Efficiency analysis of red chili farming in Pidie Jaya Aceh

Abstract

The application of production management is very important in farming, this is reflected in the farming of red chili as one of the contributing commodities to inflation in Indonesia. chili is a commodity that has the most fluctuating price movements, where the price indicator is a reference for a farmer in planting red chili, therefore a farmer must be able to determine the time and carry out production management, one of which is the efficiency of production factors where this efficiency ultimately affects the the amount of income received by farmers. The purpose of this study is to determine what factors affect production, factors that have been economically efficient and factors that affect income in the red chili farming in Pidie Jaya Regency. This study uses Cobb Douglas efficiency analysis and income analysis. The factors that influence the production of red chilli farming in Bandar Baru and Trienggadeng Districts in Pidie Jaya Regency consist of seeds, compost, NPK, urea, KCL, TSP, pesticides and labor where the magnitude of the influence of the variable reaches 94.9%. The efficiency of production factors, namely compost, and KCL are not efficient, so it needs to reduce production factors, while seeds, NPK, urea, TSP, pesticides and labor are not efficient so need the addition of production factors. The influence of the factors of the amount of production, the selling price of red chili and production costs to the income of the farming of red chili in the District of Bandar Baru and the District of Trienggadeng in the District of Pidie Jaya that is equal to 91.90%.