ANALYSIS OF TECHNICAL EFFICIENCY, SOURCE OF INEFFICIENCY AND RISK PREFERENCES OF FARMERS AND ITS IMPLICATIONS IN THE EFFORTS TO IMPROVE PRODUCTIVITY OF PALM OIL PLANTATION IN JAMBI PROVINCE OF INDONESIA

Nainggolan, Saidin and Napitupulu, Dompak MT and Saad, Murdy (2019) ANALYSIS OF TECHNICAL EFFICIENCY, SOURCE OF INEFFICIENCY AND RISK PREFERENCES OF FARMERS AND ITS IMPLICATIONS IN THE EFFORTS TO IMPROVE PRODUCTIVITY OF PALM OIL PLANTATION IN JAMBI PROVINCE OF INDONESIA. RJOAS: Russian Journal of Agricultural and Socio-Economic Sciences, 11(95). pp. 83-92. ISSN ISSN 2226-1184

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Abstract

The purpose of this research: (1) To analysis the technical efficiency of the use of smallholder oilalm plantation inputs; (2) To d out the factors causing technical inefficiencies in the people's oil palm plantations. (3) To analyze the productivity risk behavior of oil palm farmers in Jambi Province; (4) Create a model (reconstruction) to increase the productivity of smallholder oil palm plantations. This research was carried out in Muaro Jambi, Batanghari, Sarolangun and Tebo Districts. Site selection is done purposively. The sample size was 280 farm households. The estimation med uses the Kumbhakar Production Function model with the stochastic frontier approach. The results showed that the use of production inputs both simultaneously and partially had a significant effect on Fre Fruit Bunch production. All the uses of production inputs are classified as determinants of production. The use of production inputs has not been technically efficient (ET < 0.63), (chance of increasing production by 37%). The source of technical inefficiency is significantly affected by the age of the farmer, the distance of the land, and the area of land, meaning that the further the distance of the land, the olde he farmer is and the more extensive the land cultivated by the farmer, the more inefficient the oil palm farming is. The behavior of oil palm farmers in Jambi Region is a risk averter. The risk averse behavior of farmers has consequences for the allocation of inputs used. The more avoiding productivity risk, the less allocation of input use so that the productivity achieved by farmers is lower. The combined use of palm oil production inputs will affect the level of technical efficiency. The low average technical efficiency shows that the oil palm farmers' risk preferences affect technical efficiency. Increased productivity that takes into account the production function, risk function and profit function must use as much as optimal input usage so that productivity gains of 28- 49% are obtained

Type: Article
Subjects: S Agriculture > S Agriculture (General)
Divisions: Fakultas Pertanian > Agribisnis
Depositing User: Nainggolan
Date Deposited: 11 May 2023 04:20
Last Modified: 11 May 2023 04:20
URI: https://repository.unja.ac.id/id/eprint/48348

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