Open AccessEconomic feasibility analysis of service business of agricultural equipment and machinery in Kubu Raya Regency, Indonesia
Author(s) -
. Ekawati,
Ellyta,
S. Sugiardi
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/637/1/012059
Subject(s) - business , agricultural machinery , agriculture , agricultural science , productivity , service (business) , benefit–cost ratio , tractor , sustainability , cropping , agricultural economics , agricultural engineering , operations management , engineering , environmental economics , production (economics) , marketing , economics , economic growth , net present value , environmental science , geography , ecology , biology , automotive engineering , macroeconomics , archaeology
Agricultural equipment and machinery have become the main farmer’s need as technically it can accelerate and improve the quality of soil cultivation, water supply, increase the cropping index, reduce lost yields and preserve the environmental functions. Economically, it can increase the added values through product processing, productivity, and resource efficiency. Institutional service business of agricultural equipment and machinery (UPJA) needs to develop to facilitate farmers’ access to the use of affordable agricultural equipment and machinery in order to increase the sustainable food production. The sustainability of the service business is influenced by many aspects including economic aspects. This study aimed to analyze financial feasibility of UPJA in Parit Keladi village, Sungai Kakap subdistrict, Kubu Raya Regency. Analysis of R/C ratio and B/C ratio was applied. Based on R/C ratio of feasibility analysis, all kinds of agricultural equipment and machinery including transplanter, water pump, rice thresher, mini combine harvester, and hand tractor provided by the service business were feasible, shown by R/C ratio> 1.52 and B/C ratio >0.52. Whereas, The R/C value of water pump of 2.5; hand tractor 2.0; 1.81 transplant machine and 1.67 mini combaine and 1.31 power thresher machine, respectively.