Comparison of financial feasibility between hybrid maize farming for seed production and feed production in Bone District, South Sulawesi

Maize is one of the most important food commodities after rice in Indonesia. The maize productivity improvement program is expected not only to be able to increase production but also to increase farmers’ income so that the self-sufficiency that you want to achieve can be realized. This study aims to compare the financial feasibility of hybrid maize farming for seed production and hybrid maize farming for feed production. This research is comparative research, with a total sample of 100 farmers selected by purposive sampling. Research data were collected through questionnaires and interviews. The method used to calculate feasibility uses the R/C ratio and B/C ratio, as well as the average test (t-test) of the difference in feasibility for the two farms. The results showed that the feasibility value of hybrid maize farming for seed and feed production respectively gave an R/C ratio of 2.0 and 2.3; and a B/C ratio of 1 and 1.3. There is a difference in feasibility between hybrid maize farming for seed production and feed production with the average different test results, where the value of tcount > ttable. The different test values (t-test) for the R/C ratio is 3.928 while for the B/C ratio is 2.387. Based on the calculation of financial feasibility, hybrid maize farming for feed production is more feasible (profitable) to be cultivated compared to hybrid maize farming for seed production. From this research, it is hoped that it will provide information to farmers in choosing which farming business to cultivate.


Introduction
Maize is one of the carbohydrate-producing food crops besides rice and wheat [1].So the government makes maize one of the priority food commodities to be developed.Expanding the planting area and increasing productivity are efforts that can be made to increase domestic maize production.Increased productivity is expected not only to be able to increase production but also expected to be able to increase farmers' income so that the maize self-sufficiency to be achieved can be realized.
To support maize self-sufficiency, high-yielding varieties are needed, especially in production.Hybrid maize varieties are recommended for cultivation because they have several advantages, including high production quantities, that can reach 8-12 tons/ha and also resistance to pests and diseases, as research [2] showed that hybrid maize seeds had an average production of 9.10 tonnes/ha.However, hybrid maize varieties also have weaknesses, such as the price of seeds that are more 1230 (2023) 012222 IOP Publishing doi:10.1088/1755-1315/1230/1/012222 2 expensive and cannot be used as seeds (seed sources) because their production will drop by up to 30% [3].Hybrid maize varieties are very popular among farmers, especially because of the higher yield potential that can generate higher returns.However, hybrid maize plants also face environmental factors such as high rainfall, ice storms, floods, drought, and lodging of the crop; biological factors such as insects or pests of maize plants; institutional factors such as government support regarding prices, lack of credit facilities, lack of insurance companies, lack of government research institutes in producing hybrid seeds; and economic issues such as higher input and output prices and lack of market facilities [4].
The use of superior seeds plays an important role in maize cultivation to increase maize productivity.Based on the percentage of seed use in 2020, more than 75% of farmers use hybrid maize seeds in cultivating their maize plants so this percentage becomes an opportunity for farmers to cultivate hybrid maize for seed production [5].
The current problems in maize seeding are there are not all the high-yielding varieties released that can be adopted by farmers or seed users; the availability of seed sources and seeds spread in the "six right" (variety, quality, quantity, time, location and price) cannot be fulfilled; the performance of seed production and quality control institutions has not been optimal; and also not all farmers use quality or certified high-yielding seeds [1].
Maize is also one of the components in the animal feed mixture.Most breeders in Indonesia use maize as one of the ingredients in their animal feed mixture.Even in some areas, maize is used as the main feed ingredient [3].The maize needed for feed industry raw materials and for independent breeders in 2045 is projected to reach 33.8 million tons or 74% of the total use of maize [6].The high demand for maize from the growing animal feed sector makes farmers easy to sell it [7].
The demand for maize as a raw material for feed will continue to increase along with the development of the poultry feed industry.In the future, with the increasing population and per capita income of the people, the consumption of poultry products will also increase, so the need for maize raw materials for feed will also increase.
Several studies explain the benefits of hybrid maize farming.Research on hybrid maize farmers in Nagari Kinali obtained an average profit of IDR 12,089,766/ha/MT with an R/C value of 2.04 so that farming is feasible [8].Farming of seed propagation of Bima Uri 20 hybrid maize seeds in Rawa Medang Village, Jambi Province is feasible and economically profitable with an R/C value of 1.69 [9].
The benefits provided to farming can be seen from the average total costs with the average total production and the average selling price.One of the most obvious things to see if farming will provide benefits is in terms of the selling price.The selling price of the harvest in the form of seed candidates will be different compared to planting hybrid maize for regular consumption.
As an effort to increase productivity, the government is making efforts to develop maize plants in every region in Indonesia that has the potential for development.So far, there are several areas known as maize production centers with a rayonization system, which consists of five rayons, such as North Sumatra, South Sumatra, Central Java, East Java, and South Sulawesi [10].One of the areas in South Sulawesi that has great potential as a producer of maize seeds, especially hybrid maize is Bone Regency [11].
The challenge going forward is how to fulfill the demand for maize as a food ingredient, feed raw material, and energy which is expected to continue increasing, making this condition an opportunity for farmers to cultivate maize as well as a very promising prospect, both in terms of demand and selling price.This research was conducted to find out the comparison of how much the financial benefits of hybrid maize farming for seed production with hybrid maize farming for feed production.

