Issue |
BIO Web Conf.
Volume 119, 2024
The Second International Conference on Agriculture, Natural Resources, and Rural Development “Enabling Policies Towards Resilient Agriculture and Sustainable Rural Development” (2nd ICANaRD)
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Article Number | 04005 | |
Number of page(s) | 10 | |
Section | Agricultural Institution, Agricultural Finance and Insurance | |
DOI | https://doi.org/10.1051/bioconf/202411904005 | |
Published online | 12 July 2024 |
Financial feasibility of developing early-stage organic rice farming: A case study in Tasikmalaya of Indonesia
1 Research Center for Behavioral and Circular Economics, National Research and Innovation Agency, Jakarta, Indonesia
2 Research Center for Social Welfare, Village, and Connectivity, National Research and Innovation Agency, Jakarta, Indonesia
3 Research Center for Economics of Industry, Services, and Trade, National Research and Innovation Agency, Jakarta, Indonesia
4 Research Center for Cooperatives, Corporation, and People’s Economy, National Research and Innovation Agency, Jakarta, Indonesia
* Corresponding author: srihery@gmail.com
Intensive rice farming using inorganic fertilisers creates the problem of soil fertility degradation and further impacts decreasing rice productivity. Alternative technologies are needed to increase production while maintaining the sustainability of agricultural resources through organic rice farming. This study aims to 1) analyse the financial feasibility of organic rice farming, 2) identify the constraints in developing organic rice farming, and 3) formulate an alternative policy to develop organic rice farming in Tasikmalaya, Indonesia. The primary data were collected from 30 organic rice farmers. Traditional rice farmer’s groups were also interviewed for comparison. The financial feasibility was analysed using cost and benefit analysis. The results showed that organic rice in Tasikmalaya is financially profitable, with the R/C ratios ranging from 1.14 to 1.45. However, the profit is still much lower than traditional rice farming. The main constraint to increasing organic rice profit is that the price of organic rice grain is not different from traditional rice since marketing institutions have not yet been established. To increase the profit of organic rice farming, the government should encourage farmers to keep growing organic rice, accompanied by technical guidance and establishment of organic rice processing and marketing institutions.
© The Authors, published by EDP Sciences, 2024
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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