DOI: https://doi.org/10.14710/agrisocionomics.v9i1.21885

THE IMPACT OF FARMER GROUP MEMBERSHIP ON REVENUES, COSTS, AND INCOME GENERATED FROM CAYENNE PEPPER FARMING IN INDONESIA

*Adiva Fitri Khalishah Tjiptara Hardja  -  Agribusiness Department, Faculty of Economics and Management, IPB University, Bogor, West Java, Indonesia, Indonesia
Harmini Harmini  -  Agribusiness Department, Faculty of Economics and Management, IPB University, Bogor, West Java, Indonesia, Indonesia
Yanti Nuraeni Muflikh  -  Agribusiness Department, Faculty of Economics and Management, IPB University, Bogor, West Java, Indonesia, Indonesia
Open Access Copyright 2025 Agrisocionomics: Jurnal Sosial Ekonomi Pertanian under http://creativecommons.org/licenses/by-sa/4.0.

Citation Format:
Abstract

Cayenne pepper, a national strategic commodity, has fluctuating prices and production risks. As a result, the income of cayenne pepper farmers fluctuates. Farmer groups that function as learning classes, work platforms, and production units for farmers make few of the many efforts to deal with this issue. This study aims to (1) analyze the revenue, cost structure, and income of cayenne pepper farming among farmer group members and non-farmer group members in Indonesia, and (2) analyze the impact of farmer group membership on revenue and cost structure, and cayenne pepper farming income. The data used were secondary data from the 2014 Horticultural Crop Household Survey, with a total of 18.049 households. Data processing was performed qualitatively and quantitatively. Qualitative data analysis was performed using descriptive and quantitative methods using propensity score matching (PSM). The study results showed that farmers who are farmer group members have higher revenues, costs, and incomes than farmers who are not. Farmer groups membership impact on higher costs as well as significant positive effect towards farmer’s revenueion and income.

Fulltext View|Download
Keywords: cayenne pepper, farmer group, farmer’s income, propensity score matching

Article Metrics:

