Production factors, technical, and economic efficiency of soybean (Glycine max L. Merr.) farming in Indonesia

Author:

Rinaldi Jemmy1ORCID,Arya Nyoman Ngurah1,Mahaputra I Ketut1,Elisabeth Dian Adi Anggraeni1ORCID,Resiani Ni Made Delly2,Arsana I Gusti Komang Dana3,Silitonga Tulus Fernando4

Affiliation:

1. Research Center for Behavioral and Circular Economics, National Research and Innovation Agency - BRIN ; Sasana Widya Sarwono 6th Floor, Jalan Gatot Subroto No. 10 South Jakarta , Jakarta 12710 , Indonesia

2. Research Center for Horticultural and Estate Crops, National Research and Innovation Agency - BRIN , Jalan Raya Jakarta-Bogor , Cibinong , Bogor Regency 16915 , Indonesia

3. Research Center for Food Crops, National Research and Innovation Agency - BRIN Cibinong Science Center - Botanical Garden ; Jalan Raya Jakarta-Bogor Km 46 , Cibinong , Bogor Regency 16911 , Indonesia

4. Research Center for Geospatial, National Research and Innovation Agency - BRIN Cibinong Science Center - Botanical Garden ; Jalan Raya Jakarta-Bogor Km 46 , Cibinong , Bogor Regency 16911 , Indonesia

Abstract

Abstract Most soybean farming in Indonesia is still performed conventionally. Farmers are less interested in cultivating soybeans because the production yields are relatively small. This research aims to determine the factors influencing production, production inefficiency of soybean, and the technical efficiency (TE) and economic efficiency (EE) level of soybean farming. Primary data were collected using a survey method of soybean farmers in paddy field areas in the Tabanan Regency of Bali Province, Indonesia. Data were analyzed using the stochastic frontier approach using the Frontier 4.1 analysis tool. Factors that positively affected the increasing soybean production were land area, urea and NPK fertilizers, and soybean seeds. The factor positively affecting soybean production inefficiency was a farming experience. The average TE value was 0.77, implying that soybean farming in the study area was efficient. However, the EE value below 0.70 implied that soybean farming was inefficient. Based on soybean farmers’ farming experience, TE and EE values were getting lower. The low value of EE was suspected of causing farmers’ low interest in cultivating soybean.

Publisher

Walter de Gruyter GmbH

Subject

General Agricultural and Biological Sciences

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