Author : I Wayan Budiasa

Summary : Intensive farming system development (FSD) on poor fertile soil with limited water source especially in north coastal plain of Bali can lead to trade-off between economic benefit in the short run and environmental problems in the long run. As environmental degradation increases and economically inefficient in resources allocation, farming system will become unsustainable. This study aims to develop irrigated farming system model at household level in north coastal plain of Bali and to assess its sustainability. A small farmer was optimal in resources allocation indicated from optimal solution of conventional farming system model which conforms to observed behavior. By several adjustments, conventional farming system model can be extended to sustainable farming system model. Since all components and indicators of sustainability were considered into model and all criteria of sustainability were fulfilled by optimal results, the extended farming system model guarantee that irrigated farming system development at household level will become sustainable. Simulation results indicated that the sustainable farming system is better than the conventional farming system. Decreasing groundwater limit, increasing water price, subsidy elimination, and increasing input prices and minimum household expenditure will partially or simultaneously reduce net cash flow plus liquidity value of reserve cash and credit. But, the farmers still possible to maximize the value of objective function by improving farm technologies.