International Journal of Agriculture, Environment and Bioresearch

ISSN : 2456-8643

Financial Analysis And Allocative Efficiency Of Wetland Rice Farming In Lebak Swamp In Sungai Pandan Sub-district, Hulu Sungai Utara Regency

Authors: Saliyah *, Yusuf Azis, and Luthfi Fatah, Indonesia

Abstract:

Effective management of rice paddy cultivation requires the careful selection and optimal combination of various production factors. However, in practice, rice farmers in Awayan District continue to face numerous challenges. A primary challenge is the farmers’ insufficient understanding of how to utilize production factors efficiently. This research aims to examine the factors influencing production, assess technical efficiency, and evaluate the allocative (price) efficiency of input utilization in superior rice cultivation in Awayan District, Balangan Regency. The study employs both primary and secondary data sources. Primary data encompasses input usage and output quantities from superior rice farming operations conducted by Pitap Irrigation farmers. The analytical method employed is multiple regression analysis. The findings reveal that production factors including cultivation area, seeds, fertilizers, pesticides, and labor significantly influence superior rice production in Awayan District. The utilization of these production factors in superior rice farming operations demonstrates technical efficiency. However, regarding allocative efficiency, the use of cultivation area and seeds proves to be significantly inefficient. Similarly, the allocative use of fertilizers and pesticides also exhibits significant inefficiency. In contrast, labor utilization, while not statistically significant, demonstrates allocative efficiency. This study aims to analyze the amount of cost, revenue, profit and feasibility of paddy rice farming, analyze what production factors affect paddy rice production, and analyze the allocative efficiency (price efficiency) of production factors used by farmers in paddy rice farming in Sungai Pandan District, North Hulu Sungai Regency. The population of this study is 3,345 farmers, selected purposively from 3 villages with a total population of 536 farmers. Of these, 60 people were taken using the proportionated random sampling technique with details of 23 people from Pondok Babaris Village, 17 people from Rantau Karau Hulu and 20 people from Rantau Karau Hilir. The results of the study show that the average cost is Rp. 6,321,410 per farm, the average income obtained from rice paddy farming in Sungai Pandan District is Rp. 8,278,783 per farming, the average profit obtained by paddy rice farmers is Rp. 2,047,373 per farming, and the average value of the Return Cost Ratio 1.33 farmer companies with an average land area of 0.47 ha of farming. The results of the statistical testing of the Cobb-Douglas type production function show that together (simultaneously) the production factors (land area, number of seeds, fertilizers, labor and drugs) have a real effect on the production of paddy rice, while the testing of the production factors of land area, number of seeds and labor has a real effect on the production of paddy rice, except for the production factors of fertilizers and medicines. Statistically testing the allocative efficiency there are three factors of production, namely the number of seeds and drugs whose use is efficient or marginal products equal to the price of the production factor. The use of land area, fertilizer and labor is not yet efficient, so it needs to be increased to achieve an efficient point.

Keywords: Farmer; Rice Paddies Farming; Adaptive Efficiency; Production Function; Production Factors.