Analysis of Citra Water Apple Business in Hamlet II Paya Salit

Village, Pulau Semikat, Langkat District

Julia Marisa

and Ismail Dahlan

University of Pembangunan Panca Budi Medan

Keywords: Business Analysis, Citra Water Apple, Revenue Cost Ratio.

Abstract: This study aims to identify the cultivation technique of citra water apple farming system, to determine the

production cost component in the farming system, and to analyze the feasibility of the citra water apple

farming system. The analytical method used is descriptive quantitative analysis that researchers describe the

condition variables: revenue volume businesses citra water apple cultivation in Hamlet II Paya Salit Village,

Pulau Semikat, Langkat District. To determine the cost of the components can be seen by analyzing the

feasibility citra water apple using a calculation Analysis of Acceptance and Expense Balance (R/C Ratio) and

Break Even Point (BEP) with descriptive analysis method is direct interview to farmers in the study site.

Respondents in this study are all existing citra water apple farmers in Hamlet II Paya Salit Village, Pulau

Semikat, Langkat District. The samples were 25 families using Simple random sampling method. The result

of this research shows that the citra water apple farming system in the research area is economically beneficial

for the farmers which is 11,557,027 rupiah and from the business feasibility aspect is the type of activity that

is feasible to be cultivated and developed because the value of Revenue Cost Ratio is 1.66.

1 INTRODUCTION

Citra water apple farming is much in demand by

farmers as a livelihood which is a source of farmer

income. The prospect of farmers working on citra

water apple farming can increase farmers' income. It

can also increase the nutritional value of food.

Because citra water apple contains many proteins,

carbohydrates, fats, vitamin A, and vitamin C is good

for the health of the body.

Farmers in the implementation of farming has

a goal that is how farming is done will be able to

provide benefits by using resources well-owned in

order to obtain high income so as to meet daily needs.

Therefore, analysis of citra water apple farming

system needs to be done by farmers in implementing

their farming in order to know the amount of income.

2 RESEARCH METHODS

2.1 Research Procedure

The design of this study was first performed by

observing to study the problems or difficulties that

arise. The results of the observations then made

scenarios that support and create a flow problem. The

second stage is the stage of data analysis by analyzing

the costs of production and business acceptance with

the income analysis approach. Then analyzing the

breakeven point of the cashew water business with

the Break Even Point (BEP) analysis approach in

terms of both price and production, then analyzed the

feasibility of the business. The third stage is the

interpretation of the data by interpreting the results of

the predictive values of each variable and comparing

it with previous theories and research results.

Interpretations may prove the theory, opposed to

theory and developed a new theory as a reference on

the research results. The next stage is to draw

conclusions, which this stage to conclude the results

achieved and recommend to the relevant parties.

222

Marisa, J. and Dahlan, I.

Analysis of Citra Water Apple Business in Hamlet II Paya Salit Village, Pulau Semikat, Langkat District.

DOI: 10.5220/0010040902220229

In Proceedings of the 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and Technology (ICEST 2018), pages 222-229

ISBN: 978-989-758-496-1

Figure 1.

2.2 Parameters Observed

Parameters observed in this study include: farmer

family data, data analysis of citra water apple farming

system consisting of variable costs, fixed costs and

income and feasibility of the farming.

2.3 Type and Scope of Research

The type of this research is descriptive quantitative

research that is the researcher who describes the

variable condition that is the amount of income

obtained by the citra water apple business actor and

the feasibility of the business.

The scope of this research is in Hamlet II Paya

Salit Village, Pulau Semikat, Langkat District. The

method used in this study were interviews to farmers

citra water apple by using a questionnaire that had

been made in advance. The research location is taken

purposively (intentionally) on the basis that one of the

areas that have great potential in the development of

farming, especially citra water apple, in addition to

the scale of farming citra water apple is owned by

local farmers relatife a lot.

2.4 Data Collection Technique

Data collection conducted in this research are:

1. Observation, which is a direct observation of

the citra water apple farming system in

Hamlet II Paya Salit Village, Pulau Semikat,

Langkat District.

2. Questionnaires and interviews, the retrieval

of data by dividing the questionnaire or a list

of questions to the farmers as well as

communicate directly with respondents to

obtain the necessary data.

