Increasing the efficiency of rice agribusiness through the recommendations of balanced fertilizers and price policies

Abstract

The efforts in increasing national rice production through production efficiency and price efficiency more important alternative than having extensification through the extension of the area. This study was purposed in leveling the national rice agribusiness economic efficiency by comparing between before and after the subsidy price was calculated based on the conditions of irrigated rice farming technology in Java in 2010 and in 2014. The results of the analysis rice farming nation efficiency 85% was increased to be 88% on fertilizer subsidies had been taken into account. The rice farming efficiency in year 2014 was 71% to be 84% at the subsidies price calculated. National technical efficiency of lowland rice production can still be increased in improving production technology through the application of balanced in use of NPK, KCl, and organic fertilizer recommendation. In 2014 conditionally shown the economic efficiency on farm level 38%, was smaller than national level 65%, the grain was sold by the government purchase price, using technology, and only looks up to 48% efficiency after fertilizer subsidy prices had been taken into account. Overall the agribusiness efficiency of wetland rice trends to increase above 50% at milling has the price as the retail price at the farm level. It was suggested that technical efficiency on production should increased technology in application of fertilizer on rice farming in Java.