scholarly journals Analysis of the Factors Influencing the Technical Efficiency among Oil Palm Smallholder Farmers in Indonesia

2015 ◽  
Vol 28 ◽  
pp. 630-638 ◽  
Author(s):  
Widya Alwarritzi ◽  
Teruaki Nanseki ◽  
Yosuke Chomei
Agro Ekonomi ◽  
2019 ◽  
Vol 29 (2) ◽  
pp. 196
Author(s):  
Armina Fariani ◽  
Jamhari Jamhari ◽  
Any Suryantini

This study aims to (1) identify the factors affecting the production of oil palm cultivation business by the smallholders and (2) identify the technical level as well as factors influencing business inefficiency of oil palm cultivation by the smallholders  in Air Sugihan Sub District of Ogan Komering Ilir Regency, South Sumatera Province.  This research uses the  basic method of analytical descriptive method.  The data were collected by way of observation and direct interviews in the field guided by a questionnaire.  The research location was determined purposively, that is in Pangkalan Damai Village, Air Sugihan Sub-district, Ogan Komering Ilir Municipality, South Sumatera Province. Sampling was conducted using non probabilistic sampling method (purposive sampling).  The research investigated 79 smallholder farmers of oil palm cultivation in Pangkalan Damai village of Air Sugihan Sub-district, Ogan Komering Ilir Municipality, South Sumatera Province.  On the basis of the analysis, it is revealed  that (1) the factors affecting the increase of palm production were labor, land area, TSP fertilizer, NPK fertilizer, organic fertilizer, herbicides and insecticides which also have an effect on decreasing  palm production. (2) Palm plantation business was technically efficient with the average technical level of smallholder palm farmers in Air Sugihan Sub-district of Ogan Komering Ilir Municipality of 0.86090.  Factors that decrease the technical inefficiency in smallholder palm cultivation in Air Sugihan Sub-district of Ogan Komering Ilir Regency were farmers’ education level.  This information can be used by the goverment to improve technical efficiency through education in the form of counseling and training to increase production.


Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.


2021 ◽  
Vol 13 (8) ◽  
pp. 4235
Author(s):  
Silvia Saravia-Matus ◽  
T. S. Amjath-Babu ◽  
Sreejith Aravindakshan ◽  
Stefan Sieber ◽  
Jimmy A. Saravia ◽  
...  

By developing meta-frontier efficiency and structural equation models, the paper examines whether farm economic viability is positively associated with technical efficiency in a highly food insecure context, such as that of rural Sierra Leone. The findings show that technical efficiency can be a sufficient but not necessary condition in determining economic viability of smallholder farming. It is possible to breach reproductive thresholds at the cost of reduced technical efficiency, when the crop diversification strategy of smallholders includes market-oriented high-value crops. This calls for a dual policy approach that addresses farmers’ internal needs for self-consumption (increasing efficiency of food crop production) while encouraging market-oriented cash crop production (diversification assisted through the reduction of associated transaction costs and the establishment of accessible commercialization channels of export related crops and/or high-value crops). The work also calls out for a move-up or move-out strategy for small holders to create viable farming systems in developing world.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samuel Ahado ◽  
Jiří Hejkrlík ◽  
Anudari Enkhtur ◽  
Tserendavaa Tseren ◽  
Tomáš Ratinger

PurposeThe purpose of this paper is to examine the impact of agricultural cooperative membership on potato production and technical efficiency.Design/methodology/approachA combination of propensity score matching technique and sample selection stochastic frontier framework that addresses potential selection bias due to observable and unobservable attributes is used to estimate the effect of participation between cooperative members and non-members. Using a stochastic meta-frontier approach, the technical efficiency of farmers was estimated and compared.FindingsThe empirical results show that the effect of participation in agricultural cooperatives is associated with increased yield and technical efficiency. A comparison of group-specific frontiers indicates that cooperative members perform better than non-members. Cooperative membership decisions is significantly associated with household and farm characteristics (e.g. education, participation in off-farm work, total farmland, distance to market and geographic location).Practical implicationsThe findings of this study demonstrate that cooperative organisations can be an important tool to enhance the productivity and efficiency of smallholder farmers. Successful cooperative models together with training programs designed to enlighten farmers on the importance and tangible benefits of collective action should be used to enlarge participation in cooperative organisations. In addition, governments and development agencies should implement targeted investment and capacity building programs related to irrigation management, gender-sensitive awareness and development of the internal institutional mechanisms in cooperatives for the transfer of knowledge and mutual learning so that all members benefit from cooperatives.Originality/valueDespite the pervasive evidence of the impact of cooperatives on productivity and technical efficiency in the Asian region, this study is probably the first attempt in the crop sector in Mongolia. It provides a rigorous empirical analysis of the impact of agricultural cooperative membership on potato production and technical efficiency through a counterfactual design.