2.5 Population and Sample

Population in this research is all farmer of jambu air

citra that exist in Hamlet II Paya Salit Desa Semikat

Island Sirapit District of Langkat Regency. The

number of population as many as 45 families and the

number of samples in the set as many as 25 families

using Simple random sampling method, where the

sample characteristics are homogeneous, the

treatment in the farm and the variables will be

examined the same. It is the same with Bailey's theory

that states for research using statistical analysis, the

minimum sample size of 30 (Hassan, 2002).

2.6 Data Analysis Method

Analysis of the data used to determine the income of

citra water apple are:

Π = TR – TC (1)

TR = Py. Y (2)

TC = FC + VC (3)

Explanation:

Π : The level of income or profit in the citra water

apple business n Hamlet II Paya Salit Village,

Pulau Semikat, Langkat District.

TR : Total business revenue

TC : Total cost

FC : Fixed cost

VC : Variable cost

Y : Production obtained in a business

Py : Price Y

Analysis of Acceptance and Expense Balance (R/C

Ratio). To view the relative advantages citra water

apple business is done by calculating the value of the

balance between revenue and costs. The balance

value is derived from the ratio of the total acceptance

of the fee or can be derived from the ratio of

acceptance of cash costs. The value of a counter can

be calculated by:

𝑅

𝐶𝑅𝑎𝑡𝑖𝑜



𝑇𝑜𝑡𝑎𝑙𝑅𝑒𝑣𝑒𝑛𝑢𝑒

𝑇𝑜𝑡𝑎𝑙𝐶𝑜𝑠𝑡

(4)

By criteria ::

1. RCR > 1 : feasible (profitable).

2. RCR = 1 : break even point.

3. RCR < 1 : not feasible (unprofitable)

Analysis of Citra Water Apple Business in Hamlet II Paya Salit Village, Pulau Semikat, Langkat District

223

3 RESULTS AND DISCUSSION

3.1 Research Result

3.1.1 Farmers Characteristics of

Respondent Farmer's Age

The respondents were aged between 23-60 years old.

Distribution of respondents by age and percentage

can be seen in Table 1.

Table 1. Distribution of farmer's age of respondents in

2017.

Age

Group

(Year)

Number of

people

Percentage

(%)

21-30 2 6,67

31-40 8 26,67

41-50 17 56,67

51-60 3 10,00

Total 30 100,0 0

Average: 42 years

Source: Primary Data (processed), 2017.

Based on Table 1, it can be seen that most

respondents are at the age of 41-50 years (56.67%)

and are at least in the range of 21-30 years (6, 67%).

This shows that the average age of respondents is still

at productive age.

Education and Experience Level. Farmers of

respondents are divided into five groups based on the

level of education that is not finished primary school,

graduated from elementary school, graduated from

junior high school, graduated from high school, and

graduated degree. In the following table it can be seen

that the level of education of respondent farmers is

quite varied with the most respondents take high

school and equivalent as many as 12 people (40%).

A total of 6 people graduated from elementary

school, and 4 people were able to graduated degree.

The formal education of the respondent farmers is not

very influential because all the respondent farmers get

informal education that is training and counseling

conducted by farmer group and local government.

Table 2. Distribution of farmers' level of education in 2017

Level of

education

Number of

people

Percentage

(%)

primary

school

6 20,00

elementary

school

8 26,67

h school 12 40,00

graduated

ree

4 13,33

Total 30 100

Source: Primary Data (processed), 2017.

Citra water apple farmers have different experience

and not too long in developing the commodity of citra

water apple because it is classified as new kind of fruit

plants in Indonesia. The following distribution of

farmers' experience can be seen in table 3.

Table 3. Distribution of farmers' experiences in 2017.

Level of

education

Number of

people

Percentage

(%)

8 26,67

ears 16 53,33

ears 4 13,33

ears 2 6,67

Total 30 100

Average: 2 years

Source: Primary Data (processed), 2017.

Land Size, Land Status, and Number of Trees

Based on the number of plants owned by respondents

in table 4 it is known that most of the respondent

farmers have the number of trees 1-200 trees reach 17

people (70.83%). The age of trees planted by farmers

is generally over 2 years old.

Table 4. Distribution of the number of plants owned by

farmers of respondents in 2017.

Level

Education

Number of

people

Percentage

(%)

12-100 8 26,67

101-200 11 36,67

201-300 5 16,67

>301 6 20,00

Total 30 100

Average: 229 trees

Source: Primary Data (processed), 2017.

Based on the land ownership status of the farmers,

the respondents are differentiated into the farmers

who process their own land, the farmers who cultivate

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Technology

224

the land belonging to the same lease land and the

farmers who process the land of people (profit

sharing).