Research methods
This research was conducted in Lili Riawang Village, Bengo sub-district, and Pattimpa Village, Ponre sub-district, Bone District, Province of South Sulawesi.This research was conducted for a month, namely in June 2022.The type of research is comparative research, which will explain the comparison of financial feasibility between hybrid maize farming for seed production and hybrid maize farming for feed production.The population in this study consisted of all maize farmers conducting hybrid maize farming for seed production and all maize farmers conducting hybrid maize farming for feed production.The sample in this study was 100 farmers, from 5 farmer groups, consisting of 10 people from each farmer group.Determination of the sample using simple random sampling with the sampling technique using purposive sampling.
Data collection in this study using questionnaires and interviews.The questionnaire contains a list of questions about production costs, total production, and selling prices.The interviews were conducted by gathering farmers and asking questions according to the list of questions in the questionnaire.
The data in this study is processed by calculating the financial feasibility of farming using the feasibility ratios consisting of R/C ratio and B/C ratio.a. R/C Ratio, to assess feasibility by calculating the comparative value between revenue and costs, with the following formula [12] : The criteria for the R/C ratio are: , in principle this ratio same as R/C analysis, but in this ratio the important data is the amount of benefits [13].This ratio will explain the efficiency level of using costs, how much profit is obtained from the costs incurred [12], the formulated as follows: The criteria for the B/C ratio are: Furthermore, to know the feasibility difference between the two farms, a different test of the feasibility average (t-test) was carried out using SPSS software.Determination of the average different test results using the hypothesis: H0 = There is no difference in the feasibility average of hybrid maize farming for seed production and hybrid maize farming for feed production H1 = There is a difference in the feasibility average of hybrid maize farming for seed production and hybrid maize farming for feed production The test will be carried out by comparing the tcount value with ttable, with a 95% confidence level (α = 0.05), as follows: a.If the value of tcount < ttable, then H0 is accepted and H1 is rejected, meaning that there is no difference in the feasibility average of hybrid maize farming for seed production and hybrid maize farming for feed production; b.If the value of tcount > ttable, then H0 is rejected and H1 is accepted, meaning that there is a difference in the feasibility average of hybrid maize farming for seed production and hybrid maize farming for feed production.

