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All Journal Tadbir: Journal of Islamic Economics and Management
Risma Lailatul fitria
Universitas pangeran diponegoro nganjuk
Religion Humanities Economics, Econometrics & Finance Education

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Feasibility Study of Environmentally Friendly Agricultural Businesses Amid Industrial Development in Nganjuk Regency Risma Lailatul fitria
TADBIR: Journal of Islamic Economics and Management Vol. 2 No. 1 (2026): TADBIR: Journal of Islamic Economics and Management
Publisher : Prodi Ekonomi Syariah Universitas Pangeran Diponegoro Nganjuk

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Abstract

This study examines the potential of environmentally friendly agricultural enterprises in Nganjuk Regency amid the rapid development of the industrial sector, which has begun to hinder conventional farming practices. The objective of this research is to assess business feasibility from financial, technical, market, and environmental impact perspectives as an alternative model for sustainable agriculture. The research employed a mixed-methods approach, involving questionnaires distributed to 150 farmers, in-depth interviews, and financial feasibility analysis using Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit-Cost Ratio (BCR). The results indicate that environmentally friendly agriculture is financially feasible, with a positive NPV of IDR 245,000,000, an IRR of 18.5%, and a BCR of 1.45. From a technical perspective, organic farming methods increase soil productivity by up to 35% and reduce chemical input usage by 60%. From a market perspective, demand for organic products shows a steady increase of approximately 25% per year, although several challenges remain, including limited access to financing, lack of technical skills, and land competition with industrial development. In conclusion, environmentally friendly agricultural businesses have strong prospects for development; however, they require government support in the form of training, financing schemes, and land protection policies in order to sustain their viability amid ongoing industrial pressure.
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