Analysis Of Factor Affecting Cocoa Farmers’ Income in Nagori Pinangratus, Jorlang Hataran District, Simalungun Regency

Abstract

This study aims to evaluate the economic feasibility of cocoa farming and identify the factors influencing cocoa farmers’ income in Nagori Pinangratus, Jorlang Hataran District, Simalungun Regency. The study was conducted from September to November 2024 and involved 45 cocoa farmers selected using purposive sampling. The data were analyzed using farm income analysis, the Revenue–Cost Ratio (R/C Ratio), and multiple linear regression. The results indicate that the average annual income of cocoa farmers was IDR 11,046,662.60, with an R/C Ratio of 4.71, indicating that cocoa farming in the study area is economically feasible. The regression results further demonstrate that land area and production volume have positive and statistically significant effects on farmers’ income, whereas production costs have a negative and statistically significant effect. Simultaneously, the three independent variables significantly affect farmers’ income, as indicated by an F-statistic of 50.939 with a significance level of 0.000. The coefficient of determination (R²) of 0.867 indicates that 86.7% of the variation in farmers’ income can be explained by land area, production costs, and production volume, while the remaining 13.3% is attributable to other factors not incorporated into the model. These findings suggest that strategies to enhance cocoa farmers’ income should focus on optimizing land utilization, improving the efficiency of production-cost management, and increasing farm productivity