Implications of the application of rafaksi on cassava farmers' income in Central Lampung Regency

¹ Agricultural Economics Study Program, Department of Resource and Environmental Economics, Faculty of Economics Management, IPB University, Bogor, 16680, Indonesia
² Agribusiness Department, Faculty of Economic and Management, IPB University, Bogor, 16680, Indonesia
³ Food Agribusiness Study Program, Department of Economics and Business, Lampung State Polytechnic, Lampung, 35144, Indonesia

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

This study aims to analyze starch content, production costs, and farmers' income for three cassava seed varieties (Adira 4, Garuda, and Sekoci) in Central Lampung Regency, and to evaluate the implications of the rafaksi standard imposed by tapioca factories on farmers' income. Data were collected through interviews with 174 farmers and analyzed using the Luff-Schoorl method for starch content and the revenue-to-cost (R/C) ratio to assess the relationship between costs and income. The results show that the Adira 4 variety has the highest starch content at 33.64%, compared to Garuda and Sekoci. However, the application of an 43% rafaksi reduced farmers' income, making cassava farming unprofitable. In the case of Adira 4, cash costs accounted for 76.24% of total revenue, while total costs reached 108.18% of total revenue, resulting in a net loss of IDR 1,923,072. A similar pattern was observed in the Garuda and Sekoci varieties, where the proportion of total costs exceeded revenue, resulting in a total income loss. These losses indicate a need to review the base price policy and implement a lower, fairer rafaksi standard to improve farmers' welfare, while taking into account the potential benefits of high-starch cassava varieties.