Abstract
Changes in soil texture after the Merapi eruption in 2010 does not affect farmers in using the production factors, resulting in non-optimal production. This study aims to analyze the factors affecting red chili production and the level of technical, allocative, and economic efficiency of red chili farming in the Merapi eruption area, Sleman Regency Yogyakarta. This study utilized a quantitative method. A total of 80 farmers was selected as samples by using a simple random sampling method. Data were analysed using the Cobb-Douglas Stochastic Frontier production model. The input side approach analysed the allocative and economic efficiency. The results showed that only land area and manure factors that significantly affected the production of red chili. The average of farmers had reached technical efficiency level with an index of 0.826 and allocative efficiency level with an index of 0.804. However, they had not achieved economic efficiency because the efficiency level merely reached the 0.665 indexes. Meanwhile, four internal factors of farmers, namely age, education level, farming experience, and land ownership status, had an insignificant influence on technical inefficiencies.
Highlights
Chili is one of the horticulture plants that have been chosen to be cultivated because it has a high selling value
The increase in chili production in Indonesia cannot meet the increasing community needs, causing chili to influence the inflation rate almost every year. This statement is reflected in the increase in chili production in 2013, which continued to produce a deficit of up to 0.2 million tons (Ministry of Agriculture’s Renstra, 2015) due to crop failure caused by the lack of water [1]
Determination of the number of production factors tends to be influenced by the area of land owned by farmers, while the selection of species is influenced by the availability of funds and farmers’ needs in production activities
Summary
Chili is one of the horticulture plants that have been chosen to be cultivated because it has a high selling value. The increase in chili production in Indonesia cannot meet the increasing community needs, causing chili to influence the inflation rate almost every year. This statement is reflected in the increase in chili production in 2013, which continued to produce a deficit of up to 0.2 million tons (Ministry of Agriculture’s Renstra, 2015) due to crop failure caused by the lack of water [1]. According to [2], in general, the material spewed out of Mount Merapi, namely volcanic ash, hot lava, and cold lava, can cause damage to land and water resources, including agricultural infrastructure. Cold and hot lava can directly damage the agricultural land in the Merapi Eruption area as they pass through
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