The Production Efficiency of Potato Farming in Batur Village Using the Stochastic Frontier Analysis Approach

Abstract

This study aims to analyze the production efficiency of potato farming in Batur Village using the Stochastic Frontier Analysis (SFA) approach. The sampling of this study uses a random sampling method of 97 farmers. The research variables are land area (X1), seeds (X2), fertilizer (X3), pesticides (X4), labor (X5), and the dependent variable of potato production (Y). To analyze Cob-Douglas efficiency, the SFA method is used to measure technical efficiency, price efficiency, and economic efficiency of potato farming production units. The result of research on potato agricultural production in Batur Village is not technically efficient with a value of 0.999 < 1. In terms of price, it is also not efficient with a value of 1.79 > 1. Thus, from these two efficiencies cause economic efficiency is not achieved, namely with a value of 1.788 > 1. To overcome the inefficiency of potato farming production, the farmers must have the will to continue to develop by adding insight and knowledge such as participating in farmer counseling with related institutions in order to be able to solve production problems independently. The government can also help overcome farmers' problems by subsidizing fertilizers, seeds, and pesticides which can reduce the cost of agricultural production. With both efforts from both farmers and the government, it is certainly expected that agricultural production problems will be achieved in order to achieve production efficiency and can improve the welfare of potato farmers in Batur Village.