Stochastic Frontier Analysis on Technical Efficiency of Strawberry Farming in Purbalingga Regency, Indonesia (original) (raw)
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Analysis of Factors Affecting the Technical Efficiency of Rice Farming in East Java Province
Jurnal Ekonomi Pembangunan
Agriculture is a dominant sector in Indonesia, mostly because many people work in this sector, especially in agricultural centers such as East Java Province. However, it is ironic that the farm sector does not have a considerable contribution to Indonesia's national income. This study aimed to measure rice farming's efficiency in East Java and determine whether education, access to credit, farmer group membership, age, and agricultural extension affected rice farming efficiency. The data source comes from the Central Statistics Agency (Agricultural Business Household Income Survey) in 2013 for East Java Province. The number of samples used was 8603 farmer households. The research method uses Stochastic Frontier Analysis. The results showed that the average efficiency for the Cobb-Douglas production function was 0.764, while the average efficiency for the translog production function was 0.759. The Cobb-Douglas production function is not suitable for this study; the translog ...
Russian Journal of Agricultural and Socio-Economic Sciences, 2016
In order to achieve maize self-sufficiency in Indonesia, efficiency ought to be increased. Therefore, this study is aimed to assess technical efficiency of wide range of farmers. It is done in order to formulate a policy to increase the productivity of maize. The study was conducted in regions that produce maize. Sample farmers were determined to be nonproportionate stratified random sampling by land class strata, namely wetland and dry land. Analysis methods utilized in this research are Data Envelopment Analysis (DEA) and Analysis Frontier Stochastic (SFA). As for assessment of factors affecting technical efficiency analysis, Tobit regression models is utilized. The results of this research exhibits that the technical efficiency (TE) utilizing SFA approach gained an average of 0.78. On the other hand, the DEA approach obtained an average of 0.9. SFA approach exhibits lower TE value and evenly distributed among farmers compared to DEA approach, where no value is less than 0.6. Factors affecting TE are education, land ownership, extension frequency, and demonstration plot. Based on DEA approach also obtained the fact that most farmers are on the conditions of increasing returns to scale.
Agriculture is the mainstay of Cameroon economy as it serves the purpose of employment, food, and livelihood. However, Cameroon agriculture is plague by low productivity, inefficiency in production and dependent on imports. For this reason, this study examined the technical efficiency of rice farmers in Cameroon NorthWest region. Data were collected from 144 farmers using structured questionnaires and interview schedule. The Data was analyzed using descriptive statistics and a stochastic frontier analysis. The result from the stochastic frontier analysis shows that the variance parameters (sigma square and gamma) were statistically significant. The coefficient of farm size, fertilizers, labor and herbicides were positive and significant. The mean technical efficiency level was 84 percent implying that rice farmers' technical efficiency could be increased by 16 percent if the available resources are efficiently utilized. The inefficiency model shows that credit access is the significant factor that is negatively related to technical inefficiency. This finding is in line with government efforts (SEMRY, UNVDA, CARFIC, and The Second Generation Agriculture) of providing credits to farmers to improve their productivity.
Journal of Agriculture and Environmental Sciences, 2019
This study was designed to estimate and explain the technical efficiency variations among carrot farmers in the Ashanti-Mampong Municipality of Ghana. This was motivated by great potential but lower yields in carrots production of the municipality, being one of the leading carrots producing districts in Ghana. A multistage sampling technique made up of purposive and simple random sampling techniques were employed for the study. Determinants and level of technical efficiency among carrot farmers in the municipality were estimated using the stochastic frontier model. The mean technical efficiency was 76.5% with a potential productivity gap of 23.5% in the short run without any additional inputs. Labour and fuel used in irrigation significantly and positively influenced output levels of carrot. Socioeconomic characteristics of farmers such as farm size, access to credit, household labour, age and years of education were all significant determinants of technical inefficiency. It is recommended that agro-inputs and fuel usage for carrot farmers under irrigation in the dry season be increased to improve technical efficiency. It is also recommended that extension education to farmers on effective input allocation be intensified.
Journal of Economics and Sustainable Development, 2013
The purpose of this study was to determine the level of production and cost efficiency on paddy farming system with integrated plant and resource management (IPRM) approach in Buru District Maluku Province. Maximum Likelihood Estimation (MLE) method was used to estimate parameters in both frontier stochastic models. 120 respondents was determined by using simple random sampling method. The empirical finding shows that the varies of the error term in both models are mostly influence by inefficiency factors (γ production= 0.933; γ cost = 0.948) rather than stochastic factors. The average technical efficiency is 0.855 and 75.83% respondent already operates in this level of efficiency. The average cost efficiency is 0.86 and 80% of respondent already achieve this level of cost efficiency. These findings indicate that rice farming system with integrated plant and resource management approach in the research area are efficient and profitable.
