Assessing Production and Income Risks in Oil Palm Farming and Farmers’ Mitigation Strategies in Puriala of Southeast Sulawesi

Abstract

The objective of this research is to ascertain the magnitude of production and income risks encountered by smallholder oil palm farmers, as well as the strategies necessary for these farmers to overcome or mitigate these risks. The study was conducted in Puriala Village, Puriala Subdistrict, Konawe District, Southeast Sulawesi. The sampling technique utilized was census method. The research spanned from November 2022 to June 2023. The determination of respondents was also carried out using the Non-Probability Sampling method, involving a total of 20 farmers engaged in cultivating and producing oil palm. Data analysis methods included income analysis, coefficient of variation (CV) analysis, and descriptive analysis. The findings of this study reveal that the average income of farmers in Puriala Village is Rp 934,010 per hectare per month. The production risk, indicated by a Coefficient of Variation (CV) value of 0.225, and the income risk, with a CV value of 0.26, suggest that oil palm farming in Puriala Village carries low production and income risks.