Economic Feasibility And Break-Even Analysis Of Smallholder Maize Farming In South Aceh, Indonesia

Khairun Nisa; Yulia Windi Tanjung; Liston Siringo Ringo; Zakki Muhtaram; Misna Dewi; Mukhlis

doi:10.63922/ijebir.v5i04.4058

Khairun Nisa Agribusiness Study Program, Faculty of Agriculture, Universitas Teuku Umar, Meulaboh, Indonesia
Yulia Windi Tanjung Agribusiness Study Program, Faculty of Agriculture, Universitas Teuku Umar, Meulaboh, Indonesia
Liston Siringo Ringo Agribusiness Study Program, Faculty of Agriculture, Universitas Teuku Umar, Meulaboh, Indonesia
Zakki Muhtaram Agribusiness Study Program, Faculty of Agriculture, Universitas Teuku Umar, Meulaboh, Indonesia
Misna Dewi Agribusiness Study Program, Faculty of Agriculture, Universitas Teuku Umar, Meulaboh, Indonesia
Mukhlis Agribusiness Study Program, Department of Agriculture Business, Politeknik Pertanian Negeri Payakumbuh, Lima Puluh Kota, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i04.4058

Keywords: break-even point, farm feasibility, farm income, maize, revenue-cost ratio

Abstract

Maize is a strategic food crop and an important source of farm household income in rural agricultural areas. However, maize farmers in Lhok Raya Village, Trumon Tengah District, South Aceh Regency face unstable output prices, limited farm financial records, and production risks caused by field conditions. This study aimed to analyze maize farming income, business feasibility based on the revenue-cost ratio, and break-even points for price and production. The research was conducted in Lhok Raya Village from July to August 2024. The location was selected purposively because maize farming is one of the main agricultural activities in the village. A quantitative descriptive approach was used. The sample consisted of 37 maize farmers selected through a census technique. Primary data were collected through field observation, structured interviews, questionnaires, and documentation, while secondary data were obtained from relevant institutions and literature. Data were analyzed using total cost, total revenue, farm income, R/C ratio, break-even price, and break-even production formulas. The results showed that average maize production was 4,144 kg/ha with an average selling price of IDR 4,900/kg. Average revenue reached IDR 13,011,496/ha, while total production cost used in the income and break-even analysis was IDR 3,110,065/ha. Therefore, average farm income was IDR 9,901,431/ha. The recalculated R/C ratio was 4.18, indicating that maize farming was economically feasible and profitable. The break-even price was IDR 750.4/kg, and break-even production was 634.7 kg/ha, both substantially below the actual selling price and production level. These findings indicate that maize farming in Lhok Raya Village remains financially viable, but farmers need stronger cost recording, production planning, and price-risk management to maintain profitability.

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