Technical Efficiency of Rice Farm Production in Aceh Province, Indonesia
2018
The purpose of the present paper is to examine the efficiency of Indonesian rice production conducted in Aceh Province, by using agricultural census data 2013 with a sample of 1,029 characteristics of farm households. The analysis model used is stochastic frontier analysis (SFA)) approach and the estimation result obtained that rice production factors such as wages of farm workers, harvested area, fertilizer, and seeds have not been technically efficient. Furthermore, the economical scale of rice production in Aceh Province is decreasing return to scale that coherent with the results of the efficiency test. Keywords: efficiency, farmer household, stochastic frontier analysis, economic scale.
Agricultural Social Economic Journal
These study aims to analyze the level of technical efficiency of shallots farming, and to analyze the factors that affect the inefficiency shallots farming in UPSUS APBN-P 2017 Program. This research uses Stochastic Frontier production function analysis method which aims to analyze the level of technical efficiency of shallots farmers in Gondang sub-district. The second analytical method is Tobit regression that aims to determine what factors affect the technical inefficiency in shallots farming in Gondang Sub-district. The result of this research is known that the average value of efficiency achieved is equal to 0.71. The total of 52 farmers are technically efficient and as many as 38 farmers are technically inefficient. In the result of Tobit regression analysis, it is known that the factors that significantly influence the technical inefficiency of shallots farming in Gondang sub-district are age, farming experience, training participation, and program officer control.
Technical Efficiency of Sweet Potato Production: A Stochastic Frontier Analysis
Turkish Journal of Agriculture - Food Science and Technology
The level of yield among sweet potato farmers is on a decline; low output and yield differences was observed, indicating the existence of inefficiency in production systems and variations in input utilization. Efficiency in resource use must be sustained in order to improve productivity and maximize farm output. This study therefore analyzed the technical efficiency of sweet potato production. Multi-stage sampling techniques were adopted in selecting 94 respondents for this study. Data collected was analyzed using descriptive statistics and stochastic frontier production function. The socioeconomic variables of the respondents affected their farm efficiency and level of farm output. The estimated ratio of the L/R test was 0.579; indicating a goodness of fit of the frontier model and thus a rejection of the null hypothesis. The coefficients of sweet potato seeds (vines) (0.362) and labour (0.439) were positive and statistically significant at 5% level of probability, while the coeffi...
Technical Efficiency Analysis of Sugar Cane Farming in Malang Regency, Indonesia
Agricultural Social Economic Journal
This study aims to analyze the factors that influence sugarcane production in Malang Regency. This reaserach uses stochastic frontier production function. The model is specified which sugarcane production is influenced by amount of seed, the labor used, the amount of fertilizer, land used in sugar cane production, the frequency of ratooncane. The results showed that factors of sugarcane farming production in Malang Regency are influenced significantly by the number of seed, amount of fertilizer used, and ratooncane frequency. The seed and amount of fertilizer used in sugarcane production have positive effect in production; however, ratooncane frequency has negative effect in production of sugarcane significantly. On the other hand, land area and labor are not statistically significant at alpha 1%.
The Technical Efficiency Analysis of Rice Farming in Districts of South Borneo, Indonesia
Russian Journal of Agricultural and Socio-Economic Sciences, 2018
The technical efficiency is meant as the ability of a firm to produce maximum output given a set of inputs and available production technology. A firm that had production does not reach maximum level is supposed to be technically inefficient. This research aimed to assess the technical efficiency performance of rice farming in the Sub-District of Cerbon, the District of Barito Kuala and the Sub-Disrict of Aluh-aluh, District of Banjar by employing an econometric model of the stochastic frontier production function. The error structure of stochastic frontier production model made up of two independent components. One is a general random error and the other is an error which assumed to account for technical inefficiency in production. The method of maximum likelihood estimation (MLE) was applied to estimate parameters of the model which were then used to count the maximum level of output possible to produce by firms given a set of inputs. The technical efficiency index, expressed by TE index, 0 ≤ TE ≤ 1, was measured as the ratio between actual output and assumed the maximum level of output possible to produce. The results showed an average index of TE rice farming in the Sub-District of Cerbon, the District of Barito Kuala and the Sub-District of Aluh-aluh, District of Banjar was 0.87 indicating the performance of production was relatively good. However, there was 3.33% of all the rice farming considered technically inefficient. Such results imply that some treatments may be set to consolidate production managerial aspects in order to improve the technical efficiency of production.