Technical efficiency and factors affecting rice production in tidal lowlands of South Sumatra province Indonesia

Abstract

Rice has been the staple food for most Indonesians, so the rice consumption in Indonesia is considerably high. Rice is cultivated in many agroecosystems, including tidal lowlands. Some tidal lowlands are considered suitable for rice cultivation. Therefore, tidal lowlands may support food security in Indonesia. However, productivity remains a problem in which inputs are not used efficiently. This study aims to determine the technical efficiency and identify factors affecting rice production in tidal lowlands of South Sumatra, one of main rice barns in Indonesia. A survey was conducted by interviewing 93 farmers in Telang Rejo Village. A data envelopment analysis (DEA) with output-oriented and variable returns to scale (VRS) approach was applied to measure technical efficiency score from each farm observed. An ordinary least square (OLS) regression with a Cobb-Douglass production function approach was employed to analyse the factors affecting rice production in tidal lowlands of South Sumatra, Indonesia. The results showed that majority of rice farms in the tidal lowlands of South Sumatra Indonesia were inefficient. There were 44 rice farms (47.31%) that were efficient, 5 rice farms (5.38%) that were inefficient under increasing returns to scale and 44 rice farms (47.31%) that were inefficient under decreasing returns to scale. The inputs, such as nitrogen, phosphorus, and potassium fertilisers, herbicides, insecticides and fungicides had positive significant influences on rice production in the tidal lowlands of South Sumatra, Indonesia.