Agroecological Zoning and Financial Viability of Citronella (Cymbopogon nardus) Farming: Integrating Elevation, Economic Performance, and Farmer Welfare

Abstract

This study aims to analyze the effect of altitude on the performance of citronella farming and to evaluate its financial viability in supporting farmers’ welfare. The study employs a quantitative approach using a survey design among citronella farmers across various elevation zones: 200–400 m asl, 400–600 m asl, 600–800 m asl, 800–1,000 m asl, 1,000–1,200 m asl, and >1,200 m asl The data were analyzed using income analysis, Break-Even Point (BEP), Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and sensitivity analysis. The research results indicate that elevation significantly affects the productivity and financial viability of citronella farming. The 800-1,000 m asl elevation zone offers the most optimal conditions, with an NPV of Rp.100,373,958, an IRR of 108%, and a payback period of 1.03 years. Conversely, at elevations of 200-400 m.a.s.l., the NPV is relatively low and indicates a higher level of risk. Analysis of minimum land requirements shows that at the optimal elevation, farmers need only about 0.21 ha of land to meet the Decent Living Standard (KHL), far less than the 1.96 ha required at lower elevations. Sensitivity analysis indicates that farming at optimal elevations is more resilient to rising costs and declining yields than farming at lower elevations. Therefore, the development of citronella farming should take agroecological zoning into account as a basis for policy-making and strategies to improve farmers’ well-being.