Chile Farming Costs and Harvest Outcomes: An Islamic Economic Law Perspective

Abstract

Objective: This study aims to analyze the relationship between production costs and chili harvest outcomes among small-scale Muslim farmers in Magelang Village, Indonesia, from the perspective of Islamic economic law. The issue of cost efficiency and income sustainability has become increasingly important due to the fluctuating prices of horticultural commodities, particularly chili. The Theoretical framework: theoretical framework of this study combines microeconomic production theory, especially cost and marginal return analysis, with Islamic economic principles emphasizing justice (adl), balance (mizan), mutual cooperation (ta'awun), and sustainable welfare (maslahah). Literature review: Previous studies have demonstrated that smallholder farmers frequently encounter limited capital access, unstable market prices, weak bargaining positions, and dependence on traditional distribution systems. Methods: This research employed a qualitative case-study approach involving 15 Muslim chili farmers in Magelang Village. Data were collected through in-depth interviews, direct observation, and documentation, then analyzed descriptively and comparatively to evaluate the balance between production inputs, including seeds, fertilizers, labor, irrigation, and harvesting costs, and the resulting harvest income. Results: The findings reveal that most farmers experienced financial imbalance during periods of declining chili prices, leading to unstable household income. Nevertheless, farmers who implemented collective farming practices, resource-sharing mechanisms, and Islamic economic values within farmer associations demonstrated better economic resilience and production efficiency. The study further indicates that Islamic principles such as fairness, transparency, and social solidarity contribute positively to sustainable agricultural management. Implications: The implications of this study highlight the importance of community-based empowerment, Islamic agricultural ethics, and cooperative economic models in strengthening the sustainability of small-scale farming. Novelty: The novelty of this research lies in integrating production-cost analysis with Islamic economic law and local Muslim community practices, offering a socio-religious perspective rarely explored in agricultural economic studies.