The comparative analysis of the cost of production facilities and the income of lowland rice farmers irrigation and non irrigation systems: Comparison of Indonesia and Malaysia”

Abstract The purpose of this article is to analyze the influence of production factors on income, analyze the amount of farmer’s profit, and analyze the feasibility of lowland rice farming in Indonesia-Malaysia, both irrigated and nonirrigated. Data analysis was carried out using multiple linear regression analysis. Comparison of production and income in North Sumatra - Indonesia obtained a tvalue of 2.805 > t table at α 5%, which is 2.064, while income obtained a t-value of 2.532 > t table at α 5%, which is 2.064. In the State of Kelantan, Malaysia, paddy production obtained a t-value of 5.702 > t table at α 5%, which is 2.064, while income obtained a t-value of 2.532 > t table at α 5%, which is 2.064. In North Sumatra-Indonesia, irrigated rice farmers earned a higher income of Rp. 8,756,800 compared to non-irrigated rice farmers, who earned an income of Rp. 5,397,900 with an average land area of 0.31 ha. In Kelantan-Malaysia, irrigated rice farmers earned an income of Rp. 97,840,025 (RM. 27,954), which was higher than non-irrigated rice farmers, who earned an income of Rp. 27,261,000 (RM. 7,788) with an average land area of 3.58 ha. The R/C ratio of irrigated rice in KelantanMalaysia and North Sumatra-Indonesia was greater than that of non­irrigated rice. The result is that the production and income of irrigated and non­irrigated rice fields are higher in Malaysia than in Indonesia. This is because the land area owned by farmers in Malaysia and Indonesia is very different.