District Feasibility Analysis Of A Certified Rice Seed Breeding Company (In Doko District, Blitar Regency

Abstract

This research aims to analyze the feasibility of a certified paddy seed breeding business in supporting
the sustainability of cultivation and seed independence in Doko Subdistrict, Blitar Regency. The research was conducted on the group Murih Maju Farmer Group purposively from April to June 2024 using
a census method on 15 respondents. The data were analyzed using a financial approach including the
analysis of production costs, revenue, income, R/C Ratio, Net Present Value (NPV), Net Benefit Cost
Ratio (Net B/C), Internal Rate of Return (IRR), Payback Period, and sensitivity analysis. The research
results show that this business has an average production cost of IDR 9,408,574.76 per planting season,
with an average revenue of IDR 15,951,425.24 per planting season and an R/C Ratio of 2.6, indicating
profitability. The NPV analysis yielded a positive value of IDR 232,480,306, the Net B/C was 4.43, the IRR
reached 65.58%, and the Payback Period was 2 years and 11 months. Sensitivity analysis on a 10% increase in investment costs shows that this business is not sensitive to such changes. Based on the overall
financial indicators, the paddy seed breeding business in the area is declared feasible and profitable to
be operated sustainably.