Management model and feasibility of agroforestry practices in Sipolha Horison village, Simalungun regency, North Sumatra province, Indonesia

Abstract

Agroforestry is a deliberate combination of agriculture and forestry to create an integrated environment and sustainable land use system. This study aims to identify the form of agroforestry management and the financial feasibility of agroforestry in Sipolha Horison Village. The research method is descriptive analysis and financial analysis using NVP, BCR, and IRR parameters. The results showed that there were two agroforestry patterns commonly practiced by the people of Sipolha Horison Village, Pematang Sidamanik District, namely agroforestry pattern A (suren and coffee plants) and agroforestry pattern B (suren, coffee, and clove plants). The results of the analysis show that suren agroforestry produces an NPV value of Rp. 166,343,919, - per ha (at an interest rate of 8%), Rp. 126,566,124, 51 per ha (at an interest rate of 10%), and Rp. 73,322,098.68 per ha (at an interest rate of 14%). The BCR value with an interest rate of 8% is 4.29, at a 10% interest rate is 3.78, and at a 14% interest rate is 2.94, with an IRR value of 17.6%. Overall these results indicate that agroforestry practices in Sipolha Horison Village, Pematang Sidamanik District, Simalungun Regency are feasible to cultivate.