Rice farming business risk analysis in Padang City

Abstract

Based on the Area Sample Framework (KSA) results, rice production in West Sumatra has decreased by 6 per cent from 2019 to 2020. This shows that rice farming still faces various risks affecting its production and productivity. As the main farming actors, farmers receive the most significant impact and risk due to climate-related disasters. Farmers must bear risks in production, price, market, financial, technological, social, legal, and human risks. Production risk occurs due to yield fluctuations due to various factors that are difficult to predict (climate change, extreme weather, floods, droughts, and pest attacks). This study aims to (1) identify the risks of rice farming in Padang City and (2) measure the magnitude of rice farming risks faced by farmers in Padang City. Data were collected using questionnaires from 30 farmers. The results showed that the risks faced by farmers were the risk of land management, the risk of flooding, risk of drought and the risk of pest and disease attacks. The risk faced by farmers in their farming business as a whole is low. The risk of flooding and drought has a large percentage of greater risk. The flood risk mitigation carried out by farmers, in general, is to let their land be flooded, while farmers carry out drought risk management by looking for water sources.