Average total revenue
The average total revenue of respondents in hybrid maize farming for seed production during one growing season is IDR 20,742,615,-/ha, while the average total revenue of respondents in hybrid maize farming for feed production for one growing season is IDR 23,362,833,-/ha.The average total revenue of the respondents is presented in the following table: The average revenue farming is influenced by the average amount of production and the average selling price in one growing season per hectare.The difference in the average production of the two farms (Table 1) is influenced by the existence of a roguing process in hybrid maize farming for seed production, which aims to remove plants that deviate from the proper plant conditions.According to Azrai., et al, roguing is done to reduce plants that deviate from the average type and to reduce plants that are infected with diseases based on visual observations [14].In carrying out cultivation for seed production, the results must fulfill quality standards, such as genetic quality, physical and physiological quality, so the roguing process is required to fulfill these standards.In addition, it is also influenced by the process of detasseling, where this process causes the amount of pollen to be very small, namely only in the rows of the male parent plants so that the pollination process is disrupted and the production that is sold is only ¾ of the number of plants per hectare.According to Azrai., et al, the detasseling or removal of male flowers on the female parent plant line must be carried out before the male flowers open.After pollination at +70 HST, the male parent plant is pruned so that it does not produce.This pruning aims to avoid mixing between the F1 results and the male parent plant [14].

. Average total production cost
The average total production cost of respondents in hybrid maize farming for seed production during one growing season is IDR 10,369,114,-/ha, while the average total production cost for respondents in hybrid maize farming for feed production during one growing season is IDR 10,303,402,-/ha.The average total cost of the respondents can be shown in the following table: The production costs are divided into fixed costs and variable costs, where fixed costs consist of depreciation costs, while variable costs consist of seed costs, fertilizer costs, pesticide costs, herbicide costs, and labor costs.Overall, the highest component of production costs is labor cost.This is because effectiveness in maize cultivation, starting from the process of land preparation, planting, and harvesting, is determined by the number and productivity of the workforce.According to Saeri, the role of labor production factors in farming results is influenced by work skills, which are reflected in their productivity levels [12].The scarcity of labor used in maize cultivation will cause a delay in planting so it will affect plant growth, productivity, and product quality [15].The need for labor in agricultural cultivation depends on many factors such as the difficulty level of the soil, the size of the land, the availability of water, and pest attacks [16].
Labor costs in hybrid maize farming for seed production are 66.34% while labor costs in hybrid maize farming for feed production are 56.13%(shown in Figure 1).Research by Kurniawati et al., in 2021 at East Lombok District about the analysis of the cost structure and income of hybrid maize farming, the highest cost component is labor costs, which have a value of IDR 3,447,802/ha or 42.54% [17].Research by Adri et al., in 2019 at Rawa Medang Village, Jambi Province, obtained largest cost is labor cost, which has a cost value during one growing season of IDR 8,480,000/ha or 57.4% of the total production costs.Production costs for seed propagation of maize are much higher than production costs for consumption maize, especially costs for the price of male and female parent seeds, purchase of fertilizers, and labor costs [9].

