Abstract: This research aims to analyze Technical Efficiency, Price Efficiency, and Economic Efficiency by examining the Production Function of Wetland Rice Farming and its impact on the income of Wetland Rice Farming in the Tiloan District of Buol Regency. This research was quantitative. The data for this study were obtained from rice farmers in the Tiloan District of Buol Regency. Hypothesis testing was conducted using multiple regression analysis and stochastic frontier estimation with the Maximum Likelihood Estimate (MLE) method. The analysis results, measured in terms of the Allocation of Production Factors, indicated that the partial use of the land area, urea fertilizer, family labor, and pesticides had a significant effect on production, while seed, ponska fertilizer, and external labor did not have a significant partial effect on production. On average, wetland rice farmers in the research location did not use production factors efficiently, as indicated by technical efficiency, price efficiency (allocative), and economic efficiency values less than 1, which are 0.74, 0.31, and 0.22. The sources of inefficiency that affected production were farming experience, production costs, and extension frequency. The income of wetland rice farmers in the research location can be considered relatively high, with a total income of IDR 913,373,600 or IDR 13,786,771.32 per hectare or an average of IDR 4,963,237.68 per respondent per harvest season. The comparison ratio between revenue and costs was 2.56, indicating that by spending IDR 1,000,000,-, one could earn IDR 2,560,000,-. Therefore, it can be said that wetland rice farming in the research location is worth pursuing because the R/C ratio is greater than 1 (R/C > 1). The role of agricultural institutions in improving farm efficiency in the research area was still relatively low. It could continue to be enhanced to motivate farmers to achieve higher levels of farm efficiency, as explained by the results of simple regression analysis, which showed that the coefficients of technical efficiency, price (allocative) efficiency, and economic efficiency were 0.098, 0.003, and 0.032, respectively.
Keywords: Production Factors, Social Characteristics, Efficiency, Income.
Title: Efficiency of Lowland Rice Farming In the Tiloan District of Buol Regency
Author: Lilyansi, Arifuddin Lamusa, Made Antara, Marhawati Mappatoba, Hadayani, Muh Nur Sangadji
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 11, Issue 4, October 2023 - December 2023
Page No: 1-9
Research Publish Journals
Website: www.researchpublish.com
Published Date: 02-October-2023
