Simulation Model and Scenario to Increase Corn Farmers’ Profitability

Abstract

Corn demand in Indonesia is quite high; this commodity is useful as food, as animal feed ingredients, and as industrial raw materials. The main problem in corn farming is not enough production to meet the demand as staple foods and industry. Therefore, it is necessary to increase the amount of corn production to meet demand as well as to increase farmers’ income and profits. Based on this condition, in this research we propose to develop a simulation model and scenario to increase farmers’ income through land productivity improvement. As a method use for model development, we utilize system dynamics framework based on consideration that system dynamics is a scientific framework for addressing complex and nonlinear feedback systems. System dynamics can use both qualitative and quantitative techniques such as computer simulations. It also facilitates the adoption of nonlinear mental models so that they can search and describe the feedback process of problem dynamics. In particular, system dynamics has proven useful in overcoming agricultural problems. Simulation results show that increasing farmers’ income can be done through increasing land productivity. With the increase in land productivity, corn production will increase, hence the income of corn farmers will also increase. Increased productivity can be done by carrying out structural and non-structural approaches. Structural approach can be carried out through rehabilitation of watersheds and irrigation networks. Meanwhile, non-structural approach can be carried out through the application of new technologies, strict land conversion rules, dynamic planting calendars, dissemination of climate information, and the development of climate field schools.