Farmers should consider the level of risk associated with each type of farming

Oct 13, 2025 by magicalceylontours.com 104 views

Introduction

The agricultural sector plays a vital role in the economy of many countries, including Indonesia. In Karo Regency, farming is a significant source of income for many families. However, farming is also a high-risk activity, and farmers often face various challenges, including production risks, price risks, and income risks. This study aims to analyze the comparison of income between sechium edules (pumpkin) and cabbage farming in Bulanjahe Village, Barusjahe District, Karo Regency. The analysis will be carried out using the method of cost analysis, revenue, income, and risk.

Methodology

The study used a case study approach, focusing on the farming activities in Bulanjahe Village, Barusjahe District, Karo Regency. The data were collected through a survey of 20 pumpkin farmers and 20 cabbage farmers. The survey included questions on the total cost of production, total revenue, and income earned by each farmer. The data were then analyzed using the method of cost analysis, revenue, income, and risk.

Results

The results of the study showed that the pumpkin farmers issued an average total cost of Rp. 29,712,622.89 per hectare per year. Of this amount, they get an average of Rp. 79,494,096.84 per hectare per year. Thus, the average income earned by pumpkin farmers reaches Rp 49,781,473.96 per hectare per year, which is smaller than the income earned by cabbage farmers.

Conversely, cabbage farmers recorded an average total cost of Rp 38,544,716.67 per hectare per year, with a total revenue reaching Rp 94,445,000 per hectare per year. From this data, the average cabbage farmer income is Rp. 55,900,283.33 per hectare per year.

Risk Analysis

The level of risk faced by both types of farming also needs to be considered. Variation coefficient value (KV) for chayote farming shows that production risk is 0.03, price risk of 0.04, and income risk 0.09. In this case, the risk of conjoined pumpkin revenue is fairly low.

Conversely, cabbage farming shows a higher risk value with a production risk of 0.10, price risk of 0.07, and income risk of 0.18. This indicates that cabbage farming tends to be more risky compared to chayote, where greater uncertain factors can affect farmers' income.

Conclusion

From the analysis conducted, it can be concluded that chayote farming has smaller income but with a lower level of risk compared to cabbage farming. Conversely, even though the income from cabbage farming is higher, the risks faced by cabbage farmers are far greater. Therefore, farmers who choose to invest in cabbage farming must consider the risks they will face, whereas pumpkin farmers may prefer stability even with lower income.

Implications

This information can be a reference for farmers and policy makers in determining strategic steps in agriculture in Karo Regency, to improve the welfare of farmers and ensure the sustainability of farm businesses. The study suggests that farmers should consider the level of risk associated with each type of farming before making a decision. Additionally, policy makers should consider implementing policies that can reduce the risks faced by farmers, such as providing training and education on risk management, and providing access to credit and other resources.

Recommendations

Based on the findings of this study, the following recommendations are made:

Farmers should consider the level of risk associated with each type of farming before making a decision.
Policy makers should implement policies that can reduce the risks faced by farmers, such as providing training and education on risk management, and providing access to credit and other resources.
Farmers should diversify their crops to reduce their dependence on a single crop and to spread their risk.
Farmers should consider using risk management strategies, such as crop insurance and futures markets, to manage their risks.

Limitations

This study has several limitations. Firstly, the study only focused on two types of farming, chayote and cabbage, and did not consider other types of farming. Secondly, the study only considered the risks faced by farmers in Bulanjahe Village, Barusjahe District, Karo Regency, and did not consider the risks faced by farmers in other areas. Finally, the study only considered the risks faced by farmers in the short term and did not consider the long-term risks.

Future Research

Future research should consider the following:

Conducting a study on other types of farming, such as corn and soybeans, to compare the risks faced by farmers in different types of farming.
Conducting a study on the risks faced by farmers in other areas, such as in other regencies or provinces.
Conducting a study on the long-term risks faced by farmers, such as the impact of climate change on farming.
Conducting a study on the impact of risk management strategies on farming, such as the impact of crop insurance on farming.

By considering these limitations and future research directions, this study contributes to the existing literature on risk analysis in agriculture and provides valuable insights for farmers and policy makers in Karo Regency.

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the comparison of income between sechium edules (pumpkin) and cabbage farming in Bulanjahe Village, Barusjahe District, Karo Regency.

Q: What methods were used in this study?

A: The study used a case study approach, focusing on the farming activities in Bulanjahe Village, Barusjahe District, Karo Regency. The data were collected through a survey of 20 pumpkin farmers and 20 cabbage farmers.

Q: What are the results of the study?

A: The results of the study showed that the pumpkin farmers issued an average total cost of Rp. 29,712,622.89 per hectare per year, with an average income of Rp 49,781,473.96 per hectare per year. Conversely, cabbage farmers recorded an average total cost of Rp 38,544,716.67 per hectare per year, with a total revenue reaching Rp 94,445,000 per hectare per year.

Q: What are the risks faced by pumpkin and cabbage farmers?

A: The study found that pumpkin farmers face a lower level of risk compared to cabbage farmers. The variation coefficient value (KV) for chayote farming shows that production risk is 0.03, price risk of 0.04, and income risk 0.09. Conversely, cabbage farming shows a higher risk value with a production risk of 0.10, price risk of 0.07, and income risk of 0.18.

Q: What are the implications of this study?

A: The study suggests that farmers should consider the level of risk associated with each type of farming before making a decision. Additionally, policy makers should consider implementing policies that can reduce the risks faced by farmers, such as providing training and education on risk management, and providing access to credit and other resources.

Q: What are the recommendations of this study?

A: Based on the findings of this study, the following recommendations are made:

Farmers should consider the level of risk associated with each type of farming before making a decision.
Policy makers should implement policies that can reduce the risks faced by farmers, such as providing training and education on risk management, and providing access to credit and other resources.
Farmers should diversify their crops to reduce their dependence on a single crop and to spread their risk.
Farmers should consider using risk management strategies, such as crop insurance and futures markets, to manage their risks.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, the study only focused on two types of farming, chayote and cabbage, and did not consider other types of farming. Secondly, the study only considered the risks faced by farmers in Bulanjahe Village, Barusjahe District, Karo Regency, and did not consider the risks faced by farmers in other areas. Finally, the study only considered the risks faced by farmers in the short term and did not consider the long-term risks.

Q: What are the future research directions?

A: Future research should consider the following:

Conducting a study on other types of farming, such as corn and soybeans, to compare the risks faced by farmers in different types of farming.
Conducting a study on the risks faced by farmers in other areas, such as in other regencies or provinces.
Conducting a study on the long-term risks faced by farmers, such as the impact of climate change on farming.
Conducting a study on the impact of risk management strategies on farming, such as the impact of crop insurance on farming.

By considering these FAQs, this study provides valuable insights for farmers and policy makers in Karo Regency, and contributes to the existing literature on risk analysis in agriculture.