Cost and revenew analysis of arrowroot farming in Yogyakarta, Indonesia

Abstract

Abstract Arrowroot is a commodity that has been cultivated for generations in Yogyakarta. Arrowroot can grow on land that is exposed to little sunlight that can be planted on yard or even developed on a large scale on land under crop stands so that it can increase land productivity and increase farmers’ income. Arrowroot can be used as raw material for flour. As a result, Garut is a viable local food source with economic potential that should be considered in future. This study aimed to determine the costs, revenues, incomes, profits, and efficiency of arrowroot farming in Yogyakarta, Indonesia. The basic research method used in this research is descriptive and analytical. This study used survey techniques to conduct door-to-door interviews with arrowroot farmers. The purposive sampling method was used to select the sample, with respondents being farmers who actively cultivated arrowroot every year and were registered in Department of Agriculture and Food Security of Yogyakarta. The total research sample was 92 farmers spread across 3 sub-districts in Yogyakarta. Cost analysis, revenue, income, farm profit, and the R/C ratio were all used in the analysis. The results showed that the average farming costs in one growing season consisted of explicit costs of IDR 1,634,728.07/ha and implicit costs of IDR 21,034,373.62/ha. The average farm revenue was IDR 13,491,298.19/ha. The average farm income was IDR 11,856,570.12/ha. The average farm profit was -IDR 9,177,803.50/ha. The average R/C ratio on explicit costs was 8.25, meaning the farm is efficient, and the average R/C ratio on total costs was 0.60, meaning the farm is inefficient.