Economic Analysis of Agricultural Credit on Production Efficiency of Borrower Farms

Credit is one of the most crucial but scarce inputs used in agriculture. Farm credit is an important instrument, which has been used to increase agricultural productivity. The main focus of this research is to examine the role of agricultural credits, production and efficiency of farms in Erode District of Tamil Nadu. Kavunthapadi and Modakurichi block of Erode district was selected. A complete enumeration of farm households which borrowed institutional crop loan in each of the sample villages was made. The survey was conducted among 60 borrowers and 45 non-borrowers farm households. In the present study, the efficiency of farms among borrower and non-borrower sample households was determined by the Stochastic Frontier production function of the Cobb- Douglas type had been used. And Tobit analysis was also done to know the effect of credit on farm efficiency. The efficiency scores obtained from first stage Stochastic Frontier Approach for borrower and non-borrower farms were used as dependent variable and a dummy variable to represent credit (X5i) were used as one of the independent variables in addition to other socio economic independent variables. Results of the model revealed that the number of borrower farms with a technical efficiency of more than 90 per cent were more (57 per cent of the total borrower farms) than that of non- borrower farms (33.3 per cent) which implies that the more percentage of farmers availed credit and adopted technology had higher technical efficiency level (90 per cent). The results also indicated that technical efficiency ranged from 0.41 to 0.99 for non borrowers and from 0.62 to 0.98 for borrowers. The results of Tobit regression analysis indicated that net operational area, farm experience, access to farm credit, had positive and significant relationship with the technical efficiency of the farmer.

Effisiensi Produksi Industri Skala Kecil Batik Semarang: Pendekatan Fungsi Produksi Frontier Stokastik

Jurnal Manajemen Teori dan Terapan | Journal of Theory and Applied Management ◽

10.20473/jmtt.v4i1.2410 ◽

2011 ◽

Vol 4 (1) ◽

Author(s):

Ngatindriatun Ngatindriatun ◽

Hertiana Ikasari

Keyword(s):

Technical Efficiency ◽

Production Efficiency ◽

Stochastic Frontier ◽

Free Variable ◽

High Price ◽

Small Scale ◽

Central Java ◽

Analysis Instrument ◽

Batik is known since 17th century. In 2009, UNESCO took batik as the world heritage. Likewise, Batik Semarang. Batik Semarang is unpopular than other batik’s products on Central Java. Their productivity is on small scale and only for environment surroundings. The small productivity causes the high price on their product selling. The aims of this research are to estimate the function of production and technical efficiency of batik Semarang. Sample is 67 owners of small scale batik Semarang industry. Analysis instrument is Stochastic Frontier Production Function. The measuring of production efficiency are material, support material, labor force, instruments, kerosene, firewood, and large of trade location. The result shows that free variable is found significant and have an appropriate signal. Other result shows that technical efficiency of batik Semarang industry is 88, 9%

Determinants and Differences of Grain Production Efficiency Between Main and Non-Main Producing Area in China

Sustainability ◽

10.3390/su11195225 ◽

2019 ◽

Vol 11 (19) ◽

pp. 5225

Author(s):

Furong Chen ◽

Yifu Zhao

Keyword(s):

Panel Data ◽

Technical Efficiency ◽

Production Function ◽

Production Efficiency ◽

Stochastic Frontier ◽

Grain Production ◽

Marginal Productivity ◽

Rural Labor ◽

This paper investigated the determinants, especially labor transformation, and differences of technical efficiency between main and non-main grain-producing area in China based on a panel data from 30 provinces in the period of 2001–2017. Stochastic frontier production function was used to estimate the level of technical efficiency and the marginal productivity of different inputs. The estimated results showed that land is the most important factor to improve China’s grain output, followed by fertilizers, labor, and machinery inputs. There was a significant 4.6 percent gap of production efficiency between main and non-main producing provinces. Influence of rural labor transformation was confirmed to be positive to improve technical efficiency.

Analisis Efisiensi Usahatani Padi di Kabupaten Lampung Tengah

Jurnal Agribisnis Indonesia ◽

10.29244/jai.2014.2.2.127-140 ◽

2017 ◽

Vol 2 (2) ◽

pp. 127

Author(s):

Budi Yoko ◽

Yusman Syaukat ◽

Anna Fariyanti

Keyword(s):

Technical Efficiency ◽

Economic Efficiency ◽

Production Efficiency ◽

Stochastic Frontier ◽

Allocative Efficiency ◽

Agricultural Extension ◽

Rice Production ◽

Rice Farming ◽

<p>An effort to increase rice production through agricultural extension in Central Lampung regency is difficult. This is because of the limited land that can be used as new planning areas and high competition for land use as non-agricultural activities. Therefore, the increase in rice production through production efficiency becomes the most important alternative. The objectives of this study are to analyze the level of technical efficiency, allocative efficiency, and economic efficiency of rice farming in Central Lampung district and identified the factors that influence it. The results of the analysis using stochastic frontier production function shows that rice farming in the study area has been efficient. Average efficiency level of technical efficiency is 0,94, allocative efficiency is 0,93, and economic efficiency is 0,88. The land area is the most responsive variable in an effort to increase rice production. Variables expected to affect the degree of technical efficiency of rice farming is the number of family members of farmers, rice farming experience, acces farmers to agricultural financing, and number of agricultural extension.</p>

Technical efficiency of cocoa farming in Gorontalo Province

E3S Web of Conferences ◽

10.1051/e3sconf/202123201027 ◽

2021 ◽

Vol 232 ◽

pp. 01027

Author(s):

Ari Abdul Rouf ◽

Erna Retnawati ◽

Dwi Rohmadi ◽

Soimah Munawaroh ◽

Awaludin Hipi

Keyword(s):

Technical Efficiency ◽

Production Efficiency ◽

Stochastic Frontier ◽

Simple Random Sampling ◽

Significant Rise ◽

Factors Affecting ◽

Cocoa Production ◽

Negative Effect ◽

Technical Production ◽

Cocoa is an export oriented strategic plantation commodity that