Technical Efficiency and the Factors that Affect it in Rice Production in Central Sulawesi of Indonesia

Abstract

Most of the population of Asia depends on consuming rice to support their lives. This implies that rice production needs attention. The existence of inefficiencies in lowland rice production could reduce rice yields for consumption, so the measurement of technical efficiency in lowland rice production needed to be studied. This research aimed to analyze the level of technical efficiency in lowland rice cultivation and identify the factors that affected it. The research was done in Palolo and Torue Sub-District Indonesia. The number of samples used was 249 lowland rice farmlands consisting of 106 farmers of organic lowland rice cultivation and 143 farmers of inorganic lowland rice cultivation. The results show that land, fertilizer, seeds, and labor had a positive and significant effect on lowland rice production. The average technical efficiency of lowland rice cultivation was around 78.2%. The results also show that manager education, extension contacts, superior seeds, and organic lowland rice cultivation have a significant effect on the level of technical efficiency in lowland rice production. We concluded that there was an opportunity for farmers to increase lowland rice yields if they could manage production factors in an efficient manner. The government could provide support for farmers, such as formal and informal education, extension, superior seeds, and ready-to-use organic materials.