Average total income
The average income of respondents during one growing season was IDR 10,373,501,-/ha in hybrid maize farming for seed production, while the average income during one growing season was IDR 13,059,431,-/ha in hybrid maize farming for feed production (Table 3).Based on the average total revenue for one growing season per hectare and the average total cost for one growing season per hectare, the average total income for hybrid maize farming for feed production is larger than for hybrid maize farming for seed production.The difference in income is due to the average total revenue for one growing season on hybrid maize farming for seed production which is smaller than hybrid maize farming for feed production.Research by Priono et al., in 2020 the average income earned by hybrid maize farmers in Buol Regency is IDR 6,524,882/ha/MT [18].Adri et al., in 2019 at Rawa Medang Village, Jambi Province the average profit that farmers earned from hybrid maize seeds is IDR 10,225,000/ha [9].The study by Sapitri et al., in 2019 at Batu Ampar sub-district, Tanah Laut District obtained an income of feed maize farmers of IDR 8,406,846,-/ha [19].The feasibility of farming shows that farming is profitable or not profitable to cultivate.The calculation of the R/C ratio in this study obtained a value of more than 1 (R/C > 1) in hybrid maize farming for seed and feed production.The value of the R/C ratio in hybrid maize farming for feed production is greater than that in hybrid maize farming for seed production.The value of the R/C ratio of 2.3 in hybrid maize farming for feed production means that for every IDR 1 spent by farmers, it will generate a relative profit of IDR 2.3.Meanwhile, the value of the R/C ratio of 2.0 in hybrid maize farming for seed production means that for every IDR 1 spent by farmers, it will generate a relative profit of IDR 2.0.
The calculation of the B/C ratio obtained a value of more than one (B/C> 1) for the two farms.Hybrid maize farming for feed production will provide more benefits, indicated by a B/C ratio of 1.3 meaning that the farming will provide a net benefit of 1.3 times the total costs incurred.Meanwhile, the value of B/C ratio for seed production is 1.0 means that the conditions are balanced, where the total profit is equal to the total expenditure and farming is not experiencing losses or profits.The difference in the feasibility values of the two farms is shown based on the average different test which produces a value of tcount > ttable, this means that there is a difference in the feasibility of hybrid maize farming for seed production and hybrid maize farming for feed production.The table above shows the different test values (t-test) for the R/C ratio, where the tcount value is 3.928 while the ttable value is 1.987 so that tcount > ttable, then H0 is rejected H1 is accepted.Meanwhile, the different test values (t-test) for the B/C ratio, where the tcount value is 2.387 while the ttable value is 1.987 so that tcount > ttable, then H0 is rejected H1 is accepted.Based on the results of the average difference test (t-test) for the two feasibility ratios, it means that there is a significant difference in the average feasibility between hybrid maize farming for seed production and hybrid maize farming for feed production.
Based on the feasibility calculation using the R/C ratio and B/C ratio, it can be seen that the two farms provide benefits in the future, can increase farmers' income, and are feasible to run.As in Ali et al., (2020), the adoption of hybrid maize in Pakistan has led to increased yields and income of farmers and reduced poverty so that the welfare of farmers has increased [20].Based on different test results, there is a difference in feasibility because hybrid maize farming for seed production has a large expenditure on production costs, especially on the labor component, because in cultivating hybrid maize for seed production, quality standards must be met, both genetically, physically, and physiologically.Thus, it requires different treatment compared to hybrid maize farming for feed production.
Research by Shofiyah in 2019, that hybrid maize farming in Bumi Harjo Village is feasible by obtaining an R/C ratio > 1, which is 7.1 [21].Research by Adri et al., in 2019, showed that hybrid maize seed propagation farming at Rawa Medang Village, Jambi Province obtained an R/C ratio is 1.69 [9].Research by Syuryawati et al., in 2020 found that the production of hybrid maize seeds in Central Sulawesi was profitable and feasible to develop as indicated by an R/C value of 3.56 and provided profitable income for farmers and helped provide seeds for surrounding farmers at lower prices [11].

Conclusion
Hybrid maize farming is feasible, but hybrid maize farming for feed production is economically more profitable and feasible to obtain than hybrid maize farming for seed production.The profit obtained in hybrid maize farming for feed production during one growing season is IDR 13,059,431,-/ha, with R/C and B/C ratios > 1 (2.3 and 1.3).There is a difference in feasibility between hybrid maize farming for seed production and feed production with the average different test results, where the value of t count > ttable.The different test values (t-test) for the R/C ratio is 3.928 while for the B/C ratio is 2.387.

Figure 1 .
Figure 1.Production cost of hybrid maize farming for seed production and feed production

Table 1 .
Average total revenue of farming

Table 2 .
The average total production cost of farming

Table 3 .
Average total income of farming The value of the R/C ratio was 2.0 in hybrid maize farming for seed production and 2.3 in hybrid maize farming for feed production.The B/C ratio values for both farms are 1 and 1.3.The farming feasibility can be shown in the following table:

Table 5 .
The average difference test (t-test) of farming feasibility