Factors Affecting the Production Risk of Organic Rice in Kulonprogo Regency, Special Region of Yogyakarta, Indonesia

¹ Department of Agribusiness, Faculty of Agricultura, Universitas Muhammadiyah Yogyakarta, Indonesia
² Department of Marketing, Faculty Business and Science Management, Kolej Universiti Islam Perlis, Malaysia

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

Abstract

The organic farming system is an all-natural agricultural system without chemical substances. However, the organic farming system should consider several concerning factors, particularly the chosen fertilizer. Since organic fertilizers are low in nutrients, they must be used in greater amounts. Similarly, using plant-based insecticides for pests and disease control can be quite slow. The present study analyzes the levels and factors affecting organic rice farming production risk. The research was conducted in Kulonprogo Regency as a pioneer of organic farming with certified farmer groups from the Organic Certification Institute. The data collection uses a census approach; all members of the farmer groups, totaling 88 farmers, were the research respondents. The level of production risk of organic rice is analyzed using the Coefficient of Variation model (CV). Meanwhile, the factors affecting the production risk of organic rice are evaluated using the production function of Just and Pope’s production risk model and Cobb-Douglas’s natural logarithmic form. The production risk of organic rice for farmers with owned and non-owned land is in the low category. Meanwhile, land area and status can affect the production risk of organic rice. The wider land employed for organic rice farming, the greater the production risk. Farmers in Kulonprogo Regency should continue to use organic rice farming because the production risk is low.