Value Of Marginal Product Research Articles

Analysis of Allocative Efficiency of Watermelon Farming in Kapuas Regency, Central Kalimantan Province

The objective of this research is to analyze the costs, revenues, and profits of watermelon farming, to examine the impact of the use of production factors in watermelon farming, and to evaluate the allocative efficiency level of watermelon farming in Kapuas Regency, Central Kalimantan Province. The population of this research consists of 113 farmers, from which 55 were selected using simple random sampling techniques. The data processing method used to analyze the costs, revenues, and profits of watermelon farming includes using a multiple linear regression model, specifically the Cobb-Douglas function type. Additionally, to analyze the allocative efficiency of production factors used by farmers in watermelon farming, the comparison of a production factor’s Marginal Product Value (MPVx) with the price of the production factor (Px) is set to be equal to 1. Based on the results of the research and data processing, the average revenue obtained from watermelon farming in Kapuas Regency is IDR 75,619,181.82 per farm, and the average profit earned by watermelon farmers is IDR 45,541,259 per farm. The statistical test results of the Cobb-Douglas production function show that collectively (simultaneously), the production factors (land area, number of seeds, organic fertilizer, inorganic fertilizer, pesticides, and labor) significantly affect watermelon production. However, the partial test results indicate that the production factors of land area, seeds, organic fertilizer, inorganic fertilizer, and labor significantly affect watermelon production, except for the production factor of pesticides. The statistical test results for allocative efficiency (price efficiency) show that three production factors, namely organic fertilizer, labor, and pesticides, are used efficiently, meaning the marginal product equals the price of the production factor. The use of land area, seeds, and inorganic fertilizer is not yet efficient and needs to be increased to reach an efficient point.

Resource productivity and allocative efficiency in improved cassava (Manihot esculenta) -based mixed cropping system in Ebonyi State, Nigeria

Over 60% of the cassava-producing households in Nigeria have adopted the cultivation of improved cassava varieties resulting in increased cassava yields and output. Yet, the attainment of domestic production level that would cope with the domestic consumption and the needs for the export market can only be achieved if the technical efficiencies of smallholder farm resources are upgraded and the cassava farmers become more efficient in the allocation of these resources. This study examined the resource productivity and allocative efficiency in improved cassava-based mixed cropping system in Ebonyi State, Nigeria. A multistage sampling procedure was employed to select a total of 120 respondents (comprising 60 adopters and 60 non-adopters of improved cassava-based mixed cropping system) on whom structured questionnaires were administered during the 2022/2023 cropping season. Inferential statistics involving the Cobb-Douglas production function and descriptive statistics were used for data analysis. The regression results revealed that all the five resource inputs for the adopters and four inputs excluding agrochemicals for non-adopters of the improved cassava-based mixed cropping system positively contributed to output of the respondents in the area. The results further showed that most of the resource inputs were of higher productivities under the adopters than the non-adopters. The result of the deviation from unity of the ratio of the Marginal Value Product (MVP) to Marginal Factor Cost (MFC) revealed that the adopters were more efficient in the allocation of land, cassava stem cuttings and miscellaneous variable capital inputs than the non-adopters. Constraints to increased cassava production in the area include lack of finance, high cost of farm inputs, among others. Policy measures aimed at liberalization of agricultural credit schemes to enhance farmers’ access to essential farm inputs, introduction of labour-saving techniques to farmers among others were recommended towards increased production and profitable cassava value chain business in Nigeria

Resource use Efficiency in Carnation Production under Polyhouse Conditions in Himachal Pradesh, India

