FEASIBILITY OF CHRYSANTHEMUM FARMING IN TOMOHON CITY

This research entitled “Feasibility of Chrysanthemum Farming in Tomohon City”. Chrysanthemum is one of floriculture commodities that people are interested and popular due to its many species and its beautiful shape and colour. Tomohon is a town in North Sulawesi Province that having potential to develop cut flower chrysanthemum. This research was intended to identify cost and income of chrysanthemum farming in Tomohon and its farming feasibility. Cost and income approach was used to identify costs and income of chrysanthemum farming in Tomohon, while feasibility of chrysanthemum farming was analyzed using R/C ratio, π/C ratio and break even point analysis. Sample was taken using simple random sampling in 4 Villages on North Tomohon Sub-district that is centre of chrysanthemum farming in Tomohon. Results of the research indicated that cost for the chrysanthemum farming is Rp 128,330,475.42 per farming per year, while its income reaches Rp 169,750,054.50 per farming per year. Result of feasibility study indicated that chrysanthemum farming in Tomohon has R/C ratio of 2.63 (R/C >1), π/C ratio of 113.58% (π/C>9%), and feasible BEP, where BEP of revenue of Rp 27,472,521.11 (farming revenue Rp 274,086,000 per year), BEP of production of 9,156 stems (production 91,362 stems per year) and BEP of price of Rp 1,142.01 per stem (price Rp 3,000 per stem). Therefore, chrysanthemum farming in Tomohon is profitable and feasibly to develop.


INTRODUCTION
Chrysanthemum is one of the floriculture commodities.The existence of chrysanthemum as an ornamental plant of commercial cut flowers is increasingly popular in various countries.It is not surprising that much research is being done to increase production so that income also increases.Viyachaia et al (2015) conducted   However, the various events did not automatically make Tomohon known in national and international level.Even, various events did not make Tomohon as national centre for decorative plant.In   In line with that, according to research from Mamahit (2016) which identifies chrysanthemum plant species in Tomohon, the results show that there are three main species of pest that attack chrysanthemum namely Liriomyza spp., Thrips spp., And Aphis spp.
Fixed cost is cost expended by farming that is not influenced by output.

Fix cost in chrysanthemum farming in
Tomohon include land tax, land rent cost, depreciation cost, and other cost (equipment service cost, electricity cost and fuel).Table 3 present average fix cost in chrysanthemum farming in Tomohon.
Table 3 indicates that depreciation cost is the most fixed cost (81.72%),while the least cost is land tax (0.42%).
Implicit cost is cost that is not directly expended by farmer but still considered as cost in farming.Implicit cost at chrysanthemum farming in Tomohon include interest of own capital, rent of own land, family labor cost and greenhouse (subsidy) depreciation cost.There were chrysanthemum farmers in Tomohon that built their greenhouse with their own capital, but there were also farmers obtaining grant of greenhouse unit.So although they did not expend cost to obtain greenhouse, it was still calculated as cost (implicit).

