The Profitability of Sweet Potato Farming in Karanganyar Regency, Central Java

Abstract

Sweet potato production in Indonesia is spread across several provinces, including Central Java, with a harvest area of 6,348 hectares (ha), production of 145,068 tonnes, and productivity of 228.51 quintals (Ku)/ha. One of the regencies with the largest harvest area is the Karanganyar Regency, with a harvest area of 868 hectares. This present study aims to analyze the cost, revenue, income, profit, and profitability of sweet potato farming in Karanganyar Regency. Besides, the study also analyses the efficiency of farming. In this study, the analysis of sweet potato farming costs is calculated using explicit costs and implicit costs. Implicit costs include the cost of seeds and labor in the family. The explicit costs include labor outside the family, fertilizer, pesticides, taxes, equipment depreciation, and own capital interest. Forty sweet potato farmers located in Tawangmangu and Ngargoyoso District, Karanganyar, were used as samples. The sample utilizes a simple random sampling method. The data analysis used is the analysis of costs, revenues, income, profits, efficiency, profitability. Data was obtained from an interview and questionnaire to the respondents. Results of descriptive statistics indicate that the revenue received is IDR 99,488,080 per hectare, while the explicit and implicit costs are IDR 8,068,714 per hectare and IDR 26,906,990 per hectare, respectively. The farming generates income IDR 91,419,366 per hectare and obtains a profit of IDR 64,512. 376 per hectare. Sweet potato farming is classified as efficient and profitable with an efficiency value of 2.8 per hectare and a profitability value of 1.8.