International Journal of Natural Sciences and Interdisciplinary Research(IJNSIR)
ISSN: 3143-1046 | DOI: 10.33140/IJNSIR
Artisa Anggraeni Amin
Department of Socio-Economics of Agriculture, Faculty of Agriculture, Hasanuddin University, Makassar, Indonesia
Publications
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Research Article
Financial Feasibility, Cost Structure, and Profitability Determinants of Smallholder Pepper Farming: An Integrated Cost-Revenue and Sensitivity Analysis
Author(s): Aprian, Ratnawati Tahir, Jumiati Jumiati*, Hasriani, Muh. Ikmal, Ardi Rumallang, Akbar Akbar, Saleh Molla and Artisa Anggraeni Amin
This study evaluates the financial feasibility, cost structure, and profitability determinants of smallholder pepper (Piper nigrum L.) farming using processed farm-level cost and revenue data from 22 respondents. The analysis integrates farm budgeting, revenue-cost ratio analysis, cost-share decomposition, sensitivity simulation, and regression-based interpretation of profitability drivers. The results show that pepper farming is financially feasible under observed production and price conditions. Average total revenue reached IDR 292,900,000 per year, while average total cost was IDR 52,280,000 per year, generating average net income of IDR 240,620,000 and an R/C ratio of 5.62. Variable costs dominated total production costs, especially labor cost, which accounted for 49% of total cost, followed by pesticide cost (19%), fertilizer cost (15%), depreciation (14%), and land tax (3%). Se.. Read More»