Economic aspects of soybean farming sustainability in Central Java, Indonesia

Abstract

Imbalances in supply and demand of agricultural commodities results in fluctuations in the prices of these commodities. High price fluctuations will have an impact on farmers' income and agricultural sustainability. This study aimed to determine the production performance and sustainability of soybean farming in Central Java, Indonesia. Survey studies were conducted in two areas which were purposively selected as the center of soybean production. A descriptive analysis was used to describe the condition of soybean farming sustainability. The results of the study showed that soybean price stability was low, indicating that soybean prices fluctuated with a coefficient of variation of 15.70%. Soybean farming income shows the positive R/C values in Grobogan and Wonogiri, namely 1.18 and 1.15, respectively. The profitability achieved was above the credit interest rate, demonstrating that soybean farming is still feasible. The percentage of the contribution to farm and household incomes is 37.77 and 18.87% respectively.