Analysis of Income and Risk of Cassava Farming Business in Bosar Galugur, Simalungun, Indonesia

Abstract

This study was conducted to determine the production costs incurred by farmers for cassava farming per hectare per year to find out the net income obtained from cassava farming per hectare per year, how the level of production risk, costs and income of cassava farming is, and how the risk management of cassava farming is carried out by farmers in the research area. The research location is in Bosar Galugur Village, Tanah Jawa District, Simalungun Regency. Determination of the research area is done purposively (deliberately). The sampling method used the census method (saturated sample). The data analysis method used is descriptive analysis and coefficient of variation (CV) analysis. The results showed that the average production cost of cassava farming in the study area was Rp.13,766.604,65/ha/year. The average income of cassava farming in the research area is Rp. 35,303,706.64/ha/year and the average net income of cassava farming in the study area is Rp. 21,537,102/ha/year. The level of production risk, cost, and income faced by cassava farmers in the study area is low (KV < 0.5 and L > 0). The risk management of cassava farming carried out by farmers is the production risk of making beds and cleaning drainage/trenchments, the risk of farmers borrowing money from toke/agents, and the risk of income; there is no special management carried out by farmers because farmers cannot determine prices.