scholarly journals Financial Analysis of the Private Organic Farm: Sanga Agro Farm

2021 ◽  
Vol 29 (43) ◽  
pp. 41-49
Author(s):  
Gyanu Acharya

The study was regulated to find out the financial profitability of private organic farm of Sanga, Kavre. The study is based on both primary and secondary sources of data. The collected data using interview were analyzed by presenting them on table and interpreted through Benefit Cost Ratio (BCR) in 10 percent discount rate. For this, all figures were converted into Net Present Value (NPV) of Nepalese rupees. The findings of the study showed that the BCR was greater than one such as 1.47 ratios (BCR>1). The BCR value showed that the farm has contributed to increase more profit of owner by selling their farm’s products. The project of organic items: beans and garden cress was able to produce fresh items, provide space for employment. These organic products supported human health, soil health, and maintained conducive environment.  

Author(s):  
Eko Suwito Handjojo ◽  
Rizal Syarief ◽  
Sugiyono

Various kinds of tea can be used as food and anti-diabetic medicine. One of plants that can be used as medicinal subtancesis Teh Papua (<em>Vernonia amygdalina</em>). Teh Papua, as become one of the local wisdom in Papua, has been used for generations to medicate malaria epidemic and  blood sugar disease. Hence, good bussiness planning review will be needed to develop this potential plant. The purpose of this study is to analyze the feasibility of small Teh Papua industry. Descriptive research method was used in this research. Data are collected by observation, survey, and depth-interview with the bussiness actor. Aspects observed in this studyare aspects of market, marketing, technical and technological, organiza-tional and also management. Measurement of financial aspectfeasibility in this study is using Net Present Value (NPV), Internal Rate of Return (IRR), Net Benefit-Cost Ratio (Net B/C ), and Payback Period (PP). The result shows commercial financial analysis of Teh Papua indicates a positive NPV value of Rp. 316 068 835, IRR value of 45.17%, net value B/C of 2.48 and Payback Period of 17% and 27% depreciation.


2016 ◽  
Vol 835 ◽  
pp. 753-759 ◽  
Author(s):  
J.N. Sheen

In this paper, fuzzy financial evaluation models are derived to analysis investment financial profitability and possibility for wind power generation project in Penghu, Taiwan. The financial subsidy and feed-in tariff (FIT) are two effective market mechanisms to promote wind power development in Taiwan. The performances of the proposed fuzzy profit models are verified by considering their application to a simulation case. The study shows the fuzzy financial indexes of the simulated 2,400 kW wind power project may little uneconomic possibility, with negative net present value, with benefit cost ratio smaller than 1, and with payback years longer than its life span, in both two scenarios. The FIT rates should be revised to match wind power current market to give more attractiveness for potential investors. The studied results are also consistent with those provided by the conventional crisp models, and provide readily implemented possibility analysis tools for use in the arena of uncertain finance.


2021 ◽  
Vol 15 (1) ◽  
pp. 89-101
Author(s):  
Haris Prasetyo ◽  
Dodik Ridho Nurrochmat ◽  
Leti Sundawati

Bamboo is proven to provide multi-benefits from the aspects of production, ecology and socio-economic. However, bamboo is still not fully developed. People tend to replace bamboo with wood species which are considered to be more profitable, one of them is sengon. The purpose of this study was to analyze bamboo management practices carried out by farmers and compare between sengon and bamboo cultivation which is more financially profitable. Financial analysis conducted includes: Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR). Analysis of market aspect and social aspect using the Market Analysis and Development (MA&D) method. The sensitivity analysis is carried out on the condition of fixed income while costs increase by 10% and 30% and fixed costs while income rises by 10% and 30%. The analysis included the analysis of market aspect and social aspect. The results of the financial analysis showed that the cultivation of petung bamboo with a spacing of 6x6 meters gave the highest yield with NPV value of IDR330.329.538, BCR 29.10 and IRR of 25.18%. Nevertheless; looking at market and social aspects, bamboo and sengon can be developed in agroforestry to ensure sustainability and continuity of income for farmers. Bamboo and sengon cultivation business is feasible to be conducted because the high demand which cannot be met from the existing sources.


