Farm Diversification And Factors Associated With Income Among Chili Pepper-Tomato Farmers in South Minahasa

Yolanda Pinky Ivanna  Rori; Jenny  Baroleh; Jelly Ribka Danaly  Lumingkewas

doi:10.35791/jat.v7i3.70356

Authors

Yolanda Pinky Ivanna Rori Sam Ratulangi University
Jenny Baroleh Sam Ratulangi University
Jelly Ribka Danaly Lumingkewas Sam Ratulangi University

DOI:

https://doi.org/10.35791/jat.v7i3.70356

Keywords:

Crop diversification, Farm income, Horticulture, Simpson Diversification Index, Smallholder farmers

Abstract

Smallholder horticultural farms frequently combine crops to reduce exposure to production and market risk, yet a physically diversified farm may remain financially dependent on a single commodity. This study quantified diversification of chili pepper and tomato farming and examined socioeconomic and production factors associated with farm income in South Minahasa Regency, North Sulawesi. A cross-sectional survey of 30 farmers was conducted from March to November 2026. Diversification was assessed using the Simpson Diversification Index (SID) and Herfindahl-Hirschman Index (HHI), calculated separately for land allocation and net farm-income shares. Net farm income was defined as total revenue minus total production cost. Multiple linear regression evaluated associations of cultivated land area, formal education, farming experience, and labor use with farm income. The reported 50:50 land allocation produced an SID of 0.500, representing maximum evenness for a two-crop system. In contrast, reported net income was IDR 24,114,200 from chili pepper and IDR 1,975,733 from tomato per planting season, corresponding to income shares of 92.43% and 7.57%, respectively. These shares yielded an HHI of 0.860 and income-based SID of 0.140, indicating strong financial concentration in chili pepper. Land area, education, farming experience, and labor were each positively associated with farm income (p < 0.05), while the overall model was significant (F(4, 25) = 1147.00, p < 0.001; R² = 0.995). The findings show that balanced land allocation does not necessarily generate balanced income and suggest that diversification decisions should consider both physical cropping patterns and financial contribution.

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