Different Cost Pathways, Similar Viability: Evidence from Farm-Budget Comparisons of Rice Farming in Karawang and Indramayu

This study compares the economic performance of rice farming in two major production centers in West Java, Karawang Regency and Indramayu Regency (Indonesia), using a farm-budget framework and an independent two-population mean comparison approach. Primary data were collected through multistage stratified random sampling (regency–subdistrict–village–farmer group), yielding 99 respondents (Karawang = 54; Indramayu = 45). The analysis consisted of (1) descriptive statistics reported as mean ± standard deviation (mean ± SD) for revenue (TR), total production cost (TC) and its components, farm income (π), and feasibility ratios (R/C and B/C); and (2) an independent two-sample pooled t-test (equal variances) at α = 0.05, complemented by 95% confidence intervals for mean differences. Results indicate no statistically significant differences in aggregate indicators—main production, revenue, and total production cost—between Karawang and Indramayu (p > 0.05). Farm income and the feasibility ratios (R/C and B/C) are also not significantly different at the 5% level (p > 0.05), although mean values tend to favor Karawang. In contrast, a strong and highly significant difference is observed in output price (higher in Karawang; p < 0.001) and in cost composition: land rent is significantly higher in Indramayu (p < 0.001), whereas seeds, tractor hire, fertilizers, pesticides, and labor costs are significantly higher in Karawang (p < 0.05). These findings suggest that overall viability may converge across locations, while the underlying “value formation” and “cost pathway” mechanisms differ substantially, implying the need for location-specific improvement strategies targeting the dominant leverage points in each regency.