FARM BUSINESS PAPERS

About
ANALYSIS OF FARMING AND MARKETING OF HORTICULTURE
FARMERS IN BOJONEGORO

ARRANGED BY :
Name : Moh. Lintang Samodra
NIM : H0718098
Phone Number : 089679617852

AGROTECHNOLOGY

AGRICULTURE FACULTY

SEBELAS MARET UNIVERSITY

SURAKARTA

2019
 CHAPTER I PRELEMINARY

1.1 Background
Bojonegoro Regency is one of the biggest contributors to food
production in East Java, including the potential for vegetable and fruit
horticulture. Horticultural commodities have high economic value and can be
a source for the community and farmers both small, medium and large scale,
because they have advantages in the form of high selling values, diversity of
species, availability of land resources, as well as potential uptake of markets
at home and abroad that continues to increase . Horticultural commodities
have also contributed significantly to the agricultural sector in general, which
can be seen from the value of horticultural Gross Domestic Product (GDP)
which tends to increase annually (Syahza, 2003; Director General of
Horticulture, 2011).
Seeing the reality that up to now more than half of our people depend on
the agricultural sector, and most of them live in the countryside, it is
appropriate that agriculture and the countryside become very important and
priority in each development beat. However, development carried out so far
has often ignored the above facts and had a large impact on changes in
economic and social structure. Economic development centered on sectors
outside agriculture, resulted in a multidimensional crisis at the end of the 90th
decade. The fundamental problem that finally occurred was a gap marked by
high levels of unemployment and poverty, while another problem was the
weakening of our economic competitiveness at regional and global levels
(Kuntoro Boga , 2010). From this condition an effort is needed to improve
their welfare by means of agricultural optimization, agribusiness
revitalization, agricultural diversification and facilitation for farmers who will
rent or own land through soft loans. With such efforts, it is hoped that the
welfare of farmers in Bojonegoro Regency can improve.
Bojonegoro Regency has several potential horticulture that are superior
namely Star Fruit, Salak, and Red Onion. Salak is concentrated in the District
of Kapas and District of Dander, and there are 10 (ten) villages in the District

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of Kapas that continuously cultivate zalacca, namely: Wedi, Tanjungharjo,

Tapelan, Youyar, Bangilan, Kedaton, Padangmentoyo, Sembung, Klampok
and Bendo with an area of approximately 275 Ha. In 2010 the production of
salak reached 18,464 kw, a figure far above the 2009 salak production which
only reached 11,840 kw. Starfruit is one of the specific horticultural products
produced in Kalitidu Subdistrict, especially Ngringinrejo and Mojo Villages.
The area of Belimbing plantations in the two villages is approximately 26 ha.
For Carambola has been cultivated in a special plantation area so that it has
more potential to be developed into a new tourism area with the design of
Agro-tourism (Khoiriah, et.al, 2014). Some shallot-producing districts are
Gondang, Sekar, Kedungadem, Temayang and Sugihwaras with a production
of 53,600 quintals. Shallots that already have these markets can be developed
for their agro-industry, especially if the harvest occurs simultaneously.
1.2 Purpose
This paper was prepared with the aim to find out the profile of food crop
farmers in Bojonegoro Regency which contains the condition of farmers,
farming systems, income and potential owned by farmers. Next analyze the
determinants that influence the behavior of farmers and socioeconomic
conditions in order to improve their welfare.

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 CHAPTER II DISCUSSIONS

2.1 Analysis of Farm Planning

Bojonegoro farming especially For chilli farming, it can be said that this
commodity gives great hope to be cultivated as a commodity that can
improve the welfare of farmers. The size of the crop is not too large, the
benefits can be very promising. The costs incurred by Bojonegoro farmers for
this farming are not too large, vary greatly in the range of 2.6 to 46 million
rupiah, with an average input provided around 17 million rupiah. Most of
these costs are for production facilities (fertilizer and chemicals), followed by
labor. The profits obtained are quite high, ranging between 5-73 million
rupiah per farmer. With an R / C ratio of 2.81 for 3 months of chili planting, it
can be said that this commodity is very profitable to be cultivated. Especially
if farmers can get premium prices when off season from this commodity (at a
price of 20 thousand rupiah / kg). Technology input is needed to be able to
produce chilli plants when off seasson (rainy season) for this region

When looking at the analysis of the data obtained from the field, the most
profitable commodity to be cultivated in this region is Shallot, although the
risk and costs required are also the greatest. Bojonegoro shallot farmers, input
costs for shallots range between 30-61 million, with an average of around 41
million per farmer, with an area of 0.5-1 ha. Of these costs the most is for
input costs (ranging from 40-60%), while the rest is for labor costs. From

