Analysis of Intercropping Farming Business of Dry Rice (Oryza Sativa l.) And red Chili (Capsicum Annum l.) In Kuta Usang Village, Pegagan Hilir District

Abstract

 his research aims to analyze the effects of production factors, namely paddy seed cost, chili seed cost, chili fertilizer cost, and chili labor cost, on the household income of intercropping farmers cultivating upland rice (Oryza sativa L.) and red chili (Capsicum annuum L.) in Kuta Usang Village, Pegagan Hilir Sub-district, Dairi Regency. Additionally, the research measures the financial feasibility of the intercropping farming system. The sampling technique used was simple random sampling, with a total population of 308 farmers engaged in intercropping upland rice and chili. The sample size was determined using the Slovin formula with a 10% margin of error, resulting in 60 respondents. The research utilized primary and secondary data, collected through surveys using open-ended questionnaires and direct field observation. Primary data were obtained directly from the farmer respondents, while secondary data were gathered from official publications such as BPS and supporting documents. The findings indicate that paddy seed cost, chili seed cost, chili fertilizer cost, and chili labor cost simultaneously have a significant effect on farmers’ household income, with a coefficient of determination (R²) of 86.7%. However, partially, only the chili fertilizer cost variable shows a significant effect. The financial feasibility of the intercropping farming, measured by the B/C ratio, resulted in an average value of 1.6, indicating that the intercropping of upland rice and red chili is feasible since the income exceeds the costs incurred. This research is expected to serve as a reference for farmers, policymakers, and future researchers in developing more efficient and sustainable intercropping farming strategies.