PROFITABILITY ANALYSIS OF RICE FARMING BASED ON IRRIGATION TECHNIQUE AT DESA OESAO, KECAMATAN KUPANG TIMUR, KABUPATEN KUPANG

Abstract

This study aims to describe the general condition of lowland rice farming and to analyze differences in profitability levels based on irrigation techniques in Oesao Village, East Kupang District, Kupang Regency. The research background shows that differences between irrigation and rainfed water-management systems cause variations in productivity, production costs, income, and farmer profitability. The study was conducted using a survey method involving 50 respondents, consisting of 25 farmers using an irrigation system and 25 farmers using a rainfed system. Data were analyzed using farm cost and revenue analysis, break-even point (BEP) analysis, and the calculation of the Marginal Income Ratio (MIR) and Margin of Safety (MOS). The results show that farmers using irrigation techniques had higher productivity and business efficiency than rainfed farmers. The average revenue of irrigated farmers reached Rp 31,000,000 per hectare, with total costs of Rp 13,670,000, resulting in income of Rp 17,330,000. In the rainfed system, revenue was Rp 24,000,000 with costs of Rp 12,000,000, generating income of Rp 12,000,000. Profitability was also higher in the irrigation system, with an MIR value of 65.5% and MOS of 55.9%, whereas the rainfed system had an MIR of 62.1% and MOS of 50.0%. The BEP results show that both systems were financially feasible; however, irrigation was more efficient because it had lower BEP production and BEP price values than the rainfed system.