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Technical Efficiency and the Factors that Affect it in Rice Production in Indonesia

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  • Muhardi
  • Effendy

Abstract

Most of the population of Asia depends on consuming rice to support their lives. This implies that rice production needs attention. The existence of inefficiencies in lowland rice production could reduce rice yields for consumption, so the measurement of technical efficiency in lowland rice production needed to be studied. This research aimed to analyze the level of technical efficiency in lowland rice cultivation and identify the factors affecting it. The research was done in the Palolo and Torue subdistrict of Indonesia. The number of samples used was 249 lowland rice farmlands, consisting of 106 and 143 farmers of organic and inorganic lowland rice cultivation, respectively. The results show that land, fertilizer, seeds, and labor had a positive and significant effect on lowland rice production. The average technical efficiency of lowland rice cultivation was around 78.2%. The results also show that manager education, extension contacts, superior seeds, and organic lowland rice cultivation have a significant effect on the level of technical efficiency in lowland rice production. We concluded that there is an opportunity for farmers to increase lowland rice yields if they can manage production factors in an efficient manner. The government could provide support for farmers, such as formal and informal education, extension, superior seeds, and ready-to-use organic materials

Suggested Citation

  • Muhardi & Effendy, 2021. "Technical Efficiency and the Factors that Affect it in Rice Production in Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 11(03), January.
    • Handle: RePEc:ags:ajosrd:342334
    DOI: 10.22004/ag.econ.342334
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    References listed on IDEAS

    as
    1. Effendy & M Fardhal Pratama & Rustam Abdul Rauf & Made Antara & Muhammad Basir-Cyio & Mahfudz & Muhardi, 2019. "Factors influencing the efficiency of cocoa farms: A study to increase income in rural Indonesia," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-15, April.
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    3. Mangisoni, Julius H. & Chigowo, Mike & Katengeza, Samson, 2019. "Determinants of adoption of rainwater-harvesting technologies in a rain shadow area of southern Malawi," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 14(2), June.
    4. Christopher C Cabusora & Nenita V Desamero & Teresita H Borromeo & Rj D Buluran & Jose E Hernandez & Pompe C Sta Cruz, 2021. "Characterization of a Novel Floral Mutation Induced by Gamma Irradiation of Philippine Rice Variety NSIC Rc9 (Apo)," International Journal of Sustainable Agricultural Research, Conscientia Beam, vol. 8(1), pages 43-55.
    5. Mangisoni, Julius H. & Chigowo, Mike & Katengeza, Samson, 2019. "Determinants of adoption of rainwater-harvesting technologies in a rain shadow area of southern Malawi," AFBM Journal, Australasian Farm Business Management Network, vol. 14(2), June.
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