Production analysis of smallholding arabica coffee farm in the district of Solok, West Sumatra, Indonesia

Abstract

Economically and strategically, coffee plays a significant role in economic development. Coffee is one of the agricultural commodities planted and developed in the District of Solok, West Sumatera. Most of the coffee plantations in this district are small scale plantations (smallholdings) owned by farmers' families. To increase the positive economic impact in improving income, the farmers should optimize the utilization of production inputs. This study aims to examine the correlation between the characteristic of farmers and coffee production to investigate factors affecting coffee production and to analyze the return scale of smallholding Arabica coffee farms in the District of Solok. This research used a survey method, and the data were gathered from 60 coffee farmers in two sub-districts, namely the sub-district of Lembah Gumanti and sub strict of Pantai Cermin. The research finds that the characteristic of farmers that positively and significantly correlates to coffee production are age, land area, experience in farming, and education. Moreover, the statistical test shows that all variables were simultaneously affecting the output. However, partially only variables of the utilization of organic fertilizer, labor, and capital, which significantly affect the output. Furthermore, the study finds that smallholding Arabica coffee farms in the district of Solok are in the condition of Increasing Return to Scale, which means the production increases by a more substantial proportion than the increase in input production utilization.