FINANCIAL ANALYSIS OF RGL CITRUS IN THE DEVELOPMENT AREA IN REJANG LEBONG DISTRICT
Emlan Fauzi, Irma Calista, Hamdan, Wawan Eka Putra, Andi Ishak, Shannora Yuliasari, Yudi Sastro

Assessment Institute for Agricultural Technology of Bengkulu

Abstract

RGL citrus development must be able to provide financial benefits. The purpose of this study is to analyze the financial feasibility of RGL orange farming based on B / C values; NPV and IRR and analyze the sensitivity of RGL orange farming to changes in production costs, production prices and production quantities. The study was conducted from January to March 2020. Data collection was carried out by observation and interviews with 10 RGL orange farmers. The data collected is in the form of costs, costs and quantities of production. The results showed that the use of technology was still not fully following with the recommendations. The initial investment cost is IDR. 147,770,000 / ha and for subsequent maintenance an average of IDR. 28,776,375 / ha / year. The highest income is obtained when the plant is nine years old, that is IDR. 188,651,500 / ha / year. At an interest rate of 12%, the business value of RGL orange cultivation is feasible to run because it has met the criteria for investment eligibility (Net B / C value 1.96; NPV 341,682,430 and IRR 27.58%). At a time when prices and production volume decreased by 30%, RGL orange farming was still feasible despite a significant decrease in net benefits (Net B / C 1.42; NPV IDR.169.485.944, IRR 20.73% and Net B / C 1.14, NPV IDR.150,082,909, IRR 20.31%), while at the time of increasing production costs by 30% shows that there was no significant change in the RGL orange business (B / C 1.74; NPV IDR. 303,891,977 and IRR 25.93%). The RGL orange business is sensitive to changes in prices (falling prices) and production (decreases in production) and less sensitive to changes in increased production costs.

Keywords: Key Word: Citrus, B/C, NPV, IRR

Topic: AGRICULTURAL PRODUCT TECHNOLOGY