Soybean supply response model in sub-optimal land in Tanjab Timur district: Application of the meta response function

Abstract

Soybean production in Jambi Province in the last decade tends to decline. This requires attention and assessment to find solutions to existing problems. The objective of study is to (1) evaluate the use of inputs and their effect on production, as well as investigate the ability of production factors, such as land and other factors to analyze supply responses; and (2) analyze soybean supply response variable to the components of input costs, gross revenue, and other variables, to produce a soybean supply response model in sub-optimal land types: Application of Meta-Response Functions. This research was done from April 2021 to June 2021 on peat land types (sub-optimal). Stratified random sampling is used based on land area. Appropriate qualitative and quantitative data analysis methods are used, calledthe Meta Response Function, which in their application are distinguished based on the research objectives, namely in the first objective using the Production Function Empirical Model, and in the second using the Meta-Response Model. The results showed that soybean farmers on peatland in the research area respond to changes in input use efficiently. Output supply is a response to soybean production. On input demand, many are sensitive to the use of labor, maintenance/harvesting labor. Theobtained production elasticity completes part of the data base needed to evaluate the policy implicationsof using alternative inputs from soybean supply and input demand.