Risk Analysis of Rice Farming at Volcano Semeru Area, Pronojiwo District, Lumajang Regency, Indonesia

Abstract

This study aimed to analyze the production and financial risks of paddy rice farming in Pronojiwo district, Lumajang Regency, East Java, Indonesia. The research was conducted in March to May 2021, after the case of Semeru eruption in December 2020. The villages sample were Oro-Oro Ombo and Supiturang, the two most affected by the Mount Semeru lava flow. Primary data were obtained from the amount of 95 respondents chosen randomly. The risk of production and financial were analyzed by Coefficient of Variation (CV). Meanwhile, the factors affecting farm risk is analyzed by using regression method. The result of production risk on paddy rice farming in Pronojiwo, Lumajang Regency shows a low risk, namely indicated by CV of 35.38 %. However, the farm income risk is much higher, indicated by CV of 79.08 %. The factors affecting production risk is usage of chemical fertilizer. The increased number of chemical fertilizer will increase production risk of rice farming.

Keywords

• financial risk
• paddy rice farming
• production risk.