Palm oil is claimed as being unsustainable in its production, prompting this study to explore the production of
palm oil within the specific context of environmental cost. CBA which integrated with environmental factors are
applied to growers in Johor. The findings are classified into groups, namely best, better and worse cases, with
the mean value of Net Present Value (NPV) and Benefit Cost Ration (BCR) of each group compared. The CBA
are conducted by adopting a 25 years of period and average interest rates of saving rates for the previous 24
years as a bechmark. Finding shows that the best case of productive farmer of FELDA scheme will earn RM 40,
943 more than unproductive farmers, equating to around 20 percent higher of income. The worse case studies
for small, medium and large holders (plantation segments apparently inefficient with negative NPV per hectare).
In the case of intra scale analysis, small holders in Johor are doing better than medium farm size in the case of
best case study.