Determinants of Lowland Rice Farming Profitability in a Semi-Arid Agroecosystem: A Regression-Based SmartPLS Analysis of the Sejahtera Farmer Group in Noelbaki, Indonesia

Welly Jantika Tualaka; Tomycho Olviana; Yakobus C. W. Siubelan

doi:10.63922/ijebir.v5i06.6853

Welly Jantika Tualaka Student, Agribusiness Study Program, Faculty of Agriculture, Nusa Cendana University, Kupang, Indonesia
Tomycho Olviana Lecturer, Agribusiness Study Program, Faculty of Agriculture, Nusa Cendana University, Kupang, Indonesia
Yakobus C. W. Siubelan Lecturer, Agribusiness Study Program, Faculty of Agriculture, Nusa Cendana University, Kupang, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i06.6853

Keywords: farm profitability; lowland rice; R/C ratio; land area; labor efficiency; seed; fertilizer; SmartPLS; semi-arid agriculture

Abstract

Lowland rice farming in East Nusa Tenggara, Indonesia, operates within a semi-arid agroecosystem where rainfall variability, production costs, labor requirements, and access to farm inputs influence economic performance. This study analyzes the determinants of lowland rice farming profitability among all 60 members of the Sejahtera Farmer Group in Noelbaki Village, Kupang Regency. A quantitative census design was employed. Primary data were collected through questionnaires, interviews, and field observations, while secondary data were obtained from statistical and village-level sources. Farm profitability was represented by the revenue-cost ratio (R/C ratio), and the effects of land area, labor, seed, and fertilizer were evaluated using multiple linear regression implemented through the SmartPLS regression workflow. The respondents cultivated 125.42 ha and produced 1,051,700 kg of paddy during one production season. Total revenue reached IDR 11.175 billion, total production cost was IDR 802.067 million, and net farm income was IDR 10.373 billion. The average R/C ratio was 14.04 and the average B/C ratio was 13.04. The regression model produced R² = 0.613 and adjusted R² = 0.586 and was statistically significant (F = 22.596; p = 0.001). Land area had a positive and significant effect on profitability (coefficient = 5.822063; p = 0.001911), whereas labor had a negative and significant effect (coefficient = -0.000878; p = 0.003242). Seed use (p = 0.498795) and fertilizer use (p = 0.754051) were not statistically significant. The findings indicate that profitability in this semi-arid rice-farming system is more closely associated with farm scale and labor efficiency than with simply increasing seed and fertilizer quantities. Management-oriented extension, more efficient labor allocation, improved farm budgeting, and input use aligned with agronomic and economic requirements are therefore important for strengthening farm profitability.

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