Floral expressions often capture the depth of emotions and sentiments that surpass the capabilities of verbal communication. The practice of flower farming within polyhouse conditions has emerged as a burgeoning segment within the agricultural domain, offering substantial revenue opportunities. This is particularly relevant in terrains characterized by hilly topographies, such as Himachal Pradesh, where agricultural land is scarce, with an average of 0.12 hectares of cultivable land and 0.02 hectares of irrigated land per capita. Such limitations necessitate an agricultural paradigm focused on maximizing returns per unit of area, labor, and capital investment. The research undertook an analytical journey in the Bilaspur district of Himachal Pradesh to scrutinize the efficiency of resource utilization in the cultivation of carnations under polyhouse conditions. Engaging a cohort of 60 polyhouse-utilizing farmers, selected through proportional allocation across two blocks of the district, the study unveiled that the utilization efficiencies, as measured by the marginal value product (MVP) to price ratios, were highest for manure (5.78), followed by pesticides (3.55), and labor (2.04), each exceeding the unity threshold. This indicates that augmenting the input of these resources could potentially amplify returns.

Economic analysis of potential of citrus and walnut fruits by artificial neural network

South Asian countries have a wealth of opportunities to use the rainfed lands to the farmers’ advantage with the largest amount of rainfed land. The economic circumstances of the farmers operating in these areas are appalling due to the inefficient use of these lands. The work reported in this paper was carried out in the Jammu, Kathua, and Udhampur districts of the Jammu division. Two horticultural crops, viz., citrus and walnuts, were discovered to be cultivated in the chosen sample location. The influence of several elements to the financial potential of these horticultural crops was investigated using production functional analysis and marginal value productivity (MVP). The use of artificial neural networks (ANNs) further assisted this. According to a production functional analysis, the main variables in the districts of Udhampur and Kathua are machine labour and fertilisers, followed by human labour and fertilisers in the Jammu district. However, sensitivity analysis revealed the importance of manure, fertilisers, and manpower. In the rainfed portions of Jammu division, manpower combined with fertilisers is often thought of as the key determining factor for the profitability of horticulture crops like citrus and walnut. The absence of better varieties was identified via Garett ranking as the main restriction, followed by a lack of knowledge and expensive inputs, respectively.

Economic and Profitability Analysis of Walnut Production in Kashmir Valley, India

The Jammu and Kashmir union territory is the largest producer of walnuts in India, and this crop provides an important source of livelihood for many farmers. This study aims to measure the economic efficiency and profitability of walnut orchards and explore constraints in cultivation in the Kashmir Valley. It relies on a crosssectional database collected from 240 walnut growers in the study area during the 2018/19 production period. Results reveal that walnut cultivation is highly laborintensive as it incurs 80 percent of total production costs. The cost-benefit ratio of 1:5.35 per hectare indicates better economic prospects for the walnut industry in Kashmir Valley. The factors affecting productivity include farmyard manure, labor, chemical fertilizers, plant density, women participation, and information. The regression coefficients of production analysis, marginal value product, and marginal factor cost ratio indicate that there is ample scope for the expansion of walnut cultivation in the research area. However, walnut growers are confronted by several problems that tend to be location specific. The study calls for policy intervention concerning improved access to extension services, credit, and farmer training programs to boost walnut production in the study region.

Efisiensi Alokatif Usahatani Sorgum Di Desa Ondorea Barat Kabupaten Ende

Sorghum plants have the potential to be developed in Ende Regency, this commodity has been passed down from generation to generation and has become an alternative food to replace rice, but its productivity is still relatively low. Research objectives (1) to find out whether sorghum farming has achieved efficiency both technically and allocatively (2) to find out the factors that influence the technical efficiency of sorghum farming. The sample method uses simple random sampling, the sample size is 92 farmers. Data analysis, stochastic frontier production function. Sorghum farming is said to be allocatively efficient if the marginal product value (NPM) of production factors is the same as the price. Factors that influence production, seeds, land area and labor. Maximum technical efficiency value 0.92, minimum 0.70. Average technical efficiency 0.83. NPMx/Px for seeds, land area and labor < 1, the conclusion is that these three variables are not allocatively efficient. Factors that influence technical efficiency are age, farming experience, formal education dummy, farmer group membership and family size.

