Risk Mitigation of Red Chili Production in Besakih Village, Bali, Indonesia

Red chili is one of the strategic vegetables.  Farmers often experience uncertainty in the farming production of red chilli. This study aims to identify the source, types, and risk mitigation; analyze the level of risks production; and optimal production area. Measuring the level of risk production using the coefficient of variation; source identification and risk mitigation were qualitatively and descriptively analyzed; and the optimal area is determined using the formula ABC of the production function. The study used secondary data and primary data cross section. Respondents and informants deliberately determined. Respondents are farmers who do farming red chili three cropping seasons since February 2015 till July 2016.

The results showed the source of risk is the physical environment, the operational environment, and competitors. Mitigating risk is diversified; set the pattern and timing of planting; farming in an optimal land area​​;  making nursery beds; improve farming techniques; discuss commodity and cultivation techniques are good at farmer group meetings. The risk level is relatively high showed by the variation coefficient of 4.03 with a standard deviation of  672.821,71 kg. The productivity of the average maximum at 14.17 acre area, while the area of ​​ optimal arable between 12.98 to 15.36 acres. This study suggested that it needs to grow chilli in optimal land areas and more involvement of relevant agencies regarding to:  (a) adjust the cropping pattern in the broader region; (b) help to find red chili markets.