Analysis of Determining The Cost of Replanting for Smallholder Oil Palm Plantations Using Annuities Model with Python

Rayyan Al Muddatstsir Fasa; Herlina Napitupulu; Sukono Sukono

doi:10.46336/ijqrm.v4i4.547

Analysis of Determining The Cost of Replanting for Smallholder Oil Palm Plantations Using Annuities Model with Python

Rayyan Al Muddatstsir Fasa, Herlina Napitupulu, Sukono Sukono

Abstract

Palm oil replanting is a necessary activity to enhance the productivity of aging oil palm trees. However, the high costs associated with replanting often create a financial burden for farmers. To address this issue, the study proposes the implementation of a contribution or levy system for smallholder farmers while their oil palm plantations are still productive, which would alleviate the financial burden of replanting. The research methodology employed includes a literature review and primary data collection through a survey of smallholder farmers, with the data being processed to create a mathematical model and simulated using the Python programming language. The results of this study include the development of a mathematical model for the levy and distribution of replanting costs, along with a simulation of the proposed system. This model could help smallholder farmers prepare for replanting costs, enhance the sustainability of palm oil production, and ultimately increase productivity.

Keywords

Oil palm replanting, mathematics model, annuity, Python

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DOI: https://doi.org/10.46336/ijqrm.v4i4.547