Profit Of Smallholder Palm Oil In Nagan Raya Andaceh Tamiang Aceh Province

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Profit Of Smallholder Palm Oil In Nagan Raya Andaceh Tamiang Aceh Province

Journal Title: IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS) - Year 2018, Vol 11, Issue 11

Abstract

This study aims to identify and analyze the profit in smallholder farm palm oil in Nagan Raya and Aceh Tamiang Aceh Province.The data used in this study is the input-output data of smallholder palm oil, and other agricultural resources. The secondary data was obtained from the Central Statistics Agency, as well as from several research results and the annual report of the Department of Forestry and Plantation of Aceh Province, also other agencies associated with this research. The primary data of this research was obtained directly from the field, either through a verbal interview to the respondents as well as through questionares. An optimization linear programming technique with resources constraints was used in order to seek the optimal allocation solution to answer the problem which is the Output Unit Price Cobb-Douglass Profit Function Model. Then the model was analyzed using Cobb-Douglass Profits Function Model which are developed by the Cobb-Douglass. Regression estimation of profit or the aggregated profit of the palm oil plantations is affected by factors of land, number of plants, capital, fertilizer, medicine, labor, and experience, as well as the cost of each of these factors. All of these variables influence the profit of palm oil plantation and are sufficient to explain the variations in the profit. By looking at the sensitivity analysis, palm oil farmers need to carefully consider the factors influence profit, which includes land, number of plants, capital, fertilizer, medicine, labor, experience of smallholders (including the cost of resources). This study depart from previous study by exercising farmer experience variable. The latter variable is the most importance variable to contribute the amount of profit, which is the novelty of this research. Failure to use the limited input resourceseffeciently would make the profit has not been maximization. In this case, handle directly by the role of government is needed, especially to intervene in matters which are difficult to reach farmers, for example, the addition of business land, subsidized seeds and fertilizers, as well as improvement to farmers capabilityto manage agricultural resources more optimally through agriculture extension or improvement of experienced partner.

Authors and Affiliations

Vivi Silvia

Keywords

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EP ID EP409223
DOI 10.9790/2380-1111014452.
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