EFFICIENCY ANALYSIS OF LOWLAND RICE FARMING USING A STOCHASTIC FRONTIER PRODUCTION FUNCTION APPROACH (CASE STUDY AT DESA GOLO SEPANG, KECAMATAN BOLENG, KABUPATEN

Abstract

This study aims to analyze the factors influencing lowland rice production as well as the technical and economic efficiency of lowland rice farming in Golo Sepang Village, Boleng District, West Manggarai Regency. The research location was selected purposively (purposive sampling), and data were collected using a survey method. The analysis employed the Cobb–Douglas frontier production function and the stochastic frontier approach. The results show that seed, pesticides, and labor have positive and significant effects on lowland rice production, while fertilizer has a negative and insignificant effect. Age, farming experience, and household size significantly reduce technical inefficiency, whereas other sources of income increase technical inefficiency. Farmer group membership does not have a significant effect on technical inefficiency. The average technical efficiency is 0.664, allocative efficiency is 0.065, and economic efficiency is 0.040, indicating that lowland rice farming has not yet achieved economic efficiency.