Agro Ekonomi
Vol 37, No 1 (2026): JUNE 2026

Risk Analysis of Red Chili Farming with an Irrigation System

Francy Risvansuna Fivintari (Agribusiness Department, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Indonesia)
Adelia Nur Fathia (Agribusiness Department, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Indonesia)
Zuhud Rozaki (Agribusiness Department, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Indonesia)
Heri Akhmadi (Department of Agricultural and Resource Economics, Kangwon National University, South Korea)
Nalini Arumugam (Agriculture Sciences and Biotechnology Department, Faculty of Bioresources and Food Industry, Universiti Sultan Zainal Abidin, Malaysia)
Wiwi Susanti (Master of Agricultural Economics, Department of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, Yogyakarta, Indonesia)
Francy Iriani Ekawati (Management Study Program, Faculty of Economy and Social Sciences, Universitas Trilogi, Jakarta, Indonesia)
Yunanto Yunanto (Master of Management Agribusiness, Department of Agricultural Socioeconomics, Faculty of Agriculture, Universitas Gadjah Mada, Yogyakarta, Indonesia)



Article Info

Publish Date
11 Jun 2026

Abstract

Red chili cultivation on marginal land such as coastal sandy lands faces agroclimatic challenges, including low nutrient content, high temperatures, and limited soil water-holding capacity. These constraints require appropriate manure application to improve soil structure and the selection of efficient irrigation systems to ensure adequate water availability. This study aimed to identify the factors influencing production and production risk in red chili farming under shower and non-shower irrigation systems on rice-field and coastal sandy lands in Bantul Regency. A total of 116 farmers were selected using a combination of random sampling and census techniques. Data were analyzed using the Cobb–Douglas production function to estimate the elasticity and contribution of production inputs, and the Just and Pope risk production model to evaluate the determinants of yield variability and production risk across irrigation and land-use systems. The results showed that several input variables significantly affect red chili production, namely land area, ZA fertilizer, Red Phonska, KCl, TSP, labor, and irrigation system. Land area, ZA fertilizer, and labor have positive and significant effects on output, whereas Red Phonska, KCl, and TSP fertilizers significantly reduce production. Red chili production differs significantly between non-shower irrigation systems and shower irrigation systems.. Risk analysis further revealed that land area and manure significantly increase production risk, and that coastal sandy land exhibits differs production risk than paddy fields. These findings highlight that irrigation selection, balanced fertilization strategies, and appropriate land-use choices are critical to improving productivity while mitigating production risk. Strengthened agricultural extension support is necessary to promote efficient input use, improved irrigation scheduling, and adaptive farm management in diverse agroecosystems.

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Journal Info

Abbrev

jae

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

Description

AE is a media for dissemination information of thinking and research from lecturers, researchers, students, and practitioners who are interest to produce the scientific work in the agricultural and natural resource policies, agribusiness and agricultural extension & communication sciences. The focus ...