Resource Use and Economic Potential of Chickpea Cultivation in Haryana, India

The study was conducted in Bhiwani, Dadri and Mahendragarh districts of Haryana during the year 2021-22. Budgeting technique was employed to draw practical implications and production function was used for measure the extent of resource use in chickpea cultivation for taking policy decisions to encourage its cultivation in Haryana. The Negative growth rates of area and production of chickpea was observed in Haryana during last two decades (2000-01 to 2020-21). In same period owing large replacement of area towards mustard and wheat. The gross and net returns of Chickpea cultivation in Haryana worked out were Rs. 75842 ha-1 andRs. 21550 ha-1. The value of B:C ratio was 1.40 over total cost. The Marginal value productivity (MVP) Value of Chemical fertilizer, plant protection chemicals, machinery and irrigation was greater than unity for Bhiwani, Dadri, Mahendragarh and Haryana which indicates that these inputs were underutilized in the respective districts and Haryana. On the other side, the value of MVP were less than unity for Human Labour and seed in all districts indicating that these resources were over utilized, needs to be curtailed for higher returns. The major Constraints faced by Chickpea growers were unavailability of improved varieties in local market (85.83%), Price realization less than M.S.P./underpricing their produce (80.83%), Non-adoption of package of practice/ low input used (75.83%) and high incidence of insect-pest (64.17%).

An economic effect assessment of extension services of Agricultural Extension Model Sites for the irrigated wheat production in Iran

Agricultural extension is a key policy to accomplish sustainable agricultural development by improving farmers’ knowledge. Agricultural Extension Model Sites (AEMSs) is a new agricultural extension approach for empowering farmers in Iran. Therefore, the purpose of this research is the economic effect assessment of extension services of AEMSs for irrigated wheat production in Iran. Surveys were conducted with 180 people of the main farmers from irrigated wheat AEMSs throughout Iran. The research tool was a questionnaire, the validity of which was examined using the opinions of a group of experts from the Agricultural Education and Extension Institute in Iran. Data analysis was done using econometric analysis and One-way ANOVA analysis through SHAZAM11 and SPSS27 software. Results showed that the extension services significantly affected irrigated wheat yield with an average increase of 0.66 t/ha. Based on the results, out of the Marginal product value ($69 USD) of the extension services provided to the main farmers, 13.3% ($9 USD) had been spent as the cost of extension services and 86.7% ($60 USD) had been net profit gained by farmers. Farmers’ behaviors changed as a result of the AEMs with reduced input costs for growing the crop and increased production and profit from the crop.

Resource Use Efficiency of Cucumber (Cucumis sativus L.) in Sultanpur District of Uttar Pradesh, India

his study was designed to measure the profitability and resource use efficiency of cucumber production during agricultural year 2021-22 in Sultanpur district of Uttar Pradesh. The study utilized a multistage stratified purposive cum random sampling technique to select districts, blocks, villages, and respondents. Using a pre-tested questionnaire, primary data and information were collected from 100 cucumber producing farmers, categorized in 66 marginal, 23 small and 11 medium farmers were chosen from the five villages in the Dubeypur block of the Sultanpur district. For functional analysis, Cobb - Douglas production function was employed for estimating resource use efficiency. The t-test for testing the significance of factor elasticities and the F-test for testing the significance of R2 were used. The study revealed that return to scale was found to be increasing in cucumber production and Marginal Value Product was more than one in all the cases except few, which indicate the further chance of investment on variable inputs to get the optimum income. Through comprehensive analysis of financial efficiency measures, it has been revealed that marginal farms exhibit greater profitability in terms of farm business income compared to small and medium-sized farms.

