Shallot is one of the potential horticultural commodities. The purpose of this study is to estimate the production function and efficiency of shallot farming. The method used in the study is the estimation of production functions using stochastic frontier. The data used in this study were shallot production (kg), harvested area (m2), labor used (HOK), use of seeds (kg), fertilizer (kg), pesticides used (kg), sourced from SHR2014 which conducted by the Central Statistics Agency. In the estimation process, all variables are transformed by natural logarithms. The results showed that the estimation of the function of shallot production for both the dry season and the wet season with independent variables included harvested area, labor, seeds, fertilizers, and significant pesticides in the model, so that formed model was valid for further use. The average technical efficiency of shallot farming in the dry and wet season is 0.6626 and 0.6627, respectively, which means that in general, shallot farming in Indonesia is not efficient on the technical side. That is, there are indications that the optimal processing technology of production inputs in the business has not been carried out optimally.

This study aims to analyze empirically the impact of adoption of certified seeds on household cost efficiency of seasonal horticultural cultivation. This study uses data from Cost Structure of Horticultural Cultivation Household Survey (SOUH) 2018, Statictics Indonesia. The cost inefficiency variable is estimated using a one-step stochastic frontier. The results of the descriptive data show that labor costs are the biggest costs in the seasonal horticultural cultivation. On average, the proportion of households that adopt certified seed is still lower than households that do not adopt certified seed. In addition, the cost composition between adopters and non-adopters is different. The results of the stochastic frontier analysis show that the adoption of certified seeds has a positive effect on cost inefficiency, meaning that the adoption of certified seeds actually increases cost inefficiency/reduces cost efficiency. The impact of adopting certified seeds has not yet been felt by farmers because it has not lasted long.