2017 ◽  
Vol 6 (1) ◽  
pp. 56
Author(s):  
HERIYANSAH HERIYANSAH ◽  
ANI MUANI ◽  
IBRAHIM ISYTAR

UPJA (Usaha Pelayanan Jasa Alsiantan) as economic organization in rural area, which moves in the management and service, has purpose to get profit (profit making), managed based on economic scale, and market oriented.  The purpose of this present research are: 1) Knowing the financial appropriateness of soil tillage service using the hand tractor, and 2) Knowing the comperation of the farmers’ income with land soil tillage (Olah Tanah) system (OT) that using hand tractor and the farmers’ income without soil tillage (Tanpa Olah Tanah) system (TOT).  The present research that involved nine UPJA, 45 farmers using land maintenance service and 45 farmers whom not using land maintenance service, that spread out in five Sub-district in Sambas district, that are selakau, Selakau Timur, Pemangkat, Tebas an Jawai Sub-district. The data analyzed by two analysis tools that are: 1. The financial analysis with assessment indicators that an Net Present Value, Internal Rate of Return, Net Benefit Cost Ratio, and Sensitivity Analysis.  2. The t-Test analysis.


2000 ◽  
Vol 27 (7/8/9/10) ◽  
pp. 968-979 ◽  
Author(s):  
Julius H. Mangisoni

The crop sector in Malawi faces a number of constraints which must be overcome before agriculture can reach its full potential. This paper uses the policy analysis matrix (PAM) to assess efficiency in the crop sector and financial analysis to explore the potential of investing in a fruit juice extraction plant in Malawi. The PAM revealed that farmers in Malawi are efficient producers but they face negative incentives in the production and marketing of their products. The nominal protection coefficients (NPCs) for both maize and beans were less than 1 while those of inputs were more than 1. Similarly, the effective protection coefficients (EPCs) were less than 1, implying that the combined effect of transfers and tradable inputs is reducing the private profitability of the systems. On the other hand, the financial analysis demonstrated that Malawi can sustain a fruit juice extraction plant. The project had a positive net present value and a benefit/cost ratio greater than 1 (1.16). Recommendations made from the study relate to the need for diversification into fruits that can sustain a fruit juice extraction plant, encouraging private sector participation and reducing disincentives to crop production.


2018 ◽  
Vol 42 (6) ◽  
Author(s):  
Thais Ferreira Maier ◽  
Rubens de Miranda Benini ◽  
Cristina Fachini ◽  
Paulo José Alves de Santana

ABSTRACT Socio-economic aspects can limit the expansion of ecological restoration. One alternative to address this question is the development of restoration models that generate income to farmers in addition to the benefits from conservation itself. We designed and implemented the initiative "Sustenta A Mata," a project developed by The Nature Conservancy and supported by the Brazilian Development Bank (BNDES), to generate economic and social benefits for the communities involved. This study aims to analyze the financial viability of the enrichment restoration initiative in forest remnants based on a 30 year projection. The project was implemented on 17 hectares of land that included timber and non-timber species with a focus on the Juçara Palm (Euterpe edulis Mart.) for the production of fruit. Estimated earnings come from both the production of timber and juçara fruits. We considered input, equipment and labor costs for implementation, maintenance, and harvesting. For the economic analysis we used the following criteria: Net Present Value (NPV); Return on Investment (ROI); Benefit/Cost Ratio (B/C), and Payback. From these indicators the following values were obtained as results: US$4,040.80 of NPV, 13 percent of ROI, 1.59 of B/C and a 13-year Payback. These positive results for the aforementioned indicators reveal that the use of the enrichment restoration initiatives utilized in this project may contribute to the economic viability of the endeavor, contributing to a greater sustainability in rural areas.


2019 ◽  
Vol 44 (2) ◽  
pp. 154
Author(s):  
Al Hibnu Abdillah ◽  
Juraemi Juraemi ◽  
Taufan Purwokusumaning Daru

Since it was established in 2010 until 2016, Bali cattle farming and its byproduct of the Agricultural and Rural Training Center (P4S = Pusat Pelatihan Pertanian dan Pedesaan Swadaya) had never been evaluated for its financial analysis. This research aimed to evaluate the financial analysis of Bali cattle farming and its byproduct in the P4S of Cahaya Purnama. This research was conducted from September to December 2016 in the P4S of Cahaya Purnama, Tepian Baru Village, Bengalon Sub-district, East Kutai District. The sample was taken by using purposive sampling method with the criterion that the cattle were 8 to 24 months old. The instruments used to analyze the data were Net Present Value (NPV), Internal Rate of Return (IRR), Net Benefit/Cost Ratio, Payback Period and Return of Investment (ROI). Bali cattle farming business consisted of the development of Bali beef cattle as the main business and manure processing as the byproduct. Manure processing business was the attempt of the manager to utilize the waste of cattle and it was expected that it was able to add income for the farmers. The model of Bali cattle development was the integration between oil palm plantation and Bali cattle farming. The research findings showed that the NPV was 9%, indicating that the business was minus with the amount of Rp. 19,393,858, so that the value of IRR was not known. The value of Net B/C Ratio was 0.97; the value of payback period was 0.83 or 9 years; and the value of ROI was minus with the percentage of 19%. Therefore, the Bali cattle farming business was not feasible to continue and there should be some improvements needed to make it better.


