An Assessment of Input Cost At Different Stages of Rice Growth and Its Effect on Production Cost on Cobb-Douglas Function in Cambodia

Abstract

The data analyzed in this study was obtained through a household survey from the three provinces in Cambodia. The sampling was done through which 540 farmer households were randomly selected. It applied Cobb-Douglas cost to examine the effect of input cost in different stages of rice growth on the total production cost. The result reveals that dry paddy, a 1% increase in the cost of the seedling stage would increase the rice production cost by approximately 25%. A 1% increase in input cost of jointing and booting stages would increase rice cost to 15%. And a 1% increase in farm size would increase output cost by roughly 17%. It means that the percentage change of the input cost of dry paddy would change output cost by 1%. In wet paddy, a 1% increase in input cost of the tillering stage would increase the rice cost by 28%. A 1% input cost of popular and milk stages would affect the output cost to approximately around 24%. A 1% increase in income off-farm jobs would increase rice costs by 11%. The elements of cost inputs of rice growth stages include fertilizer, pesticides, herbicides, irrigation, hired labor; land preparation and transportation stand out as the most crucial factors to contribute to the increment of cost output in wet paddy. These findings have a significant impact on how to boost rice production in Cambodia. Farmers are likely to benefit the most from improved agricultural productivity and technology. The study emphasizes that Cambodian farmers need to focus on agriculture to achieve increased rice production and poverty reduction in rural areas. As most of Cambodia includes poor people who live in rural areas and depend on agriculture, high agricultural growth will provide food security by increasing supply, reducing prices, and increasing households’ income.