Paprika is one of the potential foreign vegetable commodities to be developed in Indonesia and has high economic value, as evidenced by the demand for peppers in the domestic market. Consumer demand for peppers is always stable or increasing [1]. In this situation, Paprika also has good development prospects in the future. Seeing the bright prospects of peppers adds to the motivation of farmers to research, study and cultivate this plant in order to develop agribusiness and agro-industrial systems. Farmers' production can increase if the farming system is implemented correctly and efficiently. This affects the decision of farmers to choose a cultivation system on their production land, ie. to maximize the production of peppers.

Paprika production data obtained from BPS for the last 5 years, namely 2017 to 2021, namely the provinces of East Java, Central Java, West Java, NTT and Bali. In these five provinces, East Java province becomes the largest paprika center every year. The calculation of paprika production above can explain the high demand for peppers in East Java Province. It can be said that East Java Province has a great influence on paprika production and meeting the needs of local consumers and paprika exports in Indonesia [2].

Based on Table 1, over the last five years, paprika production in East Java has fluctuated in the area of harvest and yield of peppers. The main problem in the cultivation of peppers is the increase in production land area but the production of peppers decreases, this is thought to be due to an inefficient cultivation system so that paprika production is less than optimal. Increasing paprika production in the country needs to be done to meet the needs of the community. Therefore, special efforts are needed to increase and stabilize paprika production to meet the demand for peppers in the country. The use of appropriate and efficient agricultural cultivation systems can also increase agricultural production and income. The latest technology to be applied is hydroponic technology [3].              

The application of the hydroponic system is considered more effective in increasing paprika production in Tutur District, this is in line with research conducted by Raffa [4], which said that the hydroponic system is a very effective production system, this system 

was developed based on the understanding that if plants get optimal care conditions then the potential to get optimal production results will be achieved.

Table 2 shows that, Tutur District, Pasuruan Regency is one of the largest paprika producing areas in East Java, where some farmers have used hydroponic systems in pepper farming activities. According to Ardiana's research [5], conducted in the research area, people are reluctant to implement hydroponic systems because of higher production costs compared to conventional systems, as well as high farming risks so that farmers who do not dare to take risks to implement hydroponic systems. However, with high farming risks, most farmers have applied hydroponic systems to pepper farming. This shows that there are various factors that influence farmers' decisions in implementing hydroponic systems. Although the majority of farmers have implemented hydroponic systems, in reality the yield of peppers in the last five years has fluctuated. The farmers' harvest greatly affects the income received by farmers, therefore it is necessary to calculate income so that hydroponic and non-hydroponic farmers know the benefits obtained in breeding peppers.

Table 1: Paprika Productivity in East Java 2017-2021

Source: BPS East Java Year 2021

Table 2: City/Regency Level Paprika Production (Quintal)

Source: BPS Jawa Timur (2021)

Table 3: Characteristics of Respondents of Pepper Farmers

Source: Primary Data, 2022

From this background, researchers want to know the reasons for farmers and the income of pepper farmers. The objectives of this study are:

• Describe the reasons farmers apply the paprika cultivation system hydroponically and non-hydroponically 

• Analyze the income obtained by farmers in using hydroponic and non-hydroponic systems in paprika farming in Tutur District, Pasuruan Regency

This research was conducted in Tutur District, Pasuruan Regency based on the consideration that the area is one of the largest and best paprika producing areas in East Java. The study was conducted from January - February 2023. The data used in this study are primary data and secondary data. Primary data were obtained directly from the field, namely from interviews with respondents who used questionnaires. Secondary data were obtained from various Agricultural Extension Centers (BPP) of Tutur District, Pasuruan Regency.

The population in this study is farmers who farm peppers in Tutur District, Pasuruan Regency. The total number of cayenne pepper farmers is 30 farmers. Farmer sampling using the census method uses the entire population to be sampled, which is as many as 30 farmers. According to Sugiyono [6], census sampling is a sampling technique if all members of the population are made respondents or samples. This is done when the population size is relatively small, or the study makes generalizations with very little error. So that the sample used in this study is the entire paprika farmers in Tutur District.

The data analysis method used in this study is descriptive analysis to describe the reasons for farmers to apply hydroponic and non-hydroponic systems to pepper farming. And income analysis to find out the income received by farmers during one growing season.