2017 ◽  
Vol 5 (2) ◽  
pp. 213-224
Author(s):  
Sabila Mumtaz Khandari ◽  
Siti Jahroh

The majority of sheep farmers in Indonesia are small-scale ones who use grass which depends on weather as the feed. Petir Village is one of the villages in Bogor Sub-district where the sheep farmers raise their sheep traditionaly. Cassava leaf silage can be an alternative of good quality feed. Introduction of cassava leaf silage can affect the feasibility of livestock business. This study aimed to analyze the feasibility of sheep farming in terms of financial and nonfinancial aspects of introducing cassava leaf silage. Feasibility of non-financial aspects were analyzed using the legal, markets and marketing, management, technical, social, and environmental impact aspects. Whereas feasibility of financial aspects were analyzed using the feasibility criterias Net Present Value (NPV), Internal Rate of Return (IRR), Net Benefit-Cost Ratio (Net B/C), Gross Benefit-Cost Ratio (Gross B/C), and Payback Period. By introducing cassava leaf silage, the results of market and marketing, social, and environmental aspects showed that the business was feasible. Meanwhile, the result of financial analysis on the condition of introducing cassava leaf silage feed was not feasible for any business scale. Cassava leaf silage was not feasible when done individually so the formation of farmer groups can be a solution. In addition, farmers need information and training related to the implementation of cassava leaf silage to sheep.


2019 ◽  
Vol 44 (1) ◽  
pp. 139-152
Author(s):  
MS Rahman ◽  
M Khatun ◽  
MA Monayem Miah

The study was carried out to investigate profitability of mango farming and to assess the impact of BARI Aam-3 mango variety production on the farmer’s livelihood in four mango growing districts namely Khagrachori, Bandorban, Naogaon, and Satkhira of Bangladesh during February to March, 2018. A total of 128 BARI Aam-3 growers were selected using multi-stage random sampling technique. Descriptive statistics and financial profitability analysis was used to analyze data. The net return for one hectare of mango orchard was Tk. 730233 for 6-7 years of BARI Aam-3 mango orchard. Net present value was estimated to Tk. 444397 for BARI Aam-3 which indicates that mango cultivation fetches higher returns. The estimated benefit cost ratio was 2.01 for BARI Aam-3 which ensures that investment in BARI Aam-3 is feasible for the mango farmers. The BARI Aam-3 mango cultivation was also found to be a profitable enterprise since internal rate of return was very high (83.075%). The results also reveal that human capital increased by 54.34%, 68% and 60.54%; physical capital increased by 48.17%, 58% and 50% as well as social capital increased by 28.50%, 43% and 45.95% of the small, medium and large farmers respectively due to cultivation of BARI Aam-3 mango variety. Therefore, it is highly recommended to spread the information of BARI Aam-3 cultivation as a profitable enterprise among the mango growers throughout the country. Bangladesh J. Agril. Res. 44(1): 139-152, March 2019


2017 ◽  
Vol 14 (2) ◽  
pp. 32-37
Author(s):  
Rumana Akter ◽  
M Serajul Islam ◽  
Golam Rabbani

The present study was conducted in 2015 to examine the profitability of litchi orchard production at Dinajpur sadar upzila in Dinajpur district where litchi orchards are generally leases out for 1 to 6 years by the owners known as “Deed”. In total 312 litchi orchard trees of which 254 were Bombai, 40 Madrazi, 20 China-3, 2 China-2 and 3 were Bedana, were selected to estimate the BCR, NVP and IRR of litchi production. The litchi trees were 18 to 22 years old. Project appraisal techniques and sensitivity analysis was done by using primary data to determine cost and benefits from litchi production. The study revealed that individual’s investment on litchi production is profitable. The study also found that in producing litchi Benefit Cost Ratio (BCR), Net Present Value (NPV) and Internal Rate of Return (IRR) were 1.93, Tk. 1643896 and Tk. 1230, respectively. Sensitivity analysis suggested that the investment in litchi production is profitable even for 10% increase in operating and maintenance cost or 10% decrease in gross benefit.The Agriculturists 2016; 14(2) 32-37


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