CONCLUSION AND SUGGESTION
Based on the research objective and results of analysis, the conclusions are: chrysanthemum cut flower farming in Tomohon is profitable based on analysis with cost and revenue approach and feasible to develop based on R/C analysis, π/C ratio analysis and BEP analysis (BEP of revenue, production and price).
Colourful flowers with pleasant fragrance have been a source of attraction to mankind.Flowers provide pleasure through enlightening colours and spreading fragrance.Therefor, man has always taken support of flowers as a token of expression of kind sentiments on number of occasions and consequently, ever increasing demand of flowers has made the floriculture of paramount importance for conducting economic evaluation and marketing investigation.Ornamental plants (floriculture) can be found in the form of ornamental plants of pots and cut flowers.Cut flowers are one of the agricultural commodities that can help improve the income and welfare of farmers.
accumulation of salinity when production in the same area was practiced continuously.Soilless culture was cultivation technique independent from soil condition.The purpose of the research was to determine the growth of chrysanthemum grown in two soilless system included tray system and trough system.The results is the growth and quality of flowers produced in the tray and the trough system were similar.No significant differences in flower characteristics were observed between the two system except for flower color.Chrysanthemum produced in both soilless systems received the same price for grade A as soil grown chrysanthemum.
To improve the production and quality of chrysanthemum flower in Indonesia, the Center for Research and Development of Horticulture has conducted research and assessment program of chrysanthemum plant management implementation in several provinces of chrysanthemum production center.Management of chrysanthemum integrated plants includes (a) the use of varieties and quality seeds; (b) the creation of a protected house and its facilities; and (c) cultivation process (Ridwan, 2012).Due to increased demand, there is opportunity of cut flower chrysanthemum agribusiness that should be developed outside the development centre that also has potential.Tomohon is a town in North Sulawesi Province that having potential to develop cut flower chrysanthemum.The town is at 700-800 masl with temperature of 30 o C at day and 23-24 o C at night.In addition, Tomohon is located in Wallace line.In consequent, some Indonesian specific decorative plants grow in this town.Therefore, with supporting natural condition, it is normal when floriculture commodity particularly chrysanthemum is good to develop.C h r y s a n t h e m u m p r o d u c t i o n in Tomohon continuously increases.It is normal due to one of agricultural potentials developed by Tomohon people is floriculture.So, flower is made as icon of the region with motto flower town.Decorative flower in Tomohon is part of its culture.Every year flower festival was held that is followed by local, domestic or foreign florists.Since 2008, Tourism and Creative Economy Ministry in cooperation with various parties held event entitled "Tomohon International Flower Festival" that early it was national level, which grow to international scale in 2010, with various theme in each festival.Even, the festival is included in calendar of event in Tourism and Creative Economy Ministry.The event is effort to promote Tomohon as flower town and encourage increase in agriculture and tourism sector and give contribution for local economy.
addition, farmer did not have capability in accessing source potential including capital and technology that increasingly develop to obtain feasible income.The resource usage was not done in integrated manner; it was done by sub sector.Moreover, implementation of published program was not suit the need of agribusiness actor, particularly farmer.Technology used was simple that affected quantity and quality of floriculture product that in turn had effect on income and welfare of farmer.With such condition, supply from other regions cannot be avoided, particularly at big event such as TIFF.In a paper written by Pangemanan (2011), the results indicated that cut flower chrysanthemum farming in Kakaskasen Dua Village was profitable, with production cost of Rp. 3,242,853.74farmer got revenue of Rp. 14,375,000.00 and income of Rp. 11,132,146.25.Based on R/C ratio analysis indicated that the farming business is feasible with R/C 4.43.The results of the research by Deltu (2016) indicated that red onion, potato, and tomato farming in Nagari Alahan Panjang was feasible and profitable to develop.In red onion farming, BEP production was 503.52 kg/ha and price BEP Rp 2,406.12/kg,with R/C ratio 3.27 and π/C ratio 301.98%.For potato farming, average production BEP was 767.31 kg/ha and price BEP 2,186.60/kg, with R/C ratio 4.06 and π/C ratio 305.67%.For tomato farming, average production BEP was 1,483 kg/ha and price BEP was 1,463/kg, with R/C ratio 2.48 and π/C ratio 148.22%.A c c o r d i n g t o r e s e a r c h f r o m Masyhudi (2009), the results showed that various varieties of chrysanthemum flowers can flourish and proved the cultivation of ornamental plants can improve the welfare of farmers.The economic analysis of chrysanthemum farming in 2005 showed that B/C ratio and R/C ratio were 1.05 and 2.05 respectively.With increasing farmer experience the B/C ratio and R/C ratio were respectively to 1.47 and 2.47 in 2006, and then increased more again in the early 2007 with B/C ratio = 2.12 and R/C ratio = 3.12.Thus it can be concluded that the cultivation of cut flower chrysanthemum plants is very profitable and feasible to be developed in the Special Region of Yogyakarta.Problems in this research were formulated by focusing on the cost structure and income of chrysanthemum farming in Tomohon and the feasibility of chrysanthemum farming in Tomohon.According to the formulated problems, the objective of the research is to identify cost and income of chrysanthemum farming and its feasibility in Tomohon.METHODS Basic method used in this research was descriptive analytical method, by formulating and interpreting data to give clear description.This method was done by taking sample from a population and focus attention on fact finding as actual condition.Agro Ekonomi Vol.29/No.1, Juni 2018 122 Data obtained was compiled, analyzed, and explained to obtain explanation on occurring phenomena.This research was done in Tomohon in August to September 2017.Location was selected purposively at 4 villages in Tomohon Utara Sub-district.The four villages were Kakaskasen, Kakaskasen I, Kakaskasen II, and Kakaskasen III that were centre of production and development area of cut flower chrysanthemum in Tomohon, with potential floriculture area of 100 ha.P o p u l a t i o n i n t e n d e d i n t h i s research was all chrysanthemum farmers distributed in the four villages.From 259 chrysanthemum farmers in population, 26 farmers were taken as respondent