Economic Analysis of Income of Smallholder Oil Palm Farming In Asahan Regency of North Sumatra
DOI:
https://doi.org/10.38035/gijea.v4i4.1157Keywords:
Income, Oil Palm Farming, Smallholder EconomicAbstract
Asahan Regency is a major oil palm production center in North Sumatra Province, showing a continuous increase in planted area and production that significantly shapes the regional agricultural economy. This study aims to analyze farm income of smallholder oil palm farming in Asahan Regency. The research was conducted purposively across three sub-districts, utilizing a multistage sampling method combined with proportional quota sampling to select 130 respondents. The economic results showed that smallholder oil palm farming is highly profitable, with an average net income of IDR 143,907,718 per year. To optimize regional economic growth and farmers' welfare, local governments should implement price controls on agricultural inputs and strengthen credit access to lower production costs.
References
Adam, B., and Sadimantara, F. N. (2022). Analisis Pendapatan Usahatani Hortikultura HOLTIKULTURA (Studi Kasus Agrowisata Awila Hills Kecamatan Molowe Kabupaten Konawe Utara). Jurnal Ilmiah Inovasi Dan KomunikasiPembangunan Pertanian 1, 44–52.
Badan Pusat Statistik (BPS) Kabupaten Asahan. (2020). Laporan Tahunan Produksi Kelapa Sawit di Kabupaten Asahan. BPS Asahan.
Badan Pusat Statistik Kabupaten Asahan. (2025). Kabupaten Asahan Dalam Angka 2025. Kisaran: BPS Kabupaten Asahan.
Basri, N. M., Karim, Z. A., and Sulaiman, N. (2020). The effects of factors of production shocks on labor productivity: new evidence using panel var analysis. Sustainability 12:8645.
Bhamare, D. M. A. (2023). Optimizing Crop Selection and Production Planning in Agriculture: Applications of Linear Programming for Profit Maximization and Sustainability. International Journal of Research Publication and Reviews, 4(6), 3281-3287.
Budi Setiawan, A., and Inayati, C. (2020). The analysis of production factors and income of potato farming. Jejak (J. Econ. Policy) 13, 17–29.
Chen, M. (2025). Insights into optimizing cultivation practices for enhanced yield and quality in fresh-eating maize. Bioscience Methods, 16.
Deming, J., Kinsella, J., O'Brien, B., & Shalloo, L. (2019). An examination of the effects of labor efficiency on the profitability of grass-based, seasonal-calving dairy farms. Journal of Dairy Science, 102(9), 8431-8440.
Febriyanto, R., Sukmawati, D., & Gantini, T. (2024). Factors Affecting Coffee Seed Farming Production (Coffea arabica L.) and Its Implications for Income. Journal of Innovation and Research in Agriculture, 3(2), 97–107. https://doi.org/10.56916/jira.v3i2.1004
Gaviglio, A., Filippini, R., Madau, F. A., Marescotti, M. E., & Demartini, E. (2021). Technical efficiency and productivity of farms: a periurban case study analysis. Agricultural and Food Economics, 9(1), 11.
Hair, J. F., Anderson, R. E., Babin, B. J. & Black, W. C. (2021). Multivariate data analysis: A global perspective (9th ed.). Pearson.
Hu, Y., & Liu, Y. (2024). Impact of fertilizer and pesticide reductions on land use in China based on crop-land integrated model. Land Use Policy, 141, 107155.
Hutabarat, S., & Siregar, P. (2018). Dampak Dukungan Pemerintah Terhadap Kinerja Usahatani Kelapa Sawit Rakyat di Indonesia. Jurnal Sosial Ekonomi Pertanian, 10(2), 101-110.
Hutajulu, P. O., Chalil, D., & Sembiring, S. A. (2019). Efficiency and Marketing Margins Estimation of Oil Palm’s Fresh Fruit Bunches (FFB) in Labuhanbatu Utara and Asahan Regency. Indonesian Journal of Agricultural Research, 2(2), 67–76.
Kasmir dan Jakfar.2003. Studi Kelayakan Bisnis. Predana Media Grup, Jakarta.
Kurniati, S. A., and Sisca, V. (2020). Pengaruh Karakteristik Petani Dan Kompetensi Terhadap Kinerja Petani Padi Sawah Di Kecamatan Gunung Toar Kabupaten KuantanSingingi. Jurnal Agribisnis, 22, 82–94
Lidyana, N., and Sulistiyowati, R. (2022). Analisis Faktor-Faktor Produksi yang Mempengaruhi Pendapatan Petani Pada Usahatani Kentang Varietas Granola Di Probolinggo. Manajemen Agribisnis: Jurnal Agribisnis 22, 171–181.
