Feasibility of water apple farming in Demak Regency

Department of Agribusiness, Universitas Muhammadiyah Yogyakarta, Bantul, Daerah Istimewa Yogyakarta, Indonesia

^* Corresponding author: rahma_wati_mf@umy.ac.id

Abstract

The development of water apple in Demak Regency has spread in all sub-districts. In addition to varying land areas, water apple productivity in each sub-district also varies from low to high. This could also be due to changes in the dry climate, which are longer than usual. This study aims at determining the investment costs, operational costs, benefits, and feasibility of water apple farming in Demak Regency. The research method used is descriptive analysis. Samples were determined purposively as many as 25 farmers from the existing population based on the age of the water apple plant. This study indicates that the investment cost used in the cultivation of water apple per 2000 m2 area is IDR 715,822,520, operating costs of IDR 814,209,869, and the resulting benefits of IDR 1,644,446,187. Water apple farming has a feasible category to run with a Net Present Value (NPV) of IDR 114,413,798; B/C of 1.15; Internal Rate of Return (IRR) of 7.20%; and Pay Back Period for 14.6 years. The potential of Demak district for water apple farming needs to be developed by rejuvenating it by the Standard Operating Procedures for water apple cultivation.