Farmers who worked on their own land amounted

to 20 people, but there is 1 person who also worked

on rented land. In addition there are 4 people who

work on the land of others with the terms of profit

sharing where all expenses borne by the tiller. This

shows that the ownership of the land of the

respondents is high so that the farmers can more

easily take decisions in cultivation. The farmers' land

area ranges from 0.016 to 0.7 hectares. It is seen that

most of the farmers that is 50 percent have cultivated

land with an area of between 0.1 - 0.3 hectares. The

grouping of farmers based on cultivated area can be

seen in Table 5.

Table 5. Distribution of farmers of respondents by land area

Cultivated

Land Area

Farmers Respondents

Number of

people

Percentage

(%)

< 0,1 ha 7 23,33

0,1-0,3 ha 17 56,67

>0,3 ha 6 20,00

Total 30 100

Average : 0,24 ha

Source: Primary Data (processed), 2017.

Farming Status. Based on the status of farming in

table 10, it is known that most farmers of respondents

do citra water apple farming as a side business that is

22 people (91.67%). Respondents who made the citra

water apple as the main livelihood is only 2 people

(8.33%).

Table 6. Distribution of farmers respondents based on

farming status

Cultivated

Land Area

Farmers Respondents

Number of

people

Percentage

(%)

< 0,1 ha 1 4,16

0,1-0,3 ha 1 4,16

>0,3 ha 22 91,66

Total 24 100

Source: Primary Data (processed), 2017.

The household income of farmers is derived from

the income of farming and income outside the farm.

Revenue outside the farm can come from off-farm

employment, income of other family members

coming from outside the farm, outside assets and

other farming. Farmers of respondents generally have

income outside the farm which reaches Rp 2.000.000

per month as many as 18 people (75%). The main

work done by farmers consists of civil servants,

laborers, entrepreneurs and farmers.

3.1.2 Cost of Revenue, Total Cost and

Revenue Farming Citra Water Apple

Regional Research

Admission Fee, total cost and income of citra water

apple farming system in Hamlet II Paya Salit Village,

Pulau Semikat, Langkat District can be explained in

table 7 below. Business income obtained from the

number of fruit multiplied by the unit price and from

the seeds sold as much as 229.27 seeds with the price

per seed of Rp. 10,000.

The total cost of the business consists of cash

costs and calculated costs. The cash cost consists of

purchasing fertilizers, labor costs outside the family,

and paying taxes. While the calculated costs consist

of labor costs in the family, depreciation costs, and

land rent.

3.2 Discussion

3.2.1 Constraints Faced in Citra Water

Apple Farming

Farmers in Hamlet II Paya Salit Village, Pulau

Semikat, Langkat District faced various obstacles in

implementing citra water apple farming system. Most

of the problems lie with the cultivation sector.

Problems in the upstream subsystem is the

availability of labor, the family members there tends

reluctance because it is busy with their individual

activities. Farmers only do this farming activities as a

side job so that when taken into account the use of

labor is still less efficient. Farmers who only do

maintenance activities when they are spare plants

causing plants to be unkempt, crop failure, dead, and

the end of many farmers stopped as in the first year of

production of this citra water apple in Hamlet II Paya

Salit Village, Pulau Semikat, Langkat District.

The use of labor has an impact on the increase in

cash costs that must be issued by farmers who are still

limited capital. At the beginning of the event often

occurs the theft of plants up to hundreds of trees and

fruit when going to harvest. The cultivation

subsystem has many problems because the plant is so

sensitive that cultivation must be tightly controlled.

The use of inputs such as intensive labor leads to high

costs and also ultimately makes the selling price high.

Farmers do cultivation without training so farmers

do it with an estimate of personal experience alone.

Complaints that often arise from farmers are pests and

Analysis of Citra Water Apple Business in Hamlet II Paya Salit Village, Pulau Semikat, Langkat District

225

diseases. Fruit does not have a layer of wax as told

before so farmers are not ready Because the fruit field

is easily attacked by pests. The level of pest attack is

very high when the farmer late to do the packaging of

fruit. Conversely wrapping fruit when the fruit is still

too small also makes fruit to fall out.

Fertilization done by farmers is less causing the

growth of plants disturbed. The high price of non-

subsidized fertilizer is one of the causes of the lack of

fertilizer which resulted in low yields other than

because farmers' crops generally have not entered the

productive age of 2-10 years.

