Technical Efficiency Analysis of Semi-Organic Rice Farming in Cigombong Sub-District Bogor District

Abstract

The development of semi-organic rice in Cigombong Sub-district is quite prospected. Cigombong Sub-district has the largest land area of organic rice in Bogor District and semi-organic rice production has been conducted since 2002. However, semi-organic rice productivity in Cigombong Sub-district is still relatively low due to the inefficiencies in the use of inputs or production factors (such as: land, seed, compost, etc) in farming and inefficiencies that come from internal factors farmers (such as: age, education, experience and so on). The aims of this study are 1) to analyze the factors that influence the production of semi-organic rice farming in Cigombong Sub-district, Bogor District; 2) to analyze the technical efficiency of semi-organic rice farming in Cigombong Sub-district, Bogor District; and 3) to analyze the income of semiorganic rice farming in Cigombong Sub-district, Bogor District. Stochastic Frontier Production function with Maximum Likelihood Estimation (MLE) method was used to analyze the problems in this research. The research was done in Cigombong Sub-district Bogor District from January 2013 until December 2013. Respondents in this research were selected by purposive sampling method. This research used cross section data and it was gotten by direct interview to the sample farmers. The research findings showed that land (X1), seed (X2), compost (X3), urea (X4), and labour (X5) had positive significant effect on semi-organic rice production. Land, compost, and urea were significant at 95% level, seed was significant at 90% level, and labour was significant at 85% level. The result also showed that the semi-organic rice farming was technically efficient (mean efficiency was 0.78). Land ownership status was an important factor in technical inefficiency and it significantly increased technical efficiency. Besides, the research also showed that the semi-organic rice farming was profitable (the benefit was Rp3 233 498.09) and feasible to be developed (R/C ratio by cash cost was 1.42 and R/C ratio by total cost was 1.24).