Methodology
Cost and Benefit Analysis
This paper will apply the cost and benefit analysis which is integrated with the externalities of the industry to
measure the following components
1. The profitability and sustainability of financial and environmental aspects of the small, medium and large
holder farmers in Johor. This is calculated by using a time frame of 25 years, the approximate equivalent of one
commercial cycle for oil palms).
2. The opportunity cost of small holders under a land settlement scheme, managed under the auspices of the
Federal Land Development Authority (FELDA). FELDA farmers are offered two options: to manage their own farms and meet their own costs; or to be fully managed by FELDA, in turn receiving a fixed monthly wage of
RM1200. The formula used for CBA is as follows