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Survey Paper | Agricultural Economics | Indonesia | Volume 12 Issue 6, June 2023 | Rating: 5.5 / 10

Income and Feasibility Analysis of Rice Farming: a Case Study of the Food Policy Program (Upsus Pajale) Beneficiary Farmers in Jember Regency, East Java Province, Indonesia

Meidiana Purnamasari | Wen-Chi Huang

Abstract: Indonesia is the third largest rice producer in the world and also rice importer. Therefore, since 2015, the Indonesian government has established the food policy program called Upsus Pajale to improve farmers welfare, increase production, and achieve self-sufficiency. The programs provided various one-time input subsidies for rice farmers. However, in 2022, Indonesia was still a rice-importing country. This paper investigated the income and feasibility analysis of rice farmers. In total 106 rice farmers were interviewed. The results showed that the total revenue of IDR 23,611,915.9 per hectare and a total cost of IDR 10,023,567.3 per hectare, the profit of rice farming was IDR 13,588,348.5 per hectare. The feasibility analysis of the R/C ratio value was 2.5, while the B/C ratio was 1.5. Means that IDR 1 of cost can generate income of IDR 2.5, and IDR 1 of cost can generate benefits or profit of IDR 1.5. In short, rice farming is profitable for farmers. In addition, research found that the largest cost of rice production was spent on labor and fertilizers. Hence, the government should be focused on providing intensive training to facilitate the transfer of technology, so farmers will be able to operate more efficiently.

Keywords: farm income, feasibility analysis, food policy, rice farming, Upsus Pajale

Edition: Volume 12 Issue 6, June 2023,

Pages: 1792 - 1797