Integrated and Sustainable Agriculture
Vol 1 No 3 (2025): Integrated and Sustainable Agriculture

Economic Performance and Production Efficiency of Red Chili Farming within an Agropolitan Agricultural System

Bachrul, Nur Alam (Unknown)



Article Info

Publish Date
11 Jan 2025

Abstract

Sustainable agricultural development requires farm-level efficiency to be analyzed within integrated regional systems. Despite the economic importance of red chili farming, empirical evidence linking production efficiency and economic performance within agropolitan agricultural systems remains limited. This study applied a quantitative explanatory approach to assess the economic performance and production efficiency of red chili farming within an agropolitan system. Farm income analysis was used to evaluate economic viability, while a Cobb–Douglas production function estimated input elasticities and returns to scale based on primary survey data from red chili farmers. The results indicate that red chili farming is economically viable, generating a net farm income of IDR 4,597,870.97 per production cycle on 2,080 m² of land, with revenue–cost ratios of 2.59 (cash costs) and 1.59 (total costs). Average productivity reached 0.44 kg per plant, reflecting moderate performance constrained by inefficient input allocation. The production function analysis reveals increasing returns to scale, with a total elasticity of 1.28533. The study demonstrates that efficiency and favorable scale dynamics underpin the economic sustainability of red chili farming within agropolitan systems. These findings highlight the role of efficiency-oriented interventions and system-level coordination in supporting integrated and sustainable horticultural development.

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Journal Info

Abbrev

insagri

Publisher

Subject

Agriculture, Biological Sciences & Forestry Environmental Science

Description

Integrated and Sustainable Agriculture (e-ISSN 3063-3583) is a multidisciplinary journal that examines agricultural system phenomena in general, as well as interactions between fields of knowledge through integrated and sustainable agriculture. The integration system includes agriculture, animal ...