Article Info
Section: Articles
Language : EN
Recent articles
FINANCIAL MANAGEMENT IN VILLAGE AND AGRICULTURAL DEVELOPMENT DECIPHERING INCOME, PROFIT, AND THEIR DETERMINANTS OF ORGANIC AND CONVENTIONAL ROJOLELE RICE FARMING IN KLATEN REGENCY THE IMPACT OF FARMER GROUP MEMBERSHIP ON REVENUES, COSTS, AND INCOME GENERATED FROM CAYENNE PEPPER FARMING IN INDONESIA More recent articles
  1. Abdul-Rahaman, A., & Abdulai, A. (2018). Do farmer groups impact on farm yield and efficiency of smallholder farmers? Evidence from rice farmers in northern Ghana. Food Policy, 81, 95–105. https://doi.org/10.1016/j.foodpol.2018.10.007
  2. Amin, M., & Prihantini, C. I. (2021). Analisis Produksi dan Risiko Produksi Usahatani Cabai Rawit di Kecamatan Watunohu, Kabupaten Kolaka Utara. AGRIMOR, 6(1), 15–21. https://doi.org/10.32938/ag.v6i1.1199
  3. Aremu, P. A. (2019). Farmers’ Group Technique: An Efficient Tool for Agricultural Technology Transfer and Adoption. International Journal of Pure & Applied Bioscience, 7(4), 41–48. https://doi.org/10.18782/2320-7051.7510
  4. Aslidayanti. (2019). Peranan Kelompok Tani dalam Peningkatan Pendapatan Usahatani Cabai (Studi Kasus di Desa Abbatireng Kecamatan Gilireng Kabupaten Wajo). Jurnal Perbal, 7(1), 70–83. https://doi.org/http://dx.doi.org/10.30605/perbal.v7i1.1227
  5. Badan Penyuluhan dan Pengembangan Sumber Daya Manusia Pertanian. (2020). Data Statistik Penyuluhan Pertanian 2020
  6. Baga, L. M., Utami, A. D., & Wahyudi, A. F. (2023). Exploring the Relation between Farmer Group Membership and Agricultural Productivity: Evidence from Indonesian Rice Farming. AGRARIS: Journal of Agribusiness and Rural Development Research, 9(1), 65–78. https://doi.org/10.18196/agraris.v9i1.115
  7. BPS. (2019). Hasil Survei Pertanian Antar Sensus (Sutas) 2018
  8. BPS. (2022). Statistik Hortikultura 2021
  9. BPS Badan Pusat Statistik. (2023). Statistik Hortikultura 2022
  10. Farid, M., & Subekti, N. A. (2012). Tinjauan terhadap Produksi, Konsumsi, Distribusi dan Dinamika Harga Cabe di Indonesia. Buletin Ilmiah Litbang Perdagangan, 6(2), 211–234
  11. Farida, F., Siregar, H., Nuryartono, N., & Intan, E. K. (2016). An Impact Estimator Using Propensity Score Matching: People’s Business Credit Program to Micro Entrepreneurs in Indonesia. Econ. Rev, 20(4), 599–615. https://doi.org/10.22059/ier.2016.59612
  12. Fazlurrahman, T. (2012). Pendapatan Usahatani Cabai Rawit Merah (Capsicum frutescens) Petani Mitra PT. Indofood Fritolay Makmur dan Petani Nonmitra di Desa Cigedug Kecamatan Cigedug Kabubaten Garut [Skripsi]. Institut Pertanian Bogor
  13. Gumelar, A. I., Dewi, R. S., & Nida, Q. (2023). The Active Role of Farmer Groups in Improving the Economy of Dam Village Communities. AURELIA: Jurnal Penelitian Dan Pengabdian Masyarakat Indonesia, 2(2), 803–809. https://doi.org/10.57235/aurelia.v2i2.763
  14. Hendrisetiawan, L. (2022). Perbedaan Pendapatan Usahatani Bawang Putih di Musim Kemarau dan Musim Hujan [Skripsi]. Institut Pertanian Bogor
  15. Hernanto, F. (2018). Ilmu Usahatani. Penebar Swadaya
  16. Himawan, Z. R., & Puryantoro, P. (2019). Analisis Faktor Faktor yang Mempengaruhi Harga Cabai Rawit di Pasar Besuki (Studi Kasus di Desa Besuki Kecamatan Besuki Kabupaten Situbondo). AGRIBIOS, 17(1), 7–14. https://doi.org/10.36841/agribios.v17i1.880
  17. Hoken, H., & Su, Q. (2018). Measuring the effect of agricultural cooperatives on household income: Case study of a rice‐producing cooperative in China. Agribusiness, 34(4), 831–846. https://doi.org/10.1002/agr.21554
  18. Jono, S. K. (2023). Faktor yang Memengaruhi Keputusan Petani mengambil Kredit dan Dampaknya terhadap Kinerja Usahatani Cabai Merah di Indonesia [Tesis]. Institut Pertanian Bogor
  19. Khan, M. T. I., Ali, Q., Ashfaq, M., & Waseem, M. (2017). Economic analysis of open field chilli (Capsicum annuum L.) production in Punjab, Pakistan. Journal of Experimental Biology and Agricultural Sciences, 5(1), 120–125. https://doi.org/10.18006/2017.5(1).120.125
  20. Khandker, S. R., Koolwal, G. B., & Samad, H. A. (2010). Handbook on Impact Evaluation: Quantitative Methods and Practices. The World Bank. https://doi.org/10.1596/978-0-8213-8028-4
  21. Kumar, A., Saroj, S., Joshi, P. K., & Takeshima, H. (2018). Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India. Food Policy, 75, 24–36. https://doi.org/10.1016/j.foodpol.2018.01.005
