Economic Efficiency and Scale of Rice Production in Bogor District

DOI

10.2991/absr.k.220305.040How to use a DOI?

Keywords

lowland rice; farming; production factors; business scale; economic efficiency

Abstract

Setting cropping patterns in the use of paddy fields is one of the important steps that determine the income, use and distribution of farmer’s labor. This research is a descriptive research which is carried out by utilizing secondary production data, cost analysis in Bogor Regency. Analysis using regression equations, scale of business and economic efficiency by determining the area of rice fields and farmer’s labor with other production factors. the added value of the regression coefficient of the production factors is 0.84 < 1. This indicates that rice farming in Bogor Regency follows the rule of Reduction to scale, which means that the addition of production factors exceeds the proportion of additional production yields. Therefore, it must reduce the average farming costs so as to increase profits. The results of the analysis of the economic efficiency of farming that the comparison value between the value of the marginal product and the price of each production factor is 0.83 for the land area production factor, 0.28 for the labor production factor, 20,98 for urea fertilizer, and 4.36 for KCl fertilizer which has more value from 1 is already efficient.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Yunus Arifien
AU  - Sari Anggaawati
AU  - Iis Anisa Yulia
PY  - 2022
DA  - 2022/03/10
TI  - Economic Efficiency and Scale of Rice Production in Bogor District
BT  - Proceedings of the 2nd International Conference on Smart and Innovative Agriculture (ICoSIA 2021)
PB  - Atlantis Press
SP  - 266
EP  - 269
SN  - 2468-5747
UR  - https://doi.org/10.2991/absr.k.220305.040
DO  - 10.2991/absr.k.220305.040
ID  - Arifien2022
ER  -