Efficiency of Resource Allocation of Large Cardamom Production: A Case for Nepal East Corridor

Aim: This research aimed to assess the resource allocation efficiency of large cardamom production in Nepal east corridors.
 Method and Duration of Research: A comprehensive analysis of socio-economic characteristics and economic aspects of large cardamom production was conducted using data collected in 2022 in eastern corridor Nepal with 480 samples.
 Result: The socio-economic characterization of large cardamom farmers revealed that the majority of households were headed by males (75.4%), and most had kacchi and semi-pakki houses (77.3%). Nuclear families were more prevalent (71.9%) than joint families (28.1%). Basic education was the most common educational level among household heads (51.7%), and Aadibasi/Janajati was the predominant ethnic group (52.9%). The study identified significant associations between family types and members abroad with the study corridors (p < 0.05). The economic analysis revealed the capital costs and labor costs involved in large cardamom production over a six-year period. Gap filling had a significant positive impact on Marginal Value Product (MVP), increasing it by 182.21 units (99.45%). However, certain factors like chemical costs had a negative impact on MVP, reducing it by 38.33 units (102.61%). Resource use efficiency analysis showed that labor for postharvest activities positively influenced MVP, increasing it by 1.52 units (34.27%). On the other hand, transportation labor had a negative impact, decreasing MVP by 9.89 units (110.11%).
 Conclusion: The study contributes valuable insights for policymakers, researchers, and farmers in understanding the socio-economic and economic dimensions of large cardamom farming in the study area. Addressing gaps in production, optimizing resource utilization, and focusing on postharvest activities can lead to improved resource efficiency and higher returns for farmers. The findings are crucial for designing targeted policies and interventions to support the large cardamom farming community and promote sustainable agricultural practices.

Analysis of Input Optimization for Cassava (Manihot esculenta) Production in the Marga Tiga Sub-District East Lampung District

This study aims to ascertain how production inputs affect cassava farming production and examine how to use production inputs as efficiently as possible. The research location was selected because the research area is a center for cassava production. The Cobb-Douglas production function model is an analytical technique used to assess how production inputs affect cassava output. Analyze the level of input utilization optimization at the same time by comparing the marginal product's value to other inputs. The study's variables included land area, labor, seeds, urea-fertilizer, NPK-fertilizer, ZA-fertilizer, SP36-fertilizer, herbicides, and production yields. The result of this research is that production inputs simultaneously influence cassava production. Several production inputs used in cassava farming in Marga Tiga District are still not optimal and need to be added, including land area, organic fertilizer, urea fertilizer, and ZA fertilizer. Meanwhile, several other production inputs, namely labor, seeds, NPK fertilizer, SP 36 fertilizer, and herbicides, are not optimal, so farmers need to reduce them.

Economic Efficiency of Rice Farming: A Performance Difference among Agricultural Insurance Participant and Non-participant Farmer

Agricultural insurance is a risk-sharing business arrangement to protect farmers who encounter problems with adverse selection and moral hazards caused by asymmetric information. This situation leads to market inefficiencies since people with more information commonly take advantage of less informed people. This study aimed to compare the performance difference in the economic efficiency of rice farming between Rice Farming Insurance (RFI) participants and non-participant farmers. Primary data were collected from 202 farmers in Tangerang Regency. The marginal value product–marginal factor cost (MVP-MFC) approach was utilized to estimate resource use efficiency in rice production. The t-test was applied to determine differences in input allocation. The MVP-MFC discovered that the use of seeds was efficient for RFI participant farmers. Meanwhile, land, organic fertilizer, and pesticide had not been efficient, and inputs of inorganic fertilizer and labor were inefficient. Conversly, non-participant farmers indicated that the use of land, seeds, organic fertilizers, and pesticides had not been efficient, but the use of inorganic fertilizers and labor was inefficient. However, the comparison test revealed no difference in the input allocation efficiency between RFI participants and non-participant farmers. Hence, innovation in media and extension methods were required to change farmers’ behavior. Government policies were also necessary to ensure the availability of inputs. In addition, avoiding adverse selection and moral hazards in agricultural insurance was required to identify hazardous groups.

