Determinant of Technical Efficiency of Sugarcane During the Covid 19 Pandemic in Malang Regency East Java Indonesia

Abstract

Sugarcane farmers in sugar-producing countries are experiencing an economic crisis due to the Covid 19 pandemic. Restrictions on transportation and a scarcity of labor have delayed sugarcane harvesting, increased production costs, decreased productivity, and decreased income. Therefore, our research aims to measure the technical efficiency and the influence of environmental factors on the technical efficiency of sugar cane farming in Malang Regency. The results of the research using the multiple bootstrap regression approach show that the efficiency values based on the VRS and CRS assumptions are 0.854 and 0.834. This value means that sugarcane farmers in Malang Regency must reduce the use of inputs by 16.6% and 14.6% respectively to make sugarcane farming more efficient. The variable age of the head of household reduces technical efficiency, while the variables of sugarcane training experience, organizational experience, ratoon cane, and increases in input prices have the potential to increase technical efficiency. The Covid 19 pandemic has become a momentum for policy makers to create training programs that aim to utilize natural resources to overcome scarcity and rising input prices, as well as realize agricultural sustainability.