FEASIBILITY ANALYSIS AND CAPITAL SOURCES OF ARABICA COFFEE FARMING IN PERBAJI VILLAGE, TIGANDERKET, KARO DISTRICT, NORTH SUMATERA

Abstract

This study aims to analyse the sources of capital and feasibility of Arabica coffee farming in Perbaji Village, Tiganderket District, Karo Regency. The research method used was survey with data collection techniques through interviews using questionnaires. The analysis used included cost analysis, revenue, income, break-even point, and R/C ratio. The results showed that all coffee farmers in Perbaji Village used their own capital (100%). Total production costs averaged Rp 13,693,429 per year, with average revenue of Rp 29,760,000 and net income of Rp 16,066,571 per year. The production break-even point is at 38.52 kg per harvest season, while the price break-even point is IDR 616,319. The R/C value of 2.17 indicates that Arabica coffee farming in this area is feasible.