Abstract
Partnership arrangement leads to differences in the production and management of mustard farming between partner farmers and non-partner farmers. Partnership can affect input and output prices, cultivation techniques, and productivity of mustard. The objectives of this study were to identify factors that affect farmer participation in partnerships, effects of partnership on efficiency, and factors affecting inefficiency in mustard farming. The research used cross-sectional data from a sample of 70 mustard farmers, consisting of 35 farmers with partnership arrangement and 35 farmers with no partnership. The methods used were logistic regression analysis, stochastic frontier production function, and dual cost function. The research results show that factors affecting farmers to get involved in partnership are productivity and income. By participating in partnerships, farmers’ farming will be more technically efficient but allocatively and economically inefficient. Factors affecting technical inefficiency include education, number of family members and participation in partnerships. The results of the research also show that partnerships may create opportunities to the farmers to increase their farming productivity. However, they still need facilitation or assistance from the government or local institutions especially in formulating the contract agreement.
Highlights
Horticulture is an agricultural sub-sector that is strategic and important, because its role as food pattern of hope
The efficiency level achieved by the partner farmers is technically efficient with an average value of 0.91, but it is not allocatively efficient and economically efficient with the average values of 0.41 and 0.37 respectively
The efficiency level achieved by the non-partner farmers is technically efficient with the average value of 0.89, but it is not alocatively and economically efficient with the average values of 0.47 and 0.42 respectively
Summary
Horticulture is an agricultural sub-sector that is strategic and important, because its role as food pattern of hope. According to the Dirjenhorti (2016), horticultural commodities especially vegetables play an important role for the balance of food consumption; it must be available at any time in sufficient quantities, good quality, safety, affordable prices and can be accessed by the communities. One vegetable commodity demanded by the communities is mustard. The Indonesian mustard consumption increased positively by 40.27% from 2014 (1.49 kg/capita/ year) to 2015 (2.09 kg/capita/year) (Pusdatin, 2016). A mustard plant contains minerals, vitamins, proteins and calories. The parts of the mustard that are used for both fresh and processed food are the leaves or flowers (vegetables). The mustard plant becomes a potential and prospective vegetable commodity in Indonesia
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