IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v13y2023i6p1257-d1172559.html
   My bibliography  Save this article

The Impact of Government Food Policy on Farm Efficiency of Beneficiary Small-Scale Farmers in Indonesia

Author

Listed:
  • Meidiana Purnamasari

    (Department of Tropical Agriculture and International Cooperation, National Pingtung University of Science and Technology, Pingtung 91201, Taiwan
    Department of Entrepreneurship, BINUS Business School Undergraduate Program, Bina Nusantara University, Malang 65154, Indonesia)

  • Wen-Chi Huang

    (Department of Agribusiness Management, National Pingtung University of Science and Technology, Pingtung 91201, Taiwan)

  • Bambang Priyanto

    (Department of Agriculture Development, Polytechnic Agricultural Development of Malang, Malang 65215, Indonesia)

Abstract

Enhancing self-sufficiency and national food security have been strategic policy goals of the Indonesian government. From 2015 to 2019, a food policy program called Upsus Pajale had been implemented to provide input subsidies and extension assistants to farmers for three strategic commodities: rice, maize, and soybeans, to accelerate productivity and increase production. The study was done by interviewing 374 beneficiary farmers. The objectives were to explore production efficiency and the farmers’ perspectives on the policy programs. By conducting stochastic frontier production function estimation, the results show that the mean efficiency level was 0.866. This study revealed that land size, seed cost, and labor cost were found to be important determinants of technical efficiency. In addition, the results of the inefficiency model indicated that age and farmers’ associations had a significant and positive effect on efficiency scores, whereas education had a negative effect. Contrarily, none of the policy program instruments appear to be essential determinants of efficiency. Furthermore, the research found that farmers prioritized their habits and profitability when deciding which crop to cultivate and that pests were their main concerns. Hence, the government should focus on enhancing research and development for improved seedling pest management control and encourage the establishment of farmers’ association to share experience and transfer information and technology for farmers to improve their efficiency.