The cost of drugs to treat diseases tend to be high

because of the variety of pests and diseases

encountered. The lack of key inputs that directly

affect fertilizers and medicines causes far-reaching

crop yields. The problem of the off-farm subsystem,

the problem faced is the low selling price due to the

low quality of the crop. The harvest is strongly

influenced by the physical appearance of the fruit,

such as the color and smoothness of the fruit skin. The

color of the fruit is too old due to poor wrinkling

mistakes. Unscheduled harvests lead to

overproduction but the bad consequences of the fruit

sale price have been reduced.

The marketing of this fruit resulted in many

farmers began to rely on the sale of transplanted

seedlings. In the field seen some farmers tend to focus

on grafting graft so that the harvest is low. The farmer

cuts the fruit on the transplanted portion so that the

nutrients are focused on root growth. Transplants

should only be done when the plants are grown,

which is around the age of two years. Young breeds

cause the transplant plants to die more easily. The

price of citra water apple seeds in the market reaches

Rp 10,000-Rp15 000.

3.2.2 Analysis of the Income of Citra Water

Apple Farming System

The analysis of farming is done by calculating the

level of income and R / C ratio of cashew water

farming system. Respondent analysis of cashew water

farming system done in this research is 30 people.

The farming analysis conducted refers to the concept

of income over the cost of cash costs and total costs.

Cash costs can be interpreted as costs incurred in

cash such as the cost of purchasing production

facilities, the cost of labor outside the family and

taxes. The total cost is the cash cost plus the

calculated cost. Calculated costs are expenses that are

not in cash such as fees for family labor use,

depreciation of equipment and the cost of

counterparts for land or lease of land.

The analysis of farm income is useful to give an

idea of the advantages or disadvantages of a farm that

is calculated based on the amount of revenue earned

less the cost incurred. Analysis of farm income

includes an analysis of revenue on cash costs and

income analysis over total costs. In the cost

component, the costs incurred by the farmers consist

of cash costs and costs are taken into account.

Analysis of farm income is done by comparing

respondent farmers based on plant age.

3.2.3 Farming Costs Structure

Expenditure or expense is the entire sacrifice of

economic resources in the units of money (rupiah)

required to produce the product within a production

period. Production cost is all expenses incurred to

produce a commodity or product either in cash or

taken into account. The cost of farming is divided into

cash costs and calculated costs. The calculation of

cash costs includes the cost of cutting the harvest

payments, the purchase of fertilizers, medicines, fruit

wrappers, family labor and other costs such as tax

costs. Calculated costs or non expenses include

depreciation expenses and counterpart fees for family

labor, and land. The balancing cost for land or land

rent is included in the cost is taken into account

because the average farmer has his own land.

Depreciation cost of equipment in each used by

farmers have the same value because the comparable

farming is a farm which in the same cultivation

technique so that the equipment used for farming is

relatively the same.

3.2.4 Cash Cost

The cash cost of the citra water apple farming system

used in Hamlet II Paya Salit Village, Pulau Semikat,

Langkat District include :

a. Seeds

Seeds of plants used are the result of grafting

seedlings that where the price of the seedlings

transplanted citra water apple are Rp 10.000.00

b. Fertilizer

The use of fertilizer in citra water apple

farming

is manure, artificial fertilizer (NPK Mutiara,

Phonska, KCl). The amount of fertilizer used by

farmers of respondents in 2017 per hectare can

be seen in the following table.

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Table 7. Use of fertilizer per stratum age per hectare per

year

No. Type

Fertilizer

Total Value

(Rp)

1. Manure

(sack)

1.416,67 9.916.690

PK (k

) 633,83 7.605.960

3. KCL (k

) 288,89 3.466.680

Total 2.339,39 20.989.330

Source: Primary Data (processed), 2017.

The results showed the use of fertilizers is very

varied and not patterned, it is because the farmer

does not follow the standard fertilization given

during counseling. Many farmers do not follow

the counseling because they are busy with their

main work.

Manure is purchased from animal breeders such

as goats, buffalo, and chickens that are scattered

around the research area. Artificial fertilizers

such as NPK, Phonska, and KCl are purchased

from kiosks of agricultural production facilities.

The cost of manure reached Rp 7 000 per sack

while the pearl NPK fertilizer reached Rp 12

000 per kg, Phonska Rp 3 000 per kg, and KCL

Rp 12 000 per kg. Artificial fertilizer prices are

cheaper when purchased per bag which weighs

about 50 kg where there are pieces to Rp 2000

per kg. The fertilizer cost reached Rp.