2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.


2013 ◽  
Vol 824 ◽  
pp. 561-567 ◽  
Author(s):  
U.J. Udosen ◽  
A.P. Ugboya

This study analyzes oil palm production from 2001 - 2008 in Edo State, with a view of establishing the future of Nigerian Agricultural oil palm industries. The specific objectives were to identify and quantify the factors influencing the production of oil palm, reveal the constraints to the production of oil palm; analyze the viability of oil palm production as an investment and predict the future of oil palm enterprise in Edo State. Three Local Government Areas of high oil palm concentration in Edo State were covered. Ninety selected oil palm producers from nine villages in the study area were selected. Frequency distributions and multiple regression analysis were used to analyze the results. The results showed that for the period under review (2001 - 2008) on a per hectare basis, seedlings cost, and labour cost were significant inputs, positively influencing the production of oil palm in the Edo State. A growth rate of 6.2% and 23.5% were projected for oil palm with reference to palm oil and fresh fruit bunches (FFB), respectively, up to the year 2020, an indication that oil palm production in the State is viable and the future is bright. The study revealed that inadequate storage facilities, poor planting materials and lack of government assistance, among others, are major bottlenecks in oil palm production in Edo State. However, since oil palm production in Edo State is viable, it is an indication that the future of Nigerian Agricultural Industries is bright.


2003 ◽  
Vol 35 (3) ◽  
pp. 529-541 ◽  
Author(s):  
Anthony N. Rezitis ◽  
Kostas Tsiboukas ◽  
Stauros Tsoukalas

This study investigates a number of factors influencing technical efficiency of Greek farms participating in the 1994 European Union (EU) farm credit program. Technical efficiency measures are obtained within the framework of a parametric stochastic frontier. Factors showing a positive effect on technical efficiency are value of liabilities, number of hours of mechanical operation, large land size, and rental land, whereas those showing a negative effect are value of EU product subsidies, value of off-farm family income, and hired labor. The value of investments incurred by farms because of their participation in the 1994 farm credit program does not show any significant effect on technical efficiency. The predicted levels of technical efficiency indicate that the average technical efficiency of farms 3 years after participating in the 1994 farm credit program is lower than the average technical efficiency of the same farms the year before participating in the program. Thus, the program has failed to increase the efficiency of farms.


2020 ◽  
Vol 12 (8) ◽  
pp. 55
Author(s):  
Ei Thazin Soe ◽  
Yoshifumi Takahashi ◽  
Mitsuyasu Yabe

This study determined the factors influencing the adoption of improved soybean varieties and examined the technical efficiencies of improved and local soybean varieties production in Southern Shan State, Myanmar. For this study, data from a sample of 337 respondents were collected by employing a multi-stage random sampling method. Logit model was adopted to determine the factors influencing the adoption of improved soybean varieties. Additionally, a stochastic production frontier was used to examine technical efficiencies of improved and local soybean varieties. Results show that factors that positively and significantly influence the adoption of improved soybean varieties are education, market access, extension access and training access. Examination of technical efficiency reveals that labor, fertilizer, machinery, and use of pesticide and harvester are inputs that significantly contribute to improving production efficiency among the improved variety farmers while seeds, labor, and fertilizer are significant inputs of local soybean production. On average, the estimated yield of the improved soybean varieties is 1.51 t/ha, which is higher than the yield of local soybean varieties grown at 0.88 t/ha. It was also revealed that improved soybean varieties had a relatively higher level of mean technical efficiency (85.04%) than local varieties (70.13%) and significantly different at 1% level. The results show that improved soybean production is more efficient than local soybean production. Therefore, government and non-government organizations should improve and provide market access, efficient and effective extension services and training to encourage farmers to adopt improved soybean varieties.


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