Implementation of an agribusiness system to support rice farming performance in Grobogan, Indonesia

Abstract

Examining the implementation of an agribusiness system and its effect on rice farming performance in Grobogan is crucial for identifying challenges and opportunities to improve farmers’ productivity, efficiency and profitability. The findings of this analysis can serve as a foundation for developing suitable policies and programmes to support advancement of rice-farming in Grobogan. This study analysed agribusiness implementation, production, efficiency, profitability of rice farming. The research employs a survey method, selecting two districts, Wirosari and Godong and two villages from each district. Farmer samples were obtained through simple random sampling, with 20 samples from each village, resulting in a total of 80 samples. Data were analysed using agribusiness approach, multiple linear regression and the economic efficiency. The results indicated that agribusiness system had been implemented effectively with rice productivity reaching 75 quintals/ha, with an average land area of 0.77 ha. All the independent variables, land, seeds, urea fertiliser, triple superphosphate (TSP) fertiliser, pesticide, labour and agribusiness implementation significantly affected rice production. With an adjusted value of 0.968, the use of input factors was not yet efficient. The average income of rice farmers was Indonesian rupiah (IDR) 15172142/planting season with a profitability of 67.97 %, demonstrating that rice farming in Grobogan is continuing.