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such a large amount of income will be obtained variations in income which is

also influenced by crop yields and highly fluctuating prices (between 15-30
thousand rupiah) at the farm level. For a farmer who works for shallots, they
can get an average net profit of 162 million rupiah. Of course, profits of this
magnitude are also influenced by the bear risk if the price obtained during the
harvest is low (falling). Therefore, in onion cultivation, farmers usually plant
in units of area that are not too large (an average of 0.83 ha). Seeing the
average R / C ratio of this commodity farming which is equal to 5.26, it can
be said that this coordination is very prospective and profitable to work on.
The local government can provide assistance to farmers in capital loans and
supporting facilities for proud input, given the need for inputs for this
commodity is very large.
Vegetable supplies from this area have certain seasons. Extreme climate
factors in the study area (flood or dry season) and pest attack greatly affect
vegetable supply. For chili, for example, during the main harvest season
(abundant production) after the rice planting season is complete, collectors
can buy chillies from farmers as much as 15 tons per day at a cheaper price
compared to when the chili production is low. This harvest usually lasts for 3
months between August and October. Meanwhile, when chilli production is
reduced in the market, the average traders collect chilli from farmers around 7
tons per day. Specifically for shallot commodities, planting is usually done at
the beginning of the rainy season around November-December and the main
harvest will occur in February-March. The onion harvest in February-March
in Indonesia is an off-season harvest, so farmers in this region usually enjoy
relatively high prices, ranging from 25-35 thousand per kilogram. However,
planting shallots in the rainy season certainly faces many obstacles, especially
the attack of diseases and fungi that attack plants. Diseases caused by pore
alternaria fungi, anthracnose, bacterial wilting, dew fur and mosaics are very
endemic in the rainy season in this region. This resulted in the use of
chemicals, especially fungicides, which were very high among onion farmers
in the study area. For vegetable yields, usually local collectors take it directly
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to the farmer's garden using a truck or pick-up and are brought to the
wholesale market, the local market or to the supermarket. Transport of
vegetables is borne by the collector. Collectors can use their own trucks or
rent. Rent a truck around 300 thousands. One truck can carry about 3 tons of
vegetables. Conversely, farmers can also bring their crops to the collecting
warehouse using motorcycles or other vehicles, where transportation is borne
by the farmers concerned. Transportation becomes important in marketing
vegetables. Transportation is not only transportation that is used to bring
vegetables to the target market but also includes road facilities that are passed
by vegetable transportation. Transportation for marketing vegetables in Kediri
remains an obstacle, as is generally the case in other regions in Indonesia
(APO, 1997). Improper and supportive transportation makes fresh vegetables
quickly damaged and rot (APO, 2006) so that the quality of vegetables
decreases once they reach the market. The low quality of vegetables is one of
several problems still faced by East Java related to vegetable marketing
(Kuntoro Boga Andri, 2010). The price of vegetables varies based on the type
of vegetables. For chillies, the price is determined by the prevailing market
price. Both traders and farmers have broad access to chilli price information.
Information can be obtained by farmers through telephone contact with
traders in the local market and in the wholesale market. The price of
vegetables is also determined based on the quality of the vegetables, which is
done based on certain grading. The highest quality vegetables get the best
price (Mutiarawati, 2007). For chilli for example, grading is based on the
outer appearance of the chilli (smooth, bright and fresh color); tomatoes are
graded by size (large, medium, small) and outward appearance (whether or
not smooth). While grading shallots are based on freshness, tuber size, tuber
color and variety (shape, size and aroma). For chillies, traders assess the
quality of chillies based on a cursory assessment of the physical condition of
chillies brought by farmers to them. Prices are also determined based on
agreements between traders and farmers. Some traders in the Bojonegoro
region collaborate with farmers by providing capital assistance in the form of
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fertilizers and pesticides, while farmers are cultivating these vegetables. After
harvesting, farmers sell their vegetables to capital traders according to the
agreements they make. During the big harvest season (supply is large), the
price of cayenne pepper at the farm level reaches Rp.10,000 per kg and
Rp.17,000 per kg at the consumer level, while when supplies are low, the
price of cayenne pepper at the farm level reaches Rp.70,000 per kg and Rp.
100,000 per kg at the consumer level.
 CHAPTER III CLOSSING

3.1 Conclusion
From the analysis of farming it can be concluded that the horticultural
commodities cultivated by farmers in Bojnegoro Regency have provided a
very satisfying level of profit. Farmers already know how to plan farming to
produce optimal outputs and minimum inputs, such as what types should be
planted and when to plant, and their post-harvest management. For chilli and
shallot commodities, it has the potential to continue to be developed and
provide benefits to farmers. Star fruit plants in this case have the prospect of
cash crops that provide maximum profits. Therefore in the future, it needs
support and facilities from the local government to help farmers in terms of
credit, provision of production facilities and better marketing infrastructure.
The advantage, short planting duration and in accordance with market
demand are the reasons for farmers to choose to grow vegetables. Sales of
vegetables are carried out by farmers directly after harvest to collectors /
dealers and to the market. The marketing system, market reach and price of
horticultural commodities from the study area are determined based on the
type of vegetables, market prices and quality
3.2 Recomendations
Seeing the potential of eucalyptus plants that have high use and economic
value, Indonesia as a country supplying essential oils from eucalyptus can
implement regulations that emphasize restrictions on imports of essential oil
products and further encourage the manufacture of products made from
essential oils derived from eucalyptus.

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