Implementation and Financial Analysis of Good Agricultural Practices (GAPs) of True Cardamom (Amomum compactum SoL.): The Experience from Smallholders Farmers AW Abadi, Sujianto Sujianto and H Miftah
1 Djuanda University, Jagorawi Toll Rd No.1, Ciawi, Bogor Regency, West Java 16720
2 Research group of Agricultural Policy and Innovation System. Research Center for Macroeconomics and Finance, National Research and Innovation Agency, Jakarta, Indonesia
Abstract
True cardamom is a biopharmaceutical plant used for the basic ingredients of traditional medicines, spices, additive, and herbs in various industries. For producing good quality and productivity, farmers should adopt Good Agricultural Practices (GAP) which can lead increasing cultivation cost. It is important to evaluate the implementation GAP and the financial aspect to see its feasibility. This study aims to assess the level of application of GAP, and its financial analysis based on adoption. Respondents were taken using the Cluster Random Sampling method, which determined as many as 43 farmers in Cisolok District. Based on the level of implementation of True cardamom^s GAP, the farmers are categorized as high, medium and low adoption with precentage 25%, 75%, and 0%, respectively. The results of the financial analysis of Net Present Value (NPV) of high-category farmers and medium-category are IDR 88,603,622.39 and IDR. 31,879,670.82, respectively. The high-category GAP adoption has a higher value of Net Benefit-Cost Ratio than the others, medium-category, 4.5 and 2.4, respectively. So do the Internal Rate of Return (IRR) values, high-category has a IRR value greater than the other which the IRR is higher than the interest rate (11%). Cardamom business is declared financially feasible with a payback period at the level of application of GAP for high and medium categories are 2 years 2 months and 5 years 6 months, respectively.
Keywords: Good Agricultural Practices, Financial Feasibility, true cardamom, farmers