Efficiency of Resource Use in Rainfed Maize Production System by Small-Scale Farmers in Central Agricultural Zone of Cross River State, Nigeria

The study determined resource use efficiency in maize crop production by small-scale farmers in the Central Agricultural Zone of Cross River State Nigeria. It specifically examined the allocative efficiency of resources used by small-scale farmers in rainfed maize production in the area. Primary data were used to conduct the study. Statistical tools employed were multiple regression analysis and allocative efficiency index (AEI). The results of the multiple regression analysis revealed that the variables of farm size (x1), farm capital (x3), fertilizer (x4), farm credit (x6), extension service (x7), seeds planted (x8) had a positive relationship with the output of maize. The allocative efficiency index (AEI) of the various productive resources showed that farm size (x1), fertilizer (x3), and herbicides (x5) were found to be underutilized since their allocative efficiency index (AEI) was greater than one (1) and their marginal value product (MVP) were greater than their marginal factor cost (MFC) while Labour(x2) was over-utilized as the allocative efficiency index (AEI) was less than one (1). Based on these findings, the following recommendations were made; maize farmers should improve their use of productive resources such as land, capital, fertilizers, herbicide and seeds. Labour factor should be maximally utilized to create a favourable return to a unit of man day employed in maize production in the area.

Efisiensi Alokatif Usaha Tani Paprika di Kecamatan Cisarua

Cultivation of bell peppers by farmers in Pasirlangu Village, Cisarua District, West Bandung Regency, tends to reach less optimum production, indicated by the average production per crop. The purpose of this study is to evaluate three aspects: (1) factors that affect productivity, (2) allocative efficiency, and (3) income of paprika farming in Pasirlangu Village. The Ordinary Least Squares method was used to analyze factors affecting productivity, the Marginal Product Value method to assess allocative efficiency, and the R/C ratio to calculate cultivation profits. The results showed that labor and seed inputs are inputs that have a significant effect on the productivity of agricultural businesses. In the efficiency analysis, seed input and husk charcoal are not efficient inputs, so these inputs need to be added. The income analysis shows that the paprika farming business in Pasirlangu Village is still profitable even though it is not optimal, as indicated by the ratio of profits and costs, which is > 1.
 
 Keywords: bell pepper, income analysis, marginal product value, ordinary least squares, R/C ratio

Allocative Efficiency of Pontianak Siam Orange Farming in Sambas Regency, Indonesia

In Sambas Regency, 95% of the oranges are contributed by Siame oranges. Citrus farmers have a dilemma in that they don’t know whether or not production elements are used effectively. The purpose of this study is to identify the production and farming efficiency parameters for Siamese oranges. The study was carried out in Sambas Regency’s Tebas District, a hub for Siam production. A survey method is employed in the research. There are 100 Siam orange growers who responded, and purposeful sampling was used to collect the data. Data is handled using SPSS version 21 for the analysis of the Cobb-Douglas production function. The Marginal Value Product and the Mean Factor Production Price (Px) are compared in a factor efficiency analysis. The findings indicated that the usage of production elements, such as land, family labor, labor performed by people outside the family, the quantity of urea fertilizer, SP-36 fertilizer, NPK fertilizer, and insecticides are all ineffective. This calls for a reduction in the utilization of all production factors.

Production Function and Resource Use Efficiency of Milk Production in Rural Punjab

Aiming to make an empirical assessment of the resource use efficiency in milk production of different milch breeds in rural Punjab, the present study reveals that both green fodder and concentrates in case of buffalo milk production and concentrates alone in case of crossbred cow milk production, have been found as significant factors affecting the milk yield in rural Punjab. However, not even a single input is found as statistically significant for local cow milk production. The marginal value productivity of all inputs is worked out as positive in the case of buffalo and crossbred cow milk production, but negative for local cow milk production. The deviation of marginal value productivity of inputs from its unit price reveals resource use inefficiency in the study.