To calculate the cost of farming, the formula is as follows:

TC = TFC+TVC

Information

• TC: Total Cost of Paprika Farming (Rp/ Planting Season) 

• TFC: Total Fixed Cost of Paprika Farming (Rp/ Planting Season) 

• TVC: Total Variable Cost of Paprika Farming (Rp/ Planting Season)

To calculate farm revenue using the following formula:

TR = P x Q

Information

• TR: Total Revenue (Rp/ Planting Season) 

• P: Production Price of Paprika Farm (Rp/kg) 

• Q: Total Production produced (Kg / Growing Season)

To find out the income received by paprika farmers using the following formula:

Π = TR – TC

Information

• Π: Paprika Farm Income (Rp/ Planting Season)

• TR: Total Paprika Farm Revenue (Rp/kg) 

• TC: Total Cost of Paprika Farming (Rp/ Planting Season)

Characteristics of Respondents of Pepper Farmers

Farmers in managing their farms, can determine what commodities will be cultivated on the land they own. However, the determination of commodities to be planted is inseparable from factors that can affect pepper farming, including age, land area, level of education, participation of farmer groups and farming experience. The characteristics of pepper growers can be seen in Table 3.

The number of farmer respondents was 30 people. Based on Table 3 it can be seen that age is one of the most important factors for farming. The age of the most farmers to do paprika farming is at the age of 30-50 years, the majority of hydroponic pepper farmers are productive age farmers, namely between the ages of 30 to 50 years. The majority of paprika farmers in, Tutur sub-district have used modern technology in their farming and can accept changes in the process of farming peppers. Paprika farming is included in farms that must use semi-modern technology, therefore the average paprika farmer is of productive age because those with that age understand more about new technology. Unlike hydroponic pepper farmers, non-hydroponic pepper farmers are farmers who have just started farming in agriculture, namely pepper commodities.

Farmer education is in the form of formal and non-formal education. This research level of education is devoted to formal education. In Table 3, it can be seen that in general, the education level of respondents is graduated from junior high, high school and college. This shows that farmers in, Tutur District have a fairly high level of education. The awareness that farmer respondents have causes them to always prioritize education for themselves or their children. The high level of education that farmers have makes it easier and more open to receive any information that aims to increase income.

Farming experience will influence farmers in managing their farms. Farming experience is said to have experienced if you have done farming >12 years. It is said to be enough if farmers do farming for 6-12 years. For farmers who do farming <6 years, it is categorized as less experienced. In Table 3, it can be seen that all respondents of paprika farmers, the majority of whom have experience in farming so that they can increase the income of pepper farmers. 

Land area is an area of rice fields or tegal used to plant crops in a certain season. The land owned by these farmers is private or individual land. So the farmers in this study are owner and cultivator farmers. The majority of the land area owned by farmers in this study is narrow land because there is a system of heirs with relatives.

Reasons Farmers Farm Peppers

Reason is the process of delivering decisions that have been chosen by someone in carrying out an activity. In paprika farming in, Tutur District, there are 2 cultivation systems in paprika farming, namely hydroponic systems and non-hydroponic (conventional) systems, therefore this study will explore the background of farmers in choosing a cultivation system in pepper farming. Only a small percentage of farmers choose to continue cultivating peppers in open or non-hydroponic land, while the majority of paprika farmers in, Tutur District apply a hydroponic system in the greenhouse.

Reasons Farmers Apply Hydroponic Systems

According to Fatchiya et al. [7], said that with agricultural technology, it is expected that the quality of agricultural products will increase and make it easier for agricultural sector managers to obtain maximum results. Based on the results of the study, there are 3 reasons why farmers apply a hydroponic system in the cultivation of peppers, namely:

Hereditary Business

Based on the results of research, the main reason why farmers apply hydroponic technology to paprika farming is that the business carried out is inherited from parents, so that farmers have the motivation to develop the hydroponic pepper business. The level of motivation of farmers to maintain and develop hydroponic systems in paprika farming is included in the high category because as many as 20 farmers or as many as 70%. Referring to these data, it can be said that the level of motivation of farmers in maintaining and developing hydroponic systems is high, this is because the income obtained in farming for a period of 12 to 14 months can meet the needs of life for the family until the next planting season. In addition, a hydroponic system can minimize the risk of crop failure because plants are resistant to pests and diseases, so that the harvest is more abundant and of higher quality.

