Abstract

The success of agriculture cannot be separated from several things, one of which is financing. Credit is a financing mechanism that has a role as the formation of farmers' capital to support increased food production, especially rice. This study aims to analyze the effect of credit on the technical efficiency of lowland rice farming. Data collection used primary data and secondary data. Primary data were obtained from interviews with respondent farmers consists of 36 credit users and 66 non-credit users, the sample selection was carried out randomly. The results of the analysis that using the stochastic frontier analysis method on the Cobb-Douglas production function indicated that credit farmers were more efficient than farmers who do not use credit. The average level of technical efficiency for credit farmers was 0,93, while farmers who did not use credit were 0,87. Based on the results of the research, by using credit there was an opportunity for farmers to fulfill the supply of production inputs needed in order to increase their production, because the technical efficiency is higher than the farmers who do not use credit.

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