Irrigation water demand management to address water scarcity

Improving irrigation water productivity is one of the most important ways to deal with water scarcity. Water pricing is considered a crucial tool for water demand management. This research aims atestimating the price elasticity of irrigation water demand in public and private areas of Nadhour using an Ordinary Least Squares regression (OLS). The paper assesses the economic performance of farming system and compares the value of marginal productivity (VMP) of irrigation water to the prices of water. A structured questionnaire and field visits were used to collect data from 140 farmers. Results show that irrigation water demand is less responsive to water price variation. Estimated elasticities are-0.69 and -0.44 respectively in the public and private schemes. The total irrigated area and farmers’ status are the most significant determinants of water demand. Results showed that water productivity in private farming systems is higher than recorded in public farming systemsand the VMP of irrigation water exceeds the prices paid for water

Resource Use Efficiency in Paddy Cultivation: A Comparative Study of Telangana Sona and Chintu Varieties in Nalgonda District of Telangana State of India

The present study was undertaken to assess the resource use efficiency in the cultivation of the rice variety, Telangana Sona. A total sample of 120 farmers from 6 villages of three mandals in Nalgonda district of Telangana was selected. Cobb-Douglas production function analysis was used to study resource use efficiency. The results of the study revealed that in the cultivation of Telangana Sona, human labor, machinery, and fertilizers were underutilized and there is a scope for maximizing returns by increasing the use of these inputs. The Marginal Value Product (MVP) was less than one for costs incurred on plant protection chemicals, which means that the resource was over-utilized i.e. decrease in the use of this input is suggested. The study recommends the reallocation of resources for profitable rice cultivation.

Resource Use Efficiency (RUE) in Lentil Production in Terai and Inner Terai Regions of Nepal

A study was carried out to estimate and analyze the profitability and resource use efficiency of lentil grain and seed production in Nepal's terai and inner terai regions. Using a pre-tested questionnaire, primary data and information were collected from 300 lentil grain producing farmers, categorized by local seed users, improved seed users, and 100 seed producing farmers in Kailali, Dang, and Siraha districts. The study revealed that the B:C ratio in lentil seed production was higher (1.59) than in lentil grain production (1.41). The benefit in both grain and seed production realized by farmers was mainly due to increased prices rather than production. Return to scale was found to be increasing (1.016) in lentil grain production using local seed, but it was decreasing at a rate in lentil grain production using improved seed (0.854) and in lentil seed production (0.822). Analysis on resource use efficiency revealed that labor input is excessively overused, reflecting the Marginal Value Product of less than unity in lentil production. To get the maximum profit from lentil grain production using improved seed, input use in land preparation, threshing, and post-harvest should be increased while decreasing the amount of other inputs.

Structural Pattern and Growth Analysis of Rice Production in Odisha

Even though rice has high importance for food security and agricultural GDP in the agrarian economy of Odisha, production is constrained by several factors. The trends, patterns, and instability of key production parameters such as area, yield need to be studied to suggest insightful measures for the development of rice cultivation in the state. The resource use efficiency also assumes significance to determine the profitability of rice production. The study used both secondary and primary data and analyzed trend, instability, and resource use efficiency using compound annual growth method (CAGR), Cuddy-Della Valle Instability Index, and Cobb-Douglas production function respectively. While the area under rice in Odisha marked a negative annual growth (-0.18), the yield and productions have shown significant positive growth of 1.95 and 1.76% respectively for the period of 1960-2019. In respect of instability in production and productivity, moderate variability was observed. However, for the area, the instability is very less. The production function analysis has shown excessive usage of significant resources like labor, fertilizers, and pesticides. The ratio of marginal value product and marginal factor cost for these inputs were much less than one, thus suggesting resource use optimization for profit maximization. The considerable variability in rice production, area and productivity in Odisha should be responded with strategic and sustainable measures.