Farm Income (Profit)
Nominal profit or income from the wet land oil palm plantation was actually higher by 27.22% than that of
dry land planttion, although the FFB price was lower for about 13.24%. The higher FFB productivity (15,26%)
at the wet land oil palm plantations has contributed to that higher income (Table 3). However, the benefit to
cost ratio analysis showed the opposite situation, that is for every one rupiah spent in oil palm farming, the
farmer at dry land on average received net profit of 3.25 rupiah, slightly higher than that of receieved by wet
land farmers. This is due to the lower cost of production by 23.11 % at the dry land oil farm farming. High
proportion of labor and fertilizer costs at wet land farms contribute to the the higher total production cost of
wet land palm oil plantations compared to that of the dry land’s. It seems tha the labor cost should be reduced
more efficiently in the future. The benefit to cost ratio figures were consistent with the research results by
Husin (2011), but slightly below the better performance plantations which showing the B/C value between
3.38 – 3.98.
Farm Income (Profit)Nominal profit or income from the wet land oil palm plantation was actually higher by 27.22% than that ofdry land planttion, although the FFB price was lower for about 13.24%. The higher FFB productivity (15,26%)at the wet land oil palm plantations has contributed to that higher income (Table 3). However, the benefit tocost ratio analysis showed the opposite situation, that is for every one rupiah spent in oil palm farming, thefarmer at dry land on average received net profit of 3.25 rupiah, slightly higher than that of receieved by wetland farmers. This is due to the lower cost of production by 23.11 % at the dry land oil farm farming. Highproportion of labor and fertilizer costs at wet land farms contribute to the the higher total production cost ofwet land palm oil plantations compared to that of the dry land’s. It seems tha the labor cost should be reducedmore efficiently in the future. The benefit to cost ratio figures were consistent with the research results byHusin (2011), but slightly below the better performance plantations which showing the B/C value between3.38 – 3.98.
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