The Existence of the Ministry of Agriculture Program

Based on the results of the study, the majority of hydroponic pepper farmers received training and also assistance from the Ministry of Agriculture in the form of the YESS (Youth Entrepreneurship and Employment Support) program. The program empowers paprika farmers to continue to develop their farming. From this program, the ministry provides business funding assistance in the form of grant funds for farmers who want to develop their paprika farming. The majority of paprika farmers who implement the hydroponic system are members of farmer groups fostered by the Agricultural Extension Agency (BPP) of Tutur District.

Family and Social Ties

The existence of family ties between farmers with one another is a special reason for farmers to apply hydroponic systems to pepper farming. in, Tutur paprika sub-district with a hydroponic system, the majority still have relatives or family ties in the membership of the paprika farmer group.

Reasons Farmers Don't Use Hydroponic Systems

From the results of the study, it is known that there are 2 reasons why farmers do not apply the hydroponic system to the cultivation of peppers, namely:

Capital Limitations

The main factor that is the reason farmers do not develop their farms is the limited access of farmers in finding sources of capital, especially for farmers who have small and narrow land, which is experienced by most rural communities. Therefore, there is often a lack of costs which is an obstacle for farmers when developing and managing farms [8]. In the cultivation of horticultural crops of vegetable crops, farmers need a fairly high business capital, so farmers prefer to plant parika on open land rather than planting with hydroponics in a greenhouse, besides that non-hydroponic pepper farmers have farms other than peppers. The majority of non-hydroponic pepper farmers have at least 2 types of commodities so that the capital needed is twice as much and prefers to cultivate in open land.

Mixed Farming

Based on observations, non-hydroponic pepper farmers in, Tutur District have mixed farming both in agriculture and animal husbandry. Mixed farming is a business in agriculture where there are two or more types of crops grown. Generally, non-hydroponic pepper farmers have at least 2 types of commodities that are cultivated, namely peppers and apples. In addition, there are also farmers who have a mixed business between agriculture and animal husbandry, namely dairy peppers. Non-hydroponic pepper farmers are not only focused on pepper commodities, so farmers think instead of investing to build a hydroponic system it is better to open another business.

Analysis of Paprika Farm Income

Analysis of paprika farming income in, Tutur District is obtained by calculating the difference between paprika farming income and budgeted production costs from 2022 to 2023. Income is very important because it is used as the main source to meet the needs of daily life. Farm income is obtained using income analysis which calculates the difference between farmers' income and farm costs incurred. Revenue analysis includes revenue analysis of fixed costs and analysis of variable costs. The following is the calculation of paprika farming revenue and paprika farming costs in Tutur District, Pasuruan Regency:

Farm Costs

Farm costs are the total costs used by farmers when the production process of pepper farming in one planting season starts from land processing to the process of harvesting peppers. The cost of farming consists of fixed costs and variable costs, the following are the total costs of hydroponic and non-hydroponic pepper farming:

Fixed Costs

Fixed costs are costs that are relatively fixed in total, always incurred even though the production obtained is small or much [9]. Therefore, fixed costs are not influenced by the quantity of production obtained. In hydroponic and non-hydroponic pepper farming in Tutur District, fixed costs include rental costs for land, permanent employee costs, irrigation costs and equipment depreciation costs. The average value of fixed costs paid by respondent farmers in hydroponic and non-hydroponic pepper farming per hectare in Tutur District can be observed in the table 4.

Based on table 4 above, it is known that the average fixed cost of hydroponic pepper farming in each hectare of land, which is Rp. 84,220,648. with details of fixed labor costs is the largest cost incurred at Rp. 41,558,000, while for the smallest expenditure is land rent of Rp. 8,004,446. For non-hydroponic pepper farming, the average cost incurred is smaller at Rp. 8,456,626 for each hectare of land. The largest fixed cost incurred is land rental costs amounting to Rp. 5,450,566, while the smallest expenditure is irrigation costs amounting to Rp. 218,067.

