The Determinants of Technical Efficiency of Oil Palm Smallholders in Indonesia

Varina, Firna; Hartoyo, Sri; Kusnadi, Nunung; Rifin, Amzul

doi:10.32479/ijefi.10594

Cited by 3 publications

(6 citation statements)

References 11 publications

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“…This shows that the majority of palm oil farmers receive counseling and they tended to have a higher value of technical efficiency than the farmers who do not receive counseling. This is constituent with the finding of Alwarritzi et al 18 and Varina et al 4 , 8 . Related with the research above, the Government has been improving the program, that is offered the extension service to follow the training and education specially how they use the technology communication system so the target of extension service in transforming the skill and expertise to the farmer will be more easily and effecting to be implementing, so this also as a part of policy.…”

Section: Resultssupporting

confidence: 92%

“… , and are the weight of each age category. According to Varina et al 4 , the value of , and are 0.81, 1 and 0.98 respectively.…”

Section: Methodsmentioning

confidence: 96%

“…Technical efficiency is influenced by several factors. Varina et al examined the effects of many factors on the technical efficiency of oil palm plantation, including the age of the farmers, education, extension services 4 . The result showed that age, education and extension service significantly affect the technical efficiency.…”

Section: Introductionmentioning

confidence: 99%

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Analysis of factors affecting the technical inefficiency on Indonesian palm oil plantation

Abdul

Sari

Haryanto

et al. 2022

Sci Rep

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Indonesia’s palm oil plantation is dominated by three actors. Among three actors, the productivity of smallholder farmers has the lowest productivity. This study aims to analyze the value of technical efficiency and factors affecting the technical inefficiency of palm oil plantations in Indonesia by using the stochastic frontier analysis based on the translog production function. The data used in this study are taken from the Central Statistics Agency (Agricultural Business Household Income Survey) in 2013. The number of samples used was 14,367 farmers. The results revealed that the average value of technical efficiency (58.32%) is still far to reach its optimal, showing that there is still to increase in the efficiency of palm oil plantations in Indonesia. The production function suggests that increasing the number of trees can help to increase the number of outputs. To enhance the technical efficiency, education, age, planting system, seed quality, extension service, and plasma farmer are the significant factors.

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Section: Resultssupporting

confidence: 92%

“… , and are the weight of each age category. According to Varina et al 4 , the value of , and are 0.81, 1 and 0.98 respectively.…”

Section: Methodsmentioning

confidence: 96%

See 1 more Smart Citation

Analysis of factors affecting the technical inefficiency on Indonesian palm oil plantation

Abdul

Sari

Haryanto

et al. 2022

Sci Rep

View full text Add to dashboard Cite

show abstract

“…This shows that the majority of palm oil farmers receive counseling and they tended to have a higher value of technical efficiency than the farmers who do not receive counseling. This is constituent with the finding of Alwarritzi et al (2015) and Varina et al (2020). The coefficient of plasma farmers has a negative value and significant in technical inefficiency, showing that the plasma farmers are more efficient than non-plasma farmers.…”

Section: Resultssupporting

confidence: 90%

“…(2) calculating the WT by using the two-age yield profiles from the literature 4 . This study used the second method by following Varina, Hartoyo, Kusnadi and Rifin 12 . The weighted trees can be defined as:…”

Section: Data and Variablesmentioning

confidence: 99%

Analysis of Factors Affecting the Technical Inefficiency on Indonesian Palm Oil Plantation

Abdul¹,

Sari²,

Haryanto³

2021

Preprint

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This study aims to analyze the factors affecting the technical inefficiency of palm oil plantations in Indonesia by using the stochastic frontier analysis based on the translog production function. The data used in this study are taken from the Central Statistics Agency (Agricultural Business Household Income Survey) in 2013. The number of samples used was 14367 farmers. The results revealed that there is still to increase in the efficiency of palm oil plantations in Indonesia. The production function suggests that increasing the number of trees can help to increase the number of outputs. Additionally, education, age, planting system, seed quality, extension service, and plasma farmer significantly influence the technical efficiency of palm oil plantation.

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Determinants of Wheat Productivity among Smallholder Farmers in Ngororero District, Rwanda

Gabriel

Majiwa

Mulyungi

2023

EJBSM

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Purpose: This study investigated the factors influencing wheat productivity in Ngororero district of Rwanda. Wheat is a major food security crop in many countries and has a significant role in poverty reduction, food security and income generation among households in many countries. In Rwanda wheat is a source of food and income and ranks second to maize. Despite its importance, wheat productivity in Rwanda remains low. Methodology: Simple random sampling method was used to select a sample of 100 wheat farmers and an interview schedule was adopted to collect the data from the respondents. The collected data were first entered in MS Excel and then exported to SPSS for editing, coding, classification and then analysed with relevant statistical analysis tools. In addition to SPSS, Frontier 4.1 software was also used to generate outputs necessary for the data analysis. The data were analyzed using a linear regression model and stochastic frontier model. Findings: The ordinary least square estimates revealed that seeds, labour, organic fertilizer and education were significant and influenced wheat productivity among the smallholder farmers in Ngororero district. The maximum likelihood estimates indicated that inputs such as farm size, seed, labour, and organic fertilizer influenced wheat productivity positively while inorganic fertilizer influenced it negatively. Socio-economic factors such as age and farmers’ group membership reduced inefficiency while education and household size increased inefficiency among smallholder wheat farmers in Ngororero district. The estimated technical efficiency scores (TE) ranged from 3% to 100% with an average of 49%. Unique Contribution to Theory, Practice and Policy: Since the calculated likelihood ratio value (23.107) was less than the critical value (26.22) of at 12degrees of freedom at 1% level of significance, it means that the null hypothesis is accepted and all the coefficients of the second order in the translog function were equal to zero. Thus, the Cobb-Douglas frontier production function adequately captured the production pattern of wheat farmers in Ngororero district. The estimated value of gamma parameter ( ) which is the ratio of the variance output to variance of error was 0.999 and highly significant at 1% level. It is in accordance with the theory that true -value should be greater than zero. The estimated value of is significantly different from zero indicating that random error is playing a significant role in explaining the variation in wheat production and this is evident especially in case of agriculture where uncertainty is assumed to be a main source of variation. However, it should be noted that 99.9 percent variation in output was due to differences in technical inefficiency and the remaining 0.1 percent was due to stochastic random error. The likelihood ratio test is significant at 1% implying that the inefficiency effects are highly significant in the stochastic frontier model. Based on the findings, the study recommends that there is need to enforce and improve mechanisms to avail the required amount of inputs to farmers and at the right time, and to encourage a big number of wheat farmers to join different farmer associations and the cooperatives available in the study area as it was found that being a member of a group enhanced technical efficiency and therefore enhanced the productivity capacity of the farmers through acquisition of inputs such as fertilizer or certified seeds.

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The Determinants of Technical Efficiency of Oil Palm Smallholders in Indonesia

Cited by 3 publications

References 11 publications

Analysis of factors affecting the technical inefficiency on Indonesian palm oil plantation

Analysis of factors affecting the technical inefficiency on Indonesian palm oil plantation

Analysis of Factors Affecting the Technical Inefficiency on Indonesian Palm Oil Plantation

Determinants of Wheat Productivity among Smallholder Farmers in Ngororero District, Rwanda

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