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Abstract
The use of agricultural input is significant for farm management. It would relate to productivity and efficiency. The problem is that the paddy farmers still needed to determine the appropriate agricultural input use level to achieve efficiency. This study aims to assess the efficiency of paddy farming in Deli Serdang Regency, North Sumatra, Indonesia. This study evaluated the efficiency of paddy farming with three types: technical efficiency, allocative efficiency, and economic efficiency. A survey was conducted with 40 paddy farmers to obtain data on paddy production and agricultural input use such as seed, fertilizer, chemicals, and labor. Data envelopment analysis with an input approach was employed to analyze the data. The scores of technical efficiency, allocative efficiency, and economic efficiency were 0.935, 0.711, and 0.668, respectively. This study indicated that paddy farming in Deli Serdang Regency, North Sumatra, Indonesia, was technically efficient. However, it was allocative and economically inefficient. The unachieved cost minimization was the driving factor of the allocative inefficiency. Furthermore, this study also found that the condition of paddy farming increased the return to scale (IRS). This condition implied that the paddy farmers could escalate the paddy production and achieve efficiency by improving agricultural input use. Moreover, eco-friendly agricultural input is encouraged to minimize costs to improve allocative efficiency and support sustainable agriculture. Also, the government should take some actions and policies to improve the efficiency of paddy farming in Deli Serdang.
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Copyright (c) 2024 Nana Trisna Mei Br Kabeakan, Khairul Fahmi Purba, Dian Retno Intan, Wildani Lubis, Cahya Vionika
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References
Abdulai, S., Nkegbe, P. K., & Donkoh, S. A. (2018). Assessing The Technical Efficiency Of Maize Production In Northern Ghana: The Data Envelopment Analysis Approach. Cogent Food & Agriculture, 4(1), 1-14. doi: 10.1080/23311932.2018.1512390
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Atici, K. B., & Podinovski, V. V. (2015). Using Data Envelopment Analysis For The Assessment Of Technical Efficiency Of Units With Different Specialisations: An Application To Agriculture. Omega, 54(5), 72–83. doi: 10.1016/j.omega.2015.01.015
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Linn, T., & Maenhout, B. (2019). Measuring The Efficiency Of Rice Production In Myanmar Using Data Envelopment Analysis. Asian Journal Of Agriculture And Development, 16(2), 1–24. doi: 10.37801/ajad2019.16.2.1
Listiani, R., Setiyadi, A., & Santoso, S. I. (2019). Income Analysis Of Rice Production In Mlonggo District, Jepara Regency. Agrosocionomics: Jurnal Sosial Ekonomi Dan Kebijakan Pertanian, 3(1), 50–58. Retrieved from http://ejournal2.undip.ac.id/index.php/agrisocionomics
Mamo, T., et al. (2018). Technical Efficiency And Yield Gap Of Smallholder Wheat Producers In Ethiopia: A Stochastic Frontier Analysis. African Journal Of Agricultural Research, 13(28), 1407–1418. doi: 10.5897/ajar2016.12050
Mariyono, J. (2018). Productivity Growth Of Indonesian Rice Production: Sources And Efforts To Improve Performance. International Journal Of Productivity And Performance Management, 67(9), 1792–1815. doi: 10.1108/IJPPM-10-2017-0265
Nanii, Y., Isaac, A., & Evelyn, D. A. (2020). An Efficiency Assessment Of Irrigated Tomato (Solanum lycopersicum) Production In The Upper East Region Of Ghana. Journal Of Development And Agricultural Economics, 12(1), 1–8. doi: 10.5897/JDAE2019.1090
Noor. (2007). Formulasi Input (Biaya) Yang Paling Efisiensi Untuk Menghasilkan Output (Produksi). Jakarta: Salemba Empat
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Nwahia, O. C., et al. (2020). Analysis Of Technical, Allocative And Economic Efficiency Of Rice Farmers In Ebonyi State, Nigeria. Russian Journal Of Agricultural And Socio-Economic Sciences, 106(10), 135–143. doi: 10.18551/rjoas.2020-10.15
Obianefo, C. A., et al. (2021). Technical Efficiency And Technological Gaps Of Rice Production In Anambra State, Nigeria. Agriculture (Switzerland), 11(12), 1-13. doi: 10.3390/agriculture11121240
Okello, D. M., Bonabana-Wabbi, J., & Mugonola, B. (2019). Farm Level Allocative Efficiency Of Rice Production In Gulu And Amuru Districts, Northern Uganda. Agricultural And Food Economics, 7(1), 1–19. doi: 10.1186/s40100-019-0140-x
Oluwatayo, I. B., & Adedeji, T. A. (2019). Comparative Analysis Of Technical Efficiency Of Catfish Farms Using Different Technologies In Lagos State, Nigeria: A Data Envelopment Analysis (DEA) Approach. Agriculture & Food Security, 8(1), 1–9. doi: 10.1186/s40066-019-0252-2
Pandey, C., & Diwan, H. (2021). Assessing Fertilizer Use Behaviour For Environmental Management And Sustainability: A Quantitative Study In Agriculturally Intensive Regions Of Uttar Pradesh, India. Environment, Development And Sustainability, 23(4), 5822–5845. doi: 10.1007/s10668-020-00848-1
Poudel, K. L., et al. (2015). Comparing Technical Efficiency Of Organic And Conventional Coffee Farms In Rural Hill Region Of Nepal Using Data Envelopment Analysis (DEA) Approach. Organic Agriculture, 5(4), 263–275. doi: 10.1007/s13165-015-0102-x
Pradhan, A. K. (2018). Measuring Technical Efficiency In Rice Productivity Using Data Envelopment Analysis: A Study Of Odisha. International Journal Of Rural Management, 14(1), 1–21. doi: 10.1177/0973005217750061
Purba, K. F., et al. (2020). Technical Efficiency And Factors Affecting Rice Production In Tidal Lowlands Of South Sumatra Province Indonesia. Potravinarstvo Slovak Journal Of Food Sciences, 14(1), 101–111. doi: 10.5219/1287
Ren, C., et al. (2021). Fertilizer Overuse In Chinese Smallholders Due To Lack Of Fixed Inputs. Journal Of Environmental Management, 293(18), 1–9. doi: 10.1016/j.jenvman.2021.112913
Samarpitha, A., Vasudev, N., & Suhasini, K. (2016). Socio-Economic Characteristics Of Rice Farmers In The Combined State Of Andhra Pradesh. Asian Journal Of Agricultural Extension, Economics & Sociology, 13(1), 1-9. doi: 10.9734/ajaees/2016/28696
Santhoshkumar, M. (2017). A Review On Organic Farming - Sustainable Agriculture Development. International Journal Of Pure & Applied Bioscience, 5(4), 1277–1282. doi: 10.18782/2320-7051.5649
Sickles, R., & Zelenyuk, V. (2019). Measurement Of Productivity And Efficiency. England: Cambridge University Press
Simar, L., & Wilson, P. W. (2020). Technical, Allocative And Overall Efficiency: Estimation And Inference. European Journal Of Operational Research, 282(3), 1164–1176. doi: 10.1016/j.ejor.2019.10.011
Siregar, S., Rangkuti, K., & Norman. (2016). Optimization Analysis On The Use Of Production Input Farming Cucumber. Agrium, 20(2), 139–146. doi: 10.30596/agrium.v20i2.637
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