Manope, B. F., Kindangen, P., & Tawas, H. (2014). Analisa kelayakan usaha komoditas biji dan fuli pala melalui penilaian aspek finansial pada pedagang pengumpul “Kios Chandra” di Pulau Siau. Jurnal EMBA, 2(4), 320-330.
Mihi-Ramirez, A., Melchor-Ferrer, E., and Garcia-Rodriguez, Y. (2022). Why do regions differ in growth? The productivity of the eurozone and its contribution to the added value of its European neighbors. Sustainability 14:11467.
Nakachew, K., Yigermal, H., Assefa, F., Gelaye, Y., & Ali, S. (2024). Review on enhancing the efficiency of fertilizer utilization: Strategies for optimal nutrient management. Open Agriculture, 9(1), 20220356.
Ojobor, S. A., Ossai, C. O., Muhasa, C., Onoja, M. O., Akpeji, S. C., Obiazi, C. C., & Ossai, N. F. (2026). Good Agronomic Practices and Pest Management Strategies for Enhanced Coffee Arabica Production: Reviews and Recommendations. Journal of Agricultural Sciences, 32(1), 19-29.
Peng, J., Zhao, Z., & Liu, D. (2022). Impact of agricultural mechanization on agricultural production, income, and mechanism: evidence from Hubei province, China. Frontiers in Environmental Science, 10, 838686.
Pratiwi, D. A., Maryam, S., & Balkis, S. (2020). Analisis Pendapatan Usahatani Kelapa Sawit (Elaeis guineensis Jacq.) di Kecamatan Waru Kabupaten Penajam Paser Utara. Jurnal Agribisnis dan Komunikasi Pertanian (Journal of Agribusiness and Agricultural Communication), 3(1), 9–16.
Purwanto, A. (2020). Analisis Efisiensi dan Produktivitas Usahatani Kelapa Sawit di Sumatera Utara. Jurnal Agribisnis, 15(2), 112-121.
Rahmani, T., Nurrochmat, D., Hero, Y., Park, M., Boer, R., & Satria, A. (2021). Evaluating the feasibility of oil palm agroforestry in Harapan Rainforest, Jambi, Indonesia. Forest and Society, 5(2), 458-477.
Ritonga, M. T. G. 2000. Pengetahuan Sosial Ekonomi. Erlangga. Jakarta.
Safira, S., and Juliansyah, H. (2019). Pengaruh Modal Dan Tenaga Kerja Terhadap Produksi Air Minum Dalam Kemasan (Amdk) Pada Pt. Ima Montaz Sejahtera Kota Lhokseumawe. Jurnal Ekonomi Pertanian Unimal 2, 65–73.
Salim, M. N., Susilastuti, D., and Setyowati, R. (2019). Analisis Produktivitas Penggunaan Tenaga Kerja Pada Usahatani Kentang. Jurnal Ilmu Pertanian 12, 1–16.
Siaw, A., Jiang, Y., Twumasi, M. A., Agbenyo, W., Ntim-Amo, G., Danquah, F. O., et al. (2021). The ripple effect of credit accessibility on the technical efficiency of maizefarmers in Ghana. Agricult. Fin. Rev. 81, 189–203.
Siregar, T., Nasution, D., & Simanjuntak, A. (2021). Kelayakan Finansial Usahatani Kelapa Sawit Rakyat di Kabupaten Asahan. Jurnal Ekonomi Pertanian, 18(1), 45-53.
Thakur, N., Thakur, N., Verma, H., & Klate, A. (2024). Value chain analysis and optimization in agribusiness. In Agribusiness Management (pp. 68-84). Routledge.
Tom, C. N., Edet, J. A., Erokare, T. E., Umunna, M. F., Igbozulike, A. O., & Udenze, N. (2024). Precision agriculture for maximizing crop production. IRE Journals, 8(2), 384-392.
Wake, R. D., Yami, M., & Bekele, A. (2019). Analysis of Production Efficiency, Productivity Variances and Resource Allocation among Smallholder Farmers of Soybean Producers: Evidence from Benishangul-Gumuz Region Ethiopia. International Journal of Research Studies in Agricultural Sciences, 5(7), 18-36.
Xin, L. (2022). Chemical fertilizer rate, use efficiency and reduction of cereal crops in China, 1998–2018. Journal of Geographical Sciences, 32(1), 65-78.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Deby Masri Camelia Panjaitan, Titik Ekowati, Migie Handayani
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright :
Authors who publish their manuscripts in this journal agree to the following conditions:
- Copyright in each article belongs to the author.
- The author acknowledges that the GIJEA has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
- Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJEA.
