Sustainable value of rice farm based on economic efficiency in Yogyakarta, Indonesia

Abstract

Abstract An analytical and integrated approach to farming needs to be formulated to assist decision-making by policymakers. This is important for the sustainability of agriculture in Indonesia, especially in the Special Region of Yogyakarta, which has experienced a decrease in land area, production, and productivity in the last 5 years. This study aims to analyze the sustainability of rice farming using the sustainable-value approach, which is based on the economically efficient use of agricultural resources. Data were collected from rice farmers in 25 observation areas attached to eight river irrigation sources throughout the province. A criterion for economic efficiency has been used as a guideline for setting benchmarks for optimal input use. The study reveals that, in general, these rice farms had poor economic productivity values. The sustainable value distribution for rice farms exceeded the highest value but there was low sustained quality. This indicates the limited overall longevity but also the potential for sustainability. Therefore, in managing rice farms, economic, social, and environmental resources have to be used more effectively.