20,989,330 or approximately 41.05% cash cost

incurred by farmers. The use of fertilizer in the

field is still less than the standard of fertilization

is the cause of nutrient deficiency crops so that

the harvest is less than the maximum.

c. Plastic Packaging and Styrofoam Nets

Fruit wrapping costs is Rp. 4.700.000,00 or

7,42% cash costs incurred by farmers.

d. Families of Labor Affairs

The cost of labor is divided into two parts,

namely labor in the family and labor outside the

family. the use of labor is mostly in the weeding

stage that is equal to 247.24 HOK or about

32.61% total HOK. This is because the citra

water apple

requires a lot of nutrients and

fertilizers that many participate in improving the

growth of weeds in the vicinity so that farmers

should often weeding plants in order to make

efficient use of fertilizer is very expensive

because there is no fertilizer subsidy.

Labor outside the family that is used by the

respondent amounted to 121.66 HOK farmers

for a year with an average wage per day Rp

36. 302.72 for eight hours of work requires a fee

of Rp 4.730.772,76 per hectare per year or

reaches 6,15% cash costs.

Table 8. Cash cost incurred by citra water apple farmers

Descriptio

Total Unit

Unit

Price

(Rp)

Value

(Rp)

Installment

Cost of

Seed

350 seeds 5000 1.750.000

NPK

633,83 12.000 7.605.960

KCL

288,89 kg 12.000 3.466.680

Medicine

46,52 liter

200.00

9.304.000

Package

4700000

Labor

Purificatio

91,3 HOK 50.000 4.565.000

Pruning

5,31 HOK 50.000 265.500

Fertilizatio

11,04 HOK 50.000 552.000

Spraying

9,87 HOK 50.000 493.500

Wrapping

6,3 HOK 50.000 315.000

Harvesting

00.00 HOK 50.000 -

Total Cost

of Family

Affairs

6.191.000

Tax

350.000

Tota Cash Fees

33.367.64

Source: Primary Data (processed), 2017.

In the table above can be seen that cash business cash

citra water apple cost of Rp. 33,367,640, - consisting

of installment costs in the purchase of seeds

amounting to Rp. 1.750.000,00 NPK fertilizer of Rp.

7.605.960,00 KCL fertilizer as much as 288.89 kg of

Rp. 3.466.680,00 the use of drugs 46.52 liters of

Rp.9.304.000,00 Labor costs from outside the family

in terms of cleaning, pruning, fertilization, spraying,

packaging, and harvesting of Rp. 6.191.000,00 and

the tax payment fee of Rp. 350.00.-.

3.2.5 Calculated Costs

Costs are calculated on a citra water apple farming

imagery used in Hamlet II Paya Salit Village, Pulau

Semikat, Langkat District cover depreciation of

agricultural equipment, labor in the family, and land

lease are taken into account. Land owned by farmers

in this village has an area of 0.005 ha to 0.7 ha.

Analysis of Citra Water Apple Business in Hamlet II Paya Salit Village, Pulau Semikat, Langkat District

227

The cost of land rent per hectare per year reaches

Rp 7,000,000. The land used is owned by the farmers

and some of the land is cultivated with profit sharing

so this cost does not include the cash cost.

Depreciation cost of equipment in each used by

farmers has the same value because the comparable

farming system is the same guava farming

(homogeneous) or farming in the same cultivation

techniques so that the equipment used for farming is

relatively the same. Tools that are mostly owned by

farmers are hoes, sickles, cutting scissors, fruit

scissors, scissors, and machetes. The cost of

depreciation of farm equipment owned by farmers is

computed using the straight-line method. Calculation

of the value of depreciation of agricultural equipment

can be seen in table 9.

Table 9. Depreciation value of agricultural equipment

Farming

tools

Total

Unit

Price

(Rp)

Value

Time

(Rp)

Economic

Age

(Years)

Depreci

ation

per year

(Rp)

Hoe

1 50.000 750 5 9.850

Sickle

1 30.000 750 5 5.850

Cengkron

1 20.000 750 5 3.850

scissors

cuttings

1 50.000 0 2 25.000

Fruit

Scissors

1 25.000 0 2 12.500

Scisso

1 10.000 0 2 5.000

Machete

1 50.000 750 5 9.850

Total Cash Cost

235 000 71.900

Source: Primary Data (processed), 2017.

