field. Beyond the actual farming—planting, weeding, fertilizing, harvesting, and selling—we often overlook the fact that agribusiness also... ...encompasses indirect service-oriented activities. Thus, agribusiness also includes agricultural banking, agricultural insurance, extension services, transportation, and warehousing.

We are already familiar with the concept of sustainable agribusiness. The core idea is to maintain environmental sustainability and avoid causing damage to the earth. This aligns perfectly with Islamic teachings. Surah Al-A’raf, verse 56, states: "And do not cause corruption upon the earth after its reformation. And invoke Him in fear [of rejection] and aspiration [of acceptance]. Indeed, the mercy of Allah is near to the doers of good."

Therefore, engaging in agribusiness is also a form of da'wah (advocacy for the faith) and constitutes a path of ghairu mahdah worship (general acts of worship beyond the specific rituals).

Farming is undoubtedly a most noble profession. It involves planting and nurturing a tiny seed until it grows, sprouts leaves and flowers, and eventually bears fruit. While it is certainly Allah who causes it to grow, the work itself is truly good and noble. Thus, one must ensure that this work remains within the framework of worship; the agribusiness activities themselves should be carried out with the spirit and essence of worship.

Running an agribusiness can serve as a vehicle for da'wah (religious outreach) to strengthen human faith and act as a source of spiritual reward for those involved. By applying Islamic principles to agribusiness, we prevent the sector from being corrupted by greed and exploitation. Therefore, let us—as champions of the economy and life—engage in agribusiness now; specifically, agribusiness grounded in Islamic principles. We must ensure that food and beverages derived from plants and animals do not become *haram* (forbidden) for consumption simply because the operations were conducted by those lacking an Islamic approach.

To this end, we require agribusiness management that adheres to Sharia principles. Management is a series of processes—encompassing planning, organizing, implementation, supervision, evaluation, and control—designed to optimally utilize an organization's resources (human, capital, material, and technological) to achieve its objectives. As an organizational system, agribusiness requires operations that are managed correctly, systematically, clearly, purposefully, and orderly, in accordance with the emphasis placed by Islamic Sharia. This is illustrated in a Hadith narrated by Al-Tabarani, Al-Tirmidhi, and Al-Nasa’i: "Indeed, Allah loves those who, when performing a task, do so with ‘itqan’ (precision, clear direction, clarity, and thoroughness)."

The sequence of planning, organizing, implementation, supervision, evaluation, and control constitutes the management functions that are also applied within agribusiness management. These functions apply to every stage of agribusiness activity, whether in production management, agro-industry, marketing, or agribusiness risk management.

Regarding production or cultivation, agricultural production management aims to enhance both the quantity and quality of output. The Quran encourages multiplying harvest yields and improving quality through the application of appropriate cultivation technologies and the use of high-quality production inputs. In the realms of marketing and trade, the Islamic approach focuses on facilitating connections and serving both producers and consumers, rather than establishing an independent authority that dominates the entire agribusiness system.

How should risk be managed from an Islamic perspective? Farming and agribusiness operations are fraught with risk—which is precisely why commercial banks are often reluctant to get involved. These risks include climatic unpredictability, pest and disease outbreaks, and the risk of value depreciation. Such depreciation can stem from a decline in quality, price fluctuations, or shifts in consumer preferences. These risks weigh heavily on those involved in agribusiness.

Islam provides guidance that all forms of tests and risks must always be viewed as trials or disasters that come from Allah SWT. In this regard, Ali 'Imran's letter verse 117 states: "The parable of the treasures they invest in this worldly life is like the parable of a wind that contains very cold air which falls on the fields of a people who wrong themselves, then the wind destroys them. And Allah does not wrong them, but they are the ones who wrong themselves."

The harvest must be sold. So, in agribusiness there is trade. Trading or what used to be called trading, especially over long distances, between islands and even between continents; is a way of preaching. During the time of the Prophet Muhammad SAW, trade was carried out, both domestic trade and foreign trade. The mission is not only to trade and make a profit, but also to preach and broadcast the Islamic religion. It was from trading that the spread of Islam developed and spread throughout the world. The companions of the Prophet and Arabs often traveled for trade to various countries including China, Malaysia, the Philippines and also Indonesia.

Traders, who buy something and then sell it, or in Malay literature are often called "saudagar"; don't underestimate it. Abu Said narrated that the Messenger of Allah once said, "Traders who are honest and trustworthy will be included in the class of the Prophets, shiddiqien, and martyrs." However, on another occasion the Prophet warned that the market is a place where we must be careful. Becoming a trader is not easy, especially being an honest trader. The Prophet knew this very well because he was once a trader. Abdullah bin Umar was a successful trader, as were Abu Bakr, Umar and Uthman, whose wealth was obtained from trading.

Farming and trading were the jobs of the Apostles. Agriculture is the foundation that sustains all life; it is a primary sector. All other sectors would stagnate if the primary sector failed to function. A wool garment factory cannot operate until sheep farmers produce quality wool; a textile manufacturer cannot function if cotton farmers have not harvested their crops—and so on.

Prophets and Messengers worked to sustain the continuity of their mission (da'wah). Engaging in trade, agriculture, or animal husbandry to earn a livelihood was never considered beneath their dignity, nor did it diminish the quality of their reliance on God (tawakkul). Islamic scholars, too, were known for their industriousness and diligence in their endeavors, while remaining steadfast and resilient in the pursuit of knowledge and the propagation of the faith. During his time as Caliph, Abu Bakr would go to the market every morning, carrying garments on his shoulders to sell. When he encountered Umar and Ubaidah bin Jarrah, they asked him, "How can you engage in trade while serving as the leader of the Muslims?" Abu Bakr replied, "How else am I to support my family?" This was despite the fact that, like Umar, Abu Bakr received a stipend from the public treasury (Baitul Mal).

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