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The Social Sciences

Profitability Analysis of Small-Scale Farmers in Indonesia a Case Study of Hand Tractor use in Jember Regency
Fitri Candra Wardana, Naoyuki Yamamoto and Hideyuki Kano

Abstract: In this study, we analyze the constraints of hand tractor ownership and the profitability of small-scale farmers who use hand tractors in Jember Regency, Indonesia. Multistage purposive sampling was used to select 144 small-scale farmers from six districts in Jember Regency. The analysis of social characteristics shows that the main constraints impeding small-scale farmers from owning hand tractors are availability, skills, costs and land condition. The results of the profitability analysis show that small-scale farmers in the Jember Regency have lower labor costs of IDR 4,133,820/ha (USD 295), higher hand tractor costs of IDR 609,890/ha (USD 44) and higher income than the national standard of IDR 14,496,887/ha (USD 1,035). This indicates that hand tractor use results in an increase in the profitability of small-scale farmers by reducing production costs. The significant gross margin (83.7%) is evidence that small-scale farmers in the Jember Regency who use hand tractors for land preparation are more profitable than the national standard.

How to cite this article
Fitri Candra Wardana, Naoyuki Yamamoto and Hideyuki Kano, 2017. Profitability Analysis of Small-Scale Farmers in Indonesia a Case Study of Hand Tractor use in Jember Regency. The Social Sciences, 12: 2224-2229.

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