Land Resource Economic Analysis of Rice Farming System in order to Support the Sustainable Food Agriculture

Abstract

The main objective of this research is to develop sustainable rice farming systems in Kabupaten Garut based on land capability. Each farming system has different input-output structures. The study showed that 57,91% of total paddy area was conducted on unsuitable land. Such a system needs higher inputs and influences the farmers’ income. The efficiency report showed different results based on the applied approach, either constant return to scale (CRS) or variable return to scale (VRS). The average efficiency score of rice farming systems using VRS approach was higher than using CRS approach for both land capabilities, i.e. 72-83%. This score range means that technically those farming systems had excess capacity between 17-28%. Land productivity change of rice farming system estimated by monetary valuation showed that on suitable land occurred appreciation, while on unsuitable one occurred depreciation. The result of feasibility analysis showed that the rice farming system on suitable land was feasible to be conducted, while on unsuitable one was unfeasible. The value of producer surplus of rice farming system on suitable land was higher than on unsuitable one. The result of optimization analysis showed that there were some areas in 7 sub-districts better not to produce rice since inefficient to be carried out, i.e. Kecamatan Kadungora, Pameungpeuk, Samarang, Banjarwangi, Cisewu, Talegong and Cikelet.