The Effect of Land Area, Selling Price and Farming Costs on the Income of Red Chili Farmers in Lingga Village, Simpang Empat District, Karo Regency

Abstract

This research aims to determine how much influence land area, selling price and farming costs have on the income of red chili farmers in Lingga Village, Simpang Empat District, Karo Regency, North Sumatra.The type of research used is explanatory research with a quantitative approach. This research uses primary data where data collection uses questionnaires and interviews. The population and sample in this research were 50 red chili farmers in Lingga Village, Simpang Empat District, Karo Regency, North Sumatra. This data was then processed using SPSS 22 and analyzed using multiple linear regression analysis techniques, simple linear regression and moderating variable regression using the interaction method.The research results show that fertilizer and labor partially have a positive effect on red chili production, while land area, seeds and medicines have no effect on red chili production. Simultaneously, land area, seeds, fertilizer, medicines and labor influence red chili production. Partially, red chili production has a positive and significant effect on the income of red chili farmers, while land rental costs, seed costs, fertilizer costs, medicine costs and labor costs have no effect on red chili income. Simultaneously, land rental costs, seed costs, fertilizer costs, medicine costs, labor and production costs influence red chili income. Production influences the income of red chili farmers. Selling Price as a quasi-moderating variable (as an independent variable and moderating variable) between Red Chili Production and Red Chili Farmers' Income.