Implementation and financial analysis of good agricultural practices (GAPs) of True Cardamom (Amomum compactum SoL.): The experience from smallholders’ farmers

Abstract

True cardamom is a biopharmaceutical plant used for the essential ingredients of traditional medicines, spices, additives, and herbs in various industries. Farmers should adopt Good Agricultural Practices (GAP) for good quality and productivity, which can increase cultivation costs. Evaluating the implementation of GAP and the financial aspect is important to see its feasibility. This study aims to assess GAP’s application level and its financial analysis based on adoption. Respondents were taken using the Cluster Random Sampling method, which determined as many as 43 farmers in Cisolok District. Based on the level of implementation of True Cardamom’s GAP, the farmers are categorized as high, medium, and low adoption with a percentage of 25%, 75%, and 0%, respectively. The financial analysis results of the Net Present Value (NPV) of high-category farmers and medium-category are IDR 88,603,622.39 and IDR. 31,879,670.82, respectively. The high-category GAP adoption has a higher value of Net Benefit-Cost Ratio than the others, medium-category, 4.5 and 2.4, respectively. So do the Internal Rate of Return (IRR) values; high-category has an IRR value more significant than the other which the IRR is higher than the interest rate (11%). Cardamom business is declared financially feasible with a payback period at the application level of GAP for high and medium categories: two years, two months, and five years and six months, respectively.