Suggested Citation

  • Meidiana Purnamasari & Wen-Chi Huang & Bambang Priyanto, 2023. "The Impact of Government Food Policy on Farm Efficiency of Beneficiary Small-Scale Farmers in Indonesia," Agriculture, MDPI, vol. 13(6), pages 1-14, June.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:6:p:1257-:d:1172559
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/13/6/1257/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/13/6/1257/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joseph Henrich & Richard McElreath, 2002. "Are peasants risk-averse decision makers?," Artefactual Field Experiments 00066, The Field Experiments Website.
    2. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
    3. Yaovarate Chaovanapoonphol & Jittima Singvejsakul & Songsak Sriboonchitta, 2022. "Technical Efficiency of Rice Production in the Upper North of Thailand: Clustering Copula-Based Stochastic Frontier Analysis," Agriculture, MDPI, vol. 12(10), pages 1-13, October.
    4. Greene, William H., 1980. "On the estimation of a flexible frontier production model," Journal of Econometrics, Elsevier, vol. 13(1), pages 101-115, May.
    5. Chukwujekwu A. Obianefo & John N. Ng’ombe & Agness Mzyece & Blessing Masasi & Ngozi J. Obiekwe & Oluchi O. Anumudu, 2021. "Technical Efficiency and Technological Gaps of Rice Production in Anambra State, Nigeria," Agriculture, MDPI, vol. 11(12), pages 1-13, December.
    6. MD. Abdul Wadud & Ben White, 2002. "The Determinants of Technical Inefficiency of Farms in Bangladesh," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 37(2), pages 183-197, July.
    7. Khanal, Aditya & Koirala, Krishna & Regmi, Madhav, 2016. "Do Financial Constraints Affect Production Efficiency in Drought Prone Areas? A Case from Indonesian Rice Growers," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230087, Southern Agricultural Economics Association.
    8. Broadstock, David C. & Li, Jiajia & Zhang, Dayong, 2016. "Efficiency snakes and energy ladders: A (meta-)frontier demand analysis of electricity consumption efficiency in Chinese households," Energy Policy, Elsevier, vol. 91(C), pages 383-396.
    9. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    10. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
    11. Salman Khan & Syed Attaullah Shah & Shahid Ali & Amjad Ali & Lal K. Almas & Sania Shaheen, 2022. "Technical Efficiency and Economic Analysis of Rice Crop in Khyber Pakhtunkhwa: A Stochastic Frontier Approach," Agriculture, MDPI, vol. 12(4), pages 1-15, April.
    12. Clapp, Jennifer, 2017. "Food self-sufficiency: Making sense of it, and when it makes sense," Food Policy, Elsevier, vol. 66(C), pages 88-96.
    13. Lee, Young Hoon, 2006. "A stochastic production frontier model with group-specific temporal variation in technical efficiency," European Journal of Operational Research, Elsevier, vol. 174(3), pages 1616-1630, November.
    14. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    15. Ayodeji, Ogunleye & Remi, Adeyemo & Adebayo, Simeon Bamire & Ayodeji, Damilola Kehinde, 2017. "Assessment of profitability and efficiency of cassava production among government and non-government assisted farmers association in Osun State, Nigeria," African Journal of Rural Development (AFJRD), AFrican Journal of Rural Development (AFJRD), vol. 2(2), June.
    16. Thi-Hien Vu & Ke-Chung Peng & Rebecca H. Chung, 2019. "Evaluation of Environmental Efficiency of Edible Canna Production in Vietnam," Agriculture, MDPI, vol. 9(11), pages 1-14, November.
    17. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    18. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anik, Asif Reza & Bauer, Siegfried, 2015. "Impact of resource ownership and input market access on Bangladeshi paddy growers’ efficiency," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 4(3), April.
    2. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
    3. Madau, Fabio A., 2005. "Technical Efficiency in Organic Farming: An Application on Italian Cereal Farms Using a Parametric Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24545, European Association of Agricultural Economists.
    4. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    5. Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
    6. Roengchai Tansuchat, 2023. "A Copula-Based Meta-Stochastic Frontier Analysis for Comparing Traditional and HDPE Geomembranes Technology in Sea Salt Farming among Farmers in Phetchaburi, Thailand," Agriculture, MDPI, vol. 13(4), pages 1-23, March.
    7. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    8. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    9. Roberto Furesi & Fabio Madau & Pietro Pulina, 2013. "Technical efficiency in the sheep dairy industry: an application on the Sardinian (Italy) sector," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 1(1), pages 1-11, December.
    10. Otsuka, Akihiro, 2023. "Industrial electricity consumption efficiency and energy policy in Japan," Utilities Policy, Elsevier, vol. 81(C).
    11. Kexin Li & Jianxu Liu & Yuting Xue & Sanzidur Rahman & Songsak Sriboonchitta, 2022. "Consequences of Ignoring Dependent Error Components and Heterogeneity in a Stochastic Frontier Model: An Application to Rice Producers in Northern Thailand," Agriculture, MDPI, vol. 12(8), pages 1-17, July.
    12. Ángel Martín-Román & Alfonso Moral, 2017. "A methodological proposal to evaluate the cost of duration moral hazard in workplace accident insurance," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(9), pages 1181-1198, December.
    13. Díaz-Hernández, Juan José & Martínez-Budría, Eduardo & González, Rosa Marina, 2020. "Effects of Inefficiency on Marginal Costs, Degree of Economies of Scale and Technical Change: A Theoretical Relationship. The Case of Spanish Port Authorities || Efectos de la ineficiencia sobre los c," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 29(1), pages 190-207, June.
    14. Dairo Estrada & Poldy Osorio, 2004. "Effects of Financial Capital on Colombian Banking Efficiency," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 22(47), pages 162-201, December.
    15. Sickles, Robin C. & Song, Wonho & Zelenyuk, Valentin, 2018. "Econometric Analysis of Productivity: Theory and Implementation in R," Working Papers 18-008, Rice University, Department of Economics.
    16. Wasantha Athukorala & Clevo Wilson, 2012. "Groundwater overuse and farm-level technical inefficiency: evidence from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 279, School of Economics and Finance, Queensland University of Technology.
    17. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    18. Yuda, Michio, 2016. "Inefficiencies in the Japanese National Health Insurance system: A stochastic frontier approach," Journal of Asian Economics, Elsevier, vol. 42(C), pages 65-77.
    19. Manyeki John Kibara & Kuria Simon & Rono Julius & Mulei Benson, 2024. "The Levels and Determinants of Profit Efficiency in Fodder Production: A Case of Southern Rangelands of Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 2405-2414, March.
    20. Holger Seebens & Johannes Sauer, 2007. "Bargaining power and efficiency-rural households in Ethiopia," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(7), pages 895-918.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:13:y:2023:i:6:p:1257-:d:1172559. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.