Abstract
AbstractAn analytical and integrated approach to farming needs to be formulated to assist decision-making by policymakers. This is important for the sustainability of agriculture in Indonesia, especially in the Special Region of Yogyakarta, which has experienced a decrease in land area, production, and productivity in the last 5 years. This study aims to analyze the sustainability of rice farming using the sustainable-value approach, which is based on the economically efficient use of agricultural resources. Data were collected from rice farmers in 25 observation areas attached to eight river irrigation sources throughout the province. A criterion for economic efficiency has been used as a guideline for setting benchmarks for optimal input use. The study reveals that, in general, these rice farms had poor economic productivity values. The sustainable value distribution for rice farms exceeded the highest value but there was low sustained quality. This indicates the limited overall longevity but also the potential for sustainability. Therefore, in managing rice farms, economic, social, and environmental resources have to be used more effectively.
Highlights
Sustainable agriculture is critical in developing countries
This decreases land productivity and increases costs. This information raises questions regarding the efficiency and sustainability of rice farming in the province. This article addresses these questions by analyzing the sustainable value (SV) of rice farming based on economically efficient use of agricultural resources and sustainable efficiency
The estimated EE of rice farming showed that the rice farms analyzed were not yet economically efficient
Summary
Sustainable agriculture is critical in developing countries. The limited natural resources and lack of available technology necessitate increasing agricultural production to meet the growing demands of the population. Rice farming is often conducted using excessive external inputs, especially fertilizers and pesticides This decreases land productivity and increases costs. This information raises questions regarding the efficiency and sustainability of rice farming in the province. An approach was used to analyze frontier production functions to use estimations of technically efficient resource usage as benchmark values [19]. This model does not yet reflect the actual TE because the dependent variable in the production function is not technical but rather an economic variable, described by the authors as “value-added” [19], or the value of production. Building on previous SV approaches, this study used frontier cost function analyses to determine SV and cost-efficiency analyses to determine benchmarks for economically efficient resource usage
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