Preservation of Environment of Organic Farming of Dragon Fruit: Valuation Economic and Simulation of Policy

Kustiawati Ningsih(1), Halimatus Sakdiyah(2), Herman Felani(3), Rini Dwiastuti(4), Rosihan Asmara(5),
(1) Madura Islamic University, Indonesia
(2) Universitas Islam Madura, Pamekasan, Indonesia, Indonesia
(3) Universitas Islam Madura, Pamekasan, Indonesia, Indonesia
(4) Universitas Brawijaya, Malang, Indonesia, Indonesia
(5) Universitas Brawijaya, Malang, Indonesia, Indonesia

Abstract


Organic agriculture is the implementation of the sustainable agriculture concept promoted by the World Food Organization (WHO) since 1989. Later, this concept become a global movement for sustainable agriculture (Suryana, 2005). In its development, organic farming of dragon fruit tends to decrease its sustainability. The main contributing factors is natural and environmental degradation phenomena. This study aims to analyze the NPV of corn farming activities, which incidentally are farming activities outside organic dragon fruit farming, by comparing to the NPV of corn farming activities and organic dragon fruit farming NPV and conducting sensitivity analysis toward the benefits and social costs of the dragon-fruit organic farming environment. The analytical method used is cost-benefit analysis. The results showed that there are differences in the value of benefits and costs between corn farming and organic dragon fruit farming. The difference between the benefits and costs, NPV and BCR between corn farming and organic dragon fruit farming occurred because organic dragon fruit farming considers the value of social benefits and social costs, which includes elements of benefits and environmental costs while corn farming does not. Likewise, sensitivity analysis with a 10% increase in costs and a 5% decrease in benefits indicates that the NPV and BCR values are still positive. This shows that both types of farming found in the organic farming environment of dragon fruit are feasible to be developed so that they can maintain their existence for future generations and realize organic farming preservation of dragon fruit.

Keywords


preservation, organic farming, cost benefit

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DOI: https://doi.org/10.31186/jagrisep.18.1.89-106

URN: http://nbn-resolving.de/urn:nbn:de:0001jagrisep.18.1.87-1045

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