ANALYSIS OF INCOME AND FEASIBILITY OF PALM OIL FARMING IN KAMPAR REGENCY, INDONESIA

Abstract

This study was aimed to analyze: a) the income of palm oil farmers in Kampar Regency; b) factors that affect the income of palm oil farmers; and c) analyze the feasibility of palm oil farmers' businesses in Kampar Regency. This research was conducted using survey method in Kampar Regency that was chosen purposively. The results of the income analysis was IDR 269,006,280 per farmer per year with an average farmer land area of 7.08 ha. The results of multiple linear regression analysis showed that variable selling prices, total fertilizer costs, total pesticide costs, total labor costs, and total productions significantly affect the income of palm oil farming in Kampar Regency simultaneously and partially with level of trust 95%. Palm oil cultivation business in Kampar Regency was feasible to run because: a) had a profitability value of 772.95% which is higher than the deposit rate of Bank BRI in May 2021 of 3%, b) Payback period for 7 years and 24 days which means faster efforts than the economic age of palm oil plants that is between 25-26 years, and c) the value of Return on Investment of 1,518% which is higher than 100%.

Keywords

• feasibility
• income
• palm oil