The impact of climate change on tobacco farming income in Temanggung Regency, Central Java, Indonesia

Abstract

Tobacco is produced extensively in Indonesia, with the most excellent yields discovered in Temanggung Regency, located in Central Java. Climate change and increasing tobacco excise affect farmers' income. The study aims to determine the cost, profit, and feasibility of chopped tobacco farming after climate change and rising excise tax. This study involved 74 respondents, selected using simple random sampling, and utilized both primary and secondary data. The feasibility analysis employed the Revenue Cost Ratio (R/C) and Break Even Point (BEP) criteria. The results unveiled that chopped tobacco production was 773 kg/5,625 m2 or 1,374 kg/hectare and climate change had no effect on production. Chopped tobacco farming per growing season for five months required a total cost of IDR 37,013,965. a revenue of IDR 38,551,056, and a profit of IDR 1,537,091. Climate change and rising excise tax on chopped tobacco farming could reduce profits. However, following the R/C and BEP criteria, chopped tobacco farming was feasible.