Variable Costs

In Soekartawi research [9], explained how to calculate the profit from farming, namely by calculating the entire expenditure including labor and land rent (if renting land). In hydroponic pepper farming in Tutur District, variable costs include the cost of pestisiada, fertilizer, seeds, polybags, labor, raffia rope and planting media costs. Variable costs for non-hydroponic peppers consist of fertilizer costs, seeds, pesticides, bamboo supports and labor costs. The following average variable costs paid by respondent farmers in hydroponic and non-hydroponic pepper farming per hectare in Tutur District can be observed in the table 5.

Based on the table above, it can be seen that the average variable cost per hectare in hydroponic pepper farming is Rp. 227,963,950. The largest cost used for Labor is Rp. 183,992,320. While the smallest expenditure in the form of polybag costs is Rp. 8,142,296. In the variable cost of non-hydroponic peppers, all variable costs are Rp. 141,462,191, with the largest cost in the form of labor costs of Rp. 68,584,291 and the smallest cost in the form of the cost of purchasing raffia rope which is Rp. 393,666.

Farm Revenue

Revenue to a farm is all the revenue obtained by farmers from the sale of peppers in one planting season. Revenue is obtained from the sale of products to middlemen. At the sale of peppers use units of kilograms. Farmers sell peppers to middlemen in the form of plastic bags containing 10 kilograms. Usually 1 kg of peppers contains 5-6 pieces and is usually sold for Rp. 22,000 for each kilo. The following is a detailed table of receipts of paprika farming costs:

The average value of revenue for each paprika farmer in, Tutur sub-district can be known by dividing the total value of revenue by all land area. The production value issued by hydroponic pepper farmers is 33,404.5 kilograms, the revenue value is Rp. 734,899,407 per hectare. As for the production value of non-hydroponic peppers of 12,764 kilograms and the revenue value of Rp. 280,808,000 per hectare.

Table 4: Average Fixed Cost of Paprika Farming in Tutur District 2023

Source: Primary Data, 2023

Table 5: Average Variable Cost of Paprika Farming in Tutur District 2023

Source: Primary Data, 2023

Table 6: Average Revenue of Paprika Farming in Speech District 2023

Source: Primary Data, 2023

Table 7: Average Income of Paprika Farming in Tutur District 2023

Source: Primary Data, 2023

Farm Income

The average value of income is the net profit earned by pepper farmers. It is known through the reduction of revenue results with the total cost incurred when one season grows peppers. The income is used by farmers to meet their living needs, be saved and for the educational needs of their children. The average value of income earned by paprika farmers in Tutur District per hectare can be observed in the table 7.

The average value of income per hectare of hydroponic and non-hydroponic pepper farmers is obtained by subtracting the average value of revenue by the average value of overall costs. From the results of this calculation, the income obtained by hydroponic pepper farmers in Ujar sub-district per hectare in one crop season (12-14 months) is Rp. 442,726,660, while the income of non-hydroponic pepper farmers in, Tutur sub-district per hectare in one year is Rp. 130,880,060. The average income difference between hydroponic and non-hydroponic pepper farmers is Rp. 311,846,600. Based on these results, it can be seen that although the income received by hydroponic pepper farmers is greater than the income of non-hydroponic pepper farmers, the two cultivation systems are still mutually beneficial. So based on the explanation above, it was found that the hypothesis proposed was rejected, so that the results were obtained that hydroponic and non-hydroponic systems Each is mutually beneficial.

Based on the results of the research and discussion described, it can be concluded that:

• The reasons farmers apply hydroponic systems are hereditary farming, the existence of the Ministry of Agriculture program and the existence of family and social ties. While the reason farmers do not apply a hydroponic system is because of limited capital and mixed farming or farmers have more than 1 commodity cultivated

• Based on the income analysis above, it is found that the average income received by farmers in doing hydroponic pepper farming is Rp. 442,726,660. Meanwhile, the average income received by farmers in doing non-hydroponic pepper farming is Rp. 130,880,060. Both systems are equally profitable, but with the same area or scale of business the revenue and benefits obtained are very much different

Suggestion

Based on the results of research and discussion that have been described, as for the suggestion to be conveyed, namely paprika farmers in Tutur District, Pasuruan Regency must be more active in activating existing farmer groups and continue to foster a sense of kinship so that hydroponic and non-hydroponic pepper farmers who have not participated in farmer groups, so that in the hope of increasing paprika production in Tutur District, Pasuruan Regency and create as the center of peppers in East Java.

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