Students of the Accounting Department, Faculty of Economics and Business, Universitas Brawijaya, went directly to Klampok Village as one of a series of activities from the lecturer community service program with the theme “Assistance in Formulating Production Costs and Selling Prices in Farmer Groups (Gapoktan)”. The data collection was carried out on (9/7-11/7/2024) and (27/7-28/7/2024) with the target of data collection being rice farmers in Krajan Hamlet, Klampok Village, Singosari District, Malang Regency, East Java. The members of Group 20 PKM Department of Universitas Brawijaya are Diajeng Cahyaningtyas, Mayva Najwa Sabila Syaravina, Nafia Zahra, Nikolas Benoni Asmoro and Tsara Zahira together with the guidance of lecturers Mr. Dr. Aji Dedi Mulawarman, S.P., M.SA. and Mrs. Dr. Virginia Nur Rahmanti, SE., MSA., Ak.
This activity is a community service program (PKM) organized by the Faculty of Economics and Business, Universitas Brawijaya. The limited understanding of farmers regarding the importance of calculating the correct HPP and determining the optimal selling price is the background for choosing this community service theme. This is because many farmers have not recorded production costs in detail and have not implemented effective internal controls, such as anticipating changes in weather and pest attacks. As a result, farmers often experience losses because they do not know the actual production costs and have difficulty in determining competitive selling prices.
Data collection activities were carried out using the interview method which began by asking questions about the identities of the farmers such as name, rice field status, home address, rice field location address, land status and land area. After that, it was continued with questions during the planting period, maintenance period and harvest period, such as what raw materials were used, how many workers were employed and overhead. Questions regarding the problems faced were also explored to add information.
“Well, yes, Mr. Tari’s land with the amount of surface land, the yield is high because Mr. Tari’s land is flat, while my land has a slope, so the income is very different, if it’s good there, it’s 4 tons, and there are 3000, only results 1 ton, it’s very different,” said Edi, one of the rice farmers in Klampok Village, Thursday (11/7/2024).
The ultimate goal is to increase farmers’ awareness of the importance of calculating HPP and its application, so that farmers in Klampok Village can increase their income, make better business decisions, and ultimately improve their welfare.
With this service, it is hoped that farmers will gain new insights regarding the calculation of rice production costs. Through further understanding, farmers can know certainly the cost of producing their rice, so they can achieve greater profits. This understanding also allows farmers to save on costs incurred. Cost efficiency will also provide greater benefits and improve farmer welfare.
Therefore, the Accounting Department’s PKM program, which includes calculating the cost of production for each farmer, is expected to achieve its main objective, which is to increase farmers’ understanding of HPP. Thus, farmers will be more concerned about their finances and be able to manage their finances better. This program is also expected to encourage farmers’ interest in achieving financial balance in the future. (*/UB PR/ Trans. Iir).
