Study on liability and farm handling of high value agricultural commodities in Aceh

Abstract

Agricultural sector has a potential for improving the economy of Aceh because it plays major role in the commodities livelihood. Some of the agricultural commodities such as patchouli, melon, chili, corn, and soybeans have high economic value. However, growing that plants have high uncertainty for farmers especially in term of risk in financial, production and market. This study aimed to identify the sources of risks and study the impact on farm management. The research was conducted in 75 villages in 5 districts of Aceh Province that were determined using systematic sampling. As many as 275 farmers had been selected as respondence risks of some aspects in production, marketing and financing were assessed and compared with potential benefit of farmers. The results indicated that potential benefit is always associated with the risk. The greater the on-farm risk is the bigger its potential benefits. Intensive farming system will reduce the risk, but it increases the cost. This research has been successfully ranking the risk of farming as the following plant: Patchouli, chilies, corn, and soybeans.