Dynamic Simulation Model to Improve the Economic Sector of Maize Cultivation

Maize farming in Indonesia, particularly in East Java, has witnessed increased production, yet this growth has not translated into greater profitability. This study aims to utilize system dynamics modeling to assess the economic viability of maize farming by investigating the potential impacts of various factors on farmer profitability. Our findings reveal that despite the growth in maize production, profitability has declined due to rising living costs, jeopardizing the economic sustainability of maize farming. Analyzing the monthly minimum living cost per person through simulation results demonstrates a concerning trend. Since 2011, income generated from maize farming has steadily declined, diminishing the number of family members that can be financially supported by this income. Moreover, in 2023, the income generated from maize was only sufficient to cover the basic needs of one or two individuals, falling short of supporting a typical family. Therefore, several strategies are necessary, including the development of value-added products such as semi-cooked or ready-to-eat foods, and the implementation of simple, cost-effective technologies, such as vacuum packaging. By implementing these strategies, the government can empower small-scale corn farmers to improve their livelihoods, increase their income, and make a significant contribution to the agricultural sector.