Analysis of Financial Feasibility and Sustainability of Rice Farming in South Ogan Komering Ulu Regerency South Sumatera Province
DOI:
https://doi.org/10.31150/ajebm.v7i7.2853Keywords:
Lowland Rice, Financial Deasibilityy, SustainabilityAbstract
This research aims to analyze the financial feasibility of lowland rice farming in South Ogan Komering Ulu Regency. The data analysis method used is a qualitative and quantitative analysis method with a sample size of 60 responses from lowland rice farmers in South Ogan Komering Ulu Regency. The results of the research show that the costs incurred to run a lowland rice farming business are divided into fixed costs and non-fixed costs incurred during one planting season, which is IDR 10,982,715/ha/MT. Fixed costs are IDR 6,748,440/ha/MT and variable costs are IDR 4,234,275/ha/MT. Analysis of the financial feasibility of lowland rice farming usingDiscount Factor14% indicated that the lowland rice farming project was feasible to run. This is shown by a positive NPV value of IDR 45,648,607, a Net B/C Ratio value of 2.87 (Net B/C Ratio>1) and an IRR value greater than the applicable interest rate, which is 98% over time. return on capital for 2.36 (2 years 4 months 7 days). Analysis of the sustainability of lowland rice farming uses three dimensions, namely the ecological dimension consisting of 6 attributes, namely (1) land area, (2) potential land area, (3) suitability of rice fields, (4) level of pest attacks, (5) use of pesticides and, (6) use of chemical fertilizers with a percentage of 47.60%, the economic dimension consists of 5 attributes, namely (1) area of cultivated land, (2) amount of production, (3) marketing system, (4) effectiveness of the marketing system and, (5) the selling price of grain with a percentage of 49.85%, and the social dimension consists of 4 attributes, namely (1) the farmer's latest education, (2) farmer family participation, (3) farmer side jobs and, (4) social system in lowland rice cultivation activities with a percentage of 49.80%. Based on analysisMultidimensional rapfishof each dimension is in value >0.25 means that the value indicates good attribute accuracy (good of fit). Meanwhile, the coefficient of determination (R2) each dimension and multidimensional quite high (close to 1). Thus, these two statistical parameters show that all the attributes used for each dimension are good enough to explain the sustainability of lowland rice farming in South Ogan Komering Ulu Regency.
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