selected with simple random sampling.In this research data consisted of primary and secondary data.Data collected in this research was cross sectional one.Data was collected with: 1) Observation technique, which collecting data through direct observation in research site over object studied to identify actual condition; 2) Interview that collecting data by doing direct interview with respondent (farmer) using questionnaire; and 3) Recording that is data collected by recording information and existing data and available from stakeholders related to the problem studied.Cost considered in this research is cost actually expended in chrysanthemum farming including fixed cost and variable cost.Total cost may be formulated as follows (Suratiyah, 2015).TC = TFC + TVC Notes: TC = Total Cost TFC = Total Fixed Cost TVC = Total Variable Cost Total revenue is farmer revenue from chrysanthemum farming.It is obtained by multiplying chrysanthemum production with selling price per one chrysanthemum unit.The formula is as follow.Cost (explicit) Chrysanthemum farming profit is difference between revenue and explicit and implicit cost from chrysanthemum farming or difference between chrysanthemum 123 Agro Ekonomi Vol.29/No.1, Juni 2018 production yield income and implicit cost with following formula.π = TR -TC (exsplicit + implicit) π = I -TC (implicit) Notes: π = Profit TR = Total Revenue TC = Total Cost (explicit+implicit) R/C ratio analysis or efficiency analysis is comparison between revenue and total cost per farming.R/C ratio = TR / TC R/C ratio = Y .Py / (TFC + TVC) Fixed Cost TVC = Total Variable Cost Test criteria of R/C ratio is as follow: R/C > 1, the chrysanthemum farming is efficient and profitable R/C = 1, the chrysanthemum farming is at BEP R/C < 1, the chrysanthemum farming is not efficient π/C ratio or capital productivity is comparison between profit and total cost.In mathematical term it is written as follow.π/C ratio = π / C x π/C ratio is: π/C ratio > effective bank interest, then the business is feasible to develop π/C ratio < effective bank interest, the business is not feasible to develop Break Event Point (BEP) analysis include BEP of revenue (Rp), BEP of production (stem), and BEP of price (Rp/ stem), stated in following formula: BEP (revenue) = FC / (1 -VC / R) type of cut flowers are in great demand of the market and consumers.Demand for these products from year to year continues to increase and in 2012 production reached 384,215,341 stalks.The increase was also influenced by changes in market and consumer preferences on chrysanthemum produced by farmers and entrepreneurs (Nurmalinda, 2014).In 2014, Directorate General Horticulture stated that cut flower chrysanthemum rank first position over total production of national cut flower (57.67%) followed by rose (23.36%), tuberosa (14.12%) and orchid (2.66%) (Balithi, 2016).Similarly, demand and production for chrysanthemum flower in Tomohon increased every year.Data from the Agriculture Office of Tomohon City indicate that chrysanthemum production is likely to increase: 1,764,100 stalks (2010), 1,440,000 stalks (2011), 3,840,000 stalks (2012), 2,880,000 stalks (2013), 4,448,000 stalks (2014), and 4,419,764 stalks (2015).With the potential of Tomohon floriculture in the area of 100 ha, there is a great opportunity in its development.For that we need to know the cost and income in chrysanthemum farming and feasibility of farming.Cost is important component in farming.Cost is classified into fix cost and variable cost.Fix cost in chrysanthemum farming are land rent cost, land tax, equipment depreciation, and other costs (equipment service cost, electricity cost and fuel).Variable costs consist of cost for production supply such as seed, fertilizer, pesticide, and labor cost.Fix cost and variable cost above is explicit cost in farming.Explicit cost is cost actually expended in chrysanthemum farming.In addition, there is also implicit cost that should also be considered in farming.Implicit cost is cost that is not directly expended by farmer.Implicit cost in this research include labor cost in household, rent of own land, interest of own capital and greenhouse cost of aid received by farmer without expending cost.Variable cost is cost fluctuating according to production level.Variable cost consist of worker and production supply (seed, fertilizer and pesticide).Worker cost in chrysanthemum farming in Tomohon include land preparation cost (land processing and basic fertilizer), planting cost, maintenance cost (following fertilizer and pesticide spray), watering, weeding, disbudding and harvesting.The worker cost is non-family labor that is explicit cost.While familial worker cost is included in implicit cost.Average labor cost of chrysanthemum farming in Tomohon is presented in table 1. Table 1 indicates that 27.21% of non-family labor cost is absorbed in land preparation activity.It is due to most farmer used non-family labor to process their land.Preparation activity Agro Ekonomi Vol.29/No.1, Juni 2018 took 2-4 working days and dominantly was done by male worker.Family labors were most intended on watering that was done routinely every day.Harvest cost was the least cost on non-family labor cost, only 2.38%.Harvest activity did not take relatively long time, but harvesting was done when there was purchase from consumer.Chrysanthemum flower harvest in Tomohon had no grading system, so price of chrysanthemum flower was relatively same.On family labor, planting activity indicated least labor because farmer use more non-family labor to plant and this activity is relatively fast, usually take one day, where incoming seed should be planted directly.Production supply cost is cost expended to support production of farming.The cost depends on production level that will be achieved, the greater production the greater production supply.Production supply cost is variable cost and explicit cost including seed cost, fertilizer cost and pesticide cost to control pest and disease.Average production supply cost of chrysanthemum farmer in Tomohon is presented in table 2.
Chrysanthemum farming is feasible to develop, farmers should continue to cultivate chrysanthemum as a source of income.Farmers need to increase production both quantity and quality, so that income increases.To increase the production (quantity) of chrysanthemum, farmers need to optimize the volume of planting per greenhouse (intensification), increase survival rate, and do the addition of greenhouse unit (extensification).To improve the quality of chrysanthemum, farmers need to improve quality in accordance with Good Agricultural Practices (GAP) and Good Handling Practices (GHP).Other then that, there is a need for cooperation from all stakeholders related to the development of chrysanthemum farming such as farmers, farmer groups, chrysanthemum associations, government, florist, and other stakeholders.

Table 1 .
Average Labor Cost of Chrysanthemum Farming per year inTomohon (2017)

Table 8
BEP of price was Rp 1,142.01 per stem.In fact, price per stem was Rp.