  22. Mandarsari, A., Anindita, R., & Budi, S. (2020). Price volatility analysis of cayenne pepper (Capsicum frutescens) in East Java. Agricultural Social Economic Journal, 20(2), 129–136. https://doi.org/10.21776/ub.agrise.2020.020.2.5
  23. Michalek, J., Ciaian, P., & Pokrivcak, J. (2018). The impact of producer organizations on farm performance: The case study of large farms from Slovakia☆. Food Policy, 75, 80–92. https://doi.org/10.1016/j.foodpol.2017.12.009
  24. Mojo, D., Fischer, C., & Degefa, T. (2017). The determinants and economic impacts of membership in coffee farmer cooperatives: recent evidence from rural Ethiopia. Journal of Rural Studies, 50, 84–94. https://doi.org/10.1016/j.jrurstud.2016.12.010
  25. Muflikh, Y. N., Smith, C., Brown, C., & Aziz, A. A. (2021). Analysing price volatility in agricultural value chains using systems thinking: A case study of the Indonesian chilli value chain. Agricultural Systems, 192, 103–179. https://doi.org/10.1016/j.agsy.2021.103179
  26. Nelvi, Y., Helmayuni, H., Mahmud, M., Afrini, D., Firnando, E., Mardianto, M., & Harissatria, H. (2023). The Role of Farmer Groups in Improving Farmer Welfare as a Business Group in Nagari Aripan, X Koto Singkarak District, Solok Regency. Baselang, 3(2), 137–145. https://doi.org/10.36355/bsl.v3i2.109
  27. Novita Ba’isyah, D., Soedarto, T., & Wahyuning Laily, D. (2024). Analysis Production of Cayenne Pepper Farming in Brondong District Lamongan Regency East Java Indonesia. Journal Of Economics, Finance and Management Studies, 07(01). https://doi.org/10.47191/jefms/v7-i1-08
  28. Olagunju, K. O., Ogunniyi, A. I., Oyetunde-Usman, Z., Omotayo, A. O., & Awotide, B. A. (2021). Does agricultural cooperative membership impact technical efficiency of maize production in Nigeria: An analysis correcting for biases from observed and unobserved attributes. PLOS ONE, 16(1), e0245426. https://doi.org/10.1371/journal.pone.0245426
  29. Othman, M. S., Oughton, E., & Garrod, G. (2020). Significance of farming groups for resource access and livelihood improvement of rural smallholder women farmers. Development in Practice, 30(5), 586–598. https://doi.org/10.1080/09614524.2020.1764502
  30. Government Regulation, P. (2020). Peraturan Pemerintah [PP] No. 81 Tahun 2020 tentang Pembiayaan Usaha Tani. In Peraturan Pemerintah (81). LN.2020/No.308, TLN No.6608, jdih.setkab.go.id : 13 hlm
  31. Prasada, I. Y., Nugroho, A. D., & Lakner, Z. (2022). Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union. Forest Policy and Economics, 144, 102848. https://doi.org/10.1016/j.forpol.2022.102848
  32. Prasetyo, Y., Puryantoro, P., & Suryaningsih, Y. (2023). Analisis faktor yang mempengaruhi produksi dan efisiensi alokatif cabai rawit merah di Kecamatan Banyuputih Kabupaten Situbondo. Mimbar Agribisnis: Jurnal Pemikiran Masyarakat Ilmiah Berwawasan Agribisnis, 9(2), 2431. https://doi.org/10.25157/ma.v9i2.10412
  33. Rosenbaum, P. R., & Rubin, D. B. (1984). Reducing Bias in Observational Studies Using Subclassification on the Propensity Score. J. Am. Stat. Assoc, 79(387), 516–524. https://doi.org/10.1080/01621459.1984.10478078
  34. Sari, I., Yanti, N. D., & Hidayat, T. (2019). Faktor-faktor yang Mempengaruhi Usahatani Cabai Rawit (Capsicum fretescens L.) di Kabupaten Tabalong. Frontier Agribisnis, 3(4), 23–30. https://doi.org/https://doi.org/10.20527/frontbiz.v3i4.1937
  35. Soekartawi. (1995). Analisis Usahatani. UI-Press
  36. Soekartawi, Soeharjo, A., Dillon, J. L., & Hardaker J B. (1986). Ilmu Usahatani. UI-Press
  37. Subastian, R., & Yuliawati, Y. (2024). Analisis Pendapatan Usahatani Cabai Rawit Merah di Kecamatan Ngablak Kabupaten Magelang. Jurnal Agribisnis Indonesia, 12(1), 131–139. https://doi.org/10.29244/jai.2024.12.1.131-139
  38. Constitution of the Republic of Indonesia, U. (2013). Undang-undang [UU] No. 19 Tahun 2013 tentang Perlindungan dan Pemberdayaan Petani (19). LN.2013/No. 131, TLN No. 5433, LL SETNEG: 39 HLM
  39. Wossen, T., Abdoulaye, T., Alene, A., Haile, M. G., Feleke, S., Olanrewaju, A., & Manyong, V. (2017). Impacts of extension access and cooperative membership on technology adoption and household welfare. Journal of Rural Studies, 54, 223–233. https://doi.org/10.1016/j.jrurstud.2017.06.022

Last update:

No citation recorded.

Last update:

No citation recorded.