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All Journal Agriecobis : Journal of Agricultural Socioeconomics and Business
Siti Nurazizah Jufri
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Economics, Econometrics & Finance Environmental Science Social Sciences

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Production Cost Architecture and Financial Viability of Irrigated Rice Farming in Central Mamuju Regency Siti Nurazizah Jufri; Indriani; Siti Nur Syam Ismanizah A.; Lisah
Agriecobis : Journal of Agricultural Socioeconomics and Business Vol. 9 No. 01 (2026): March
Publisher : Universitas Muhammadiyah Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22219/agriecobis.v9i01.45354

Abstract

The production of rice in the regency of Central Mamuju acts as a crucial factor in ensuring regional food security and is set up to become a leading producer for the country. However, the peasants face the issue of economic inequalities due to the increase in the level of variable costs and lack of availability of the arable land, thus, posing a threat to the sustainability of their profit margins. The purpose of this paper is to conduct a detailed analysis of the cost structure and to examine the economic feasibility of the irrigation rice production in the village of Polo Pangale. Quantitative descriptive methodology was used as the main method of data collection from 10 active farmers via conducting structured interviews and observations. It was revealed that the average amount of costs required per one growing period reaches the sum of IDR 85,274,000, out of which 97 percent are variable costs (production materials and wages). Even though the rice plantation needs a considerable sum of working capital, the harvesting of the paddy brings an amount of up to IDR 268,860,000, thus providing an amount of IDR 183,586,000 as net income for the farmers' households. The economic feasibility is assessed by R/C Ratio and reaches 3.152.
Co-Authors Indriani Lisah Siti Nur Syam Ismanizah A.