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System Dynamics Implementation To Increase The Number Of Organics Maize Level On-Farm Production In Supporting Smart Agriculture (Case Study : East Java, Indonesia)

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  • Mukhlis, Iqbal Ramadhani

Abstract

The country of Indonesia is one country that has abundant natural resources and has enormous potential in the agricultural sector. One of the sub-sectors in agriculture in Indonesia is food crops, this food crop sub-sector is divided into two categories, namely rice and secondary crops, one of which is widely cultivated is corn. In terms of organic corn production in 2016, the province of East Java had the largest production value of 6,278,264 tons. In terms of corn consumption, the average annual consumption of the community against organic corn from 2011 - 2015 amounted to 7,232,453 tons. These results indicate that organic corn is in demand by the Indonesian people but from the production sector it is still unable to meet the demand. From these results, this study will use a case study on the application of on-farm supply chain management for organic corn production. In this study, an increase in organic corn production was modeled using a system dynamics to analyze current conditions and evaluate existing problems and provide alternative problem solving scenarios. The simulation results with land expansion of around 73,000 ha per year for 14 years, organic corn production will be around 4250 tons in 2030. Land intensification scenarios, organic corn production increased by an average of 0.35% per year.. The results of scenarios of increasing farmer income by implementing Smart Agriculture reached Rp. 6,016,020. And the payback period for Smart Agriculture investment is 3.2 or three years and two months.

Suggested Citation

  • Mukhlis, Iqbal Ramadhani, 2018. "System Dynamics Implementation To Increase The Number Of Organics Maize Level On-Farm Production In Supporting Smart Agriculture (Case Study : East Java, Indonesia)," OSF Preprints 6pxjv, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:6pxjv
    DOI: 10.31219/osf.io/6pxjv
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    2. Schimmelpfennig, David & Ebel, Robert, 2016. "Sequential Adoption and Cost Savings from Precision Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(01), pages 1-19, January.
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