Income, Risks, Economic Efficiency of Rice Business and Economic Sustainability for Rice Farmers in Sambas District

Abstract

The purpose of this research to appraise the income of rice farming, to set the risk of rice production, examine the degrees of efficiency of rice farming and economic sustainability for rice farmers in Sambas Regency. The primary data used in the research was obtained using a structured questionnaire administered to 60 selected farmers. R / C ratio, coefficient of variation, and the stochastic frontier production function were used to analyze the data. The results exhibited that rice farming in Sambas Regency was profitable with income reaching Rp. 7,696,442/ha. The degree of risk faced by farmers is moderate, which is 0.5. The average levels of technical, allocative, and economic efficiency of rice farming in Sambas District were 0.811, 0.986, and 0.80. This result exhibits that paddy farmers can increase their technical efficiency and allocative efficiency to achieve economically efficient conditions. Efforts to increase higher economic efficiency can be carried out by increasing the use of management as well as improving the level of input allocation used by paying attention to input prices to achieve a minimum cost level.