The calculated cost in the citra water apple farm in the

research area consists of depreciation cost of Rp.

71.900, labor cost of the family (HOK) of Rp.

3.500.000 and land rent of Rp. Rp. 7,000,000. For

more details can be seen in table 10 below.

Table 10. Costs calculated on the citra water apple farming

system

Component Cost (Rp)

Depreciation costs

71.900

Famil

Labor (HOK)

3.500.000

Land ren

7.000.000

Total

10.571.900

Source: Primary Data (processed), 2017.

3.2.6 Reception Farming

Acceptance of received farming is the multiplication

of total crop yield and the selling price received.

Reception of farmers comes from the production of

citra water apple farming system. Acceptance of citra

water apple farming system in Hamlet II Paya Salit

Village, Pulau Semikat, Langkat District in 2017 is

Rp. 55,505,167 from fruit receipt and seed receipt of

Rp. 53,212,500 and Rp. 2,292,667. Acceptance of

seedlings is obtained when plants are grafted.

Transplantation reduces the productivity of the fruit

because the fruit will have to be removed so that the

roots can grow.

Table 11. Average acceptance of citra water apple farming

in 2017

Descriptio

Total Unit

Unit

Price

)

Value

(Rp)

Fruit 2128,5 kg

25.00

53.212.50

Seeds 229,27 Seeds

10.00

2.292.667

Total Revenue

55.505.16

Source: Primary Data (processed), 2017.

3.2.7 Farming Income

Farm income will be profitable if the difference

between revenue and expenditure is positive.

Revenue is divided into revenues over cash costs and

total cost revenues. Revenue on cash costs is derived

from a reduction in total revenue by cash

disbursements. Revenue on total costs is derived from

the reduction in total revenue and total expenditure.

Table 12. Revenue of citra water apple farming 2017

Description

Value

(Rp)

Total Revenue 55.505.167

Total Entire Cos

43.948.140

Revenue on cash costs 22.137.527

Revenue on total cos

11.557.027

Source: Primary Data (processed), 2017.

Table 12. shows the production value (revenue)

generated from the business in this research area of

Rp. 55.505.167, - per one cycle. Citra water apple is

sold fresh. The total cost resulting from the sum of

fixed costs and variable costs is Rp. 43.948.140. The

results of the data from Table 12 show the net income

received by the farmers of the citra water apple

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Technology

228

business obtained from the total receipts less the total

cost / total cost is Rp. 11,557,027 per cycle.

By looking at the criteria of assessment that a

business is profitable if a price level multiplied by the

amount of citra water apple production exceeds all

costs, it can be ensured that the citra water apple

business is feasible to develop. At the level of efforts

to maximize profits are usually realized through

improvements in technical efficiency.

3.2.8 Farming Efficiency

Hernanto's (1989) opinion, one measure of farm-

based income efficiency is the calculation of Revenue

and Cost Ratio (R / C Ratio). Overall value of R / C

cash and R / C total of this business is 1.66 and 1.30.

Citra water apple farming in Hamlet II Paya Salit

Village, Pulau Semikat, Langkat District is feasible to

be cultivated (shown) as indicated by the R / C Ratio>

1, the average value is 1.66. It means with the

sacrifice (production cost) of Rp. 1.00 then the farmer

will get the revenue (production value) of Rp. 1.66.

With reference to this situation, the citra water apple

farming system in the research area is feasible and

provides benefits even to be developed or

implemented. For more details can be seen in table

13.

Table 13. Efficiency of citra water apple farming 2017.

Description Value

(Rp)

Total Revenue 55.505.167

Total Entire Cos

43.948.140

Revenue on cash costs (A-B) 22.137.527

Revenue on total cost (A-D) 11.557.027

R/C rasio over cash char

e (A/B) 1,66

R/C rasio over total costs (A/D) 1,3

Source: Primary Data (processed), 2017.

4 CONCLUSIONS

Based on the analysis of farm income done to the

farmers of respondents in Hamlet II Paya Salit

Village, Pulau Semikat, Langkat District, it can be

concluded:

1. Citra water apple farming in the research area is

an activity that is economically still profitable for

farmers that is Rp.11.557.027, -. Overall, the

citra water apple farm has an income value on

cash cost and revenues at a positive total cost.

2. In terms of the feasibility of citra water apple

farming system is a kind of activity that deserves

to be cultivated and developed because the value

of Revenue Cost Ratio 1.66.

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