Prospects and Feasibility of Implementation of Agricultural Transformation for Food Crops on Sub Optimal Land in Ogan Ilir Regency, South Sumatra

Abstract

Agricultural transformation is currently being pursued in sub-optimal land areas, as an effort to increase agricultural production. Ogan Ilir Regency is one of the areas planned to carry out agricultural transformation. This study aims to analyze the prospects and feasibility of implementing agricultural transformation. This research is a survey that takes primary data which is processed and analyzed using various eligibility criteria from technical, market, social, environmental and financial feasibility aspects. From the technical aspect, it can be concluded that the implementation of agricultural transformation in this area is feasible with recommendations for the type of commodity, namely Lebak rice. In the market aspect, it is also feasible to implement but requires improvement of the marketing chain to be simpler through empowering farmer groups. In the social and environmental aspects, agricultural transformation which will have an impact on increasing job opportunities, improving and adding infrastructure, as well as developing community mindsets, knowledge, and skills. The results of the financial analysis complement the feasibility of agricultural transformation in this area, which is indicated by the NPV value of Rp. 74.312,570, B/C ratio of 2.88, with an IRR value of 34%, and a BEP value of 2,268 Kg.