Profitability and income analysis of a rice seed cultivation partnership

Abstract

The seed farming is a promising business that can be a solution to increase farmers’ income. However, limited capital, narrow land, and limited human resources and technology often become obstacles for farmers, especially small farmers, in running their business. Partnership patterns between rice seed farmers and partner companies can be a solution to overcome these problems. This study aims to determine the effect of partnerships on the level of profitability and farmer income. The research was conducted in Subang Regency, Indonesia. Samples were taken as many as 50 rice seed farmers. The analysis carried out includes cost analysis, income and profitability analysis. The results showed that rice seed farmers who have partners are more profitable than farmers who are not partners. This can be seen from the value of the R/C ratio in the farms of partner farmers, which is greater than that of non-partner farmers. Partner farmers have an R/C value of 1,3 while non-partner farmers have an R/C value of 1,14. When viewed from an income perspective, the income of partner farmers is higher than that of non-partner farmers. The income of the partner farmers is IDR 8.803.095, - while the non-partner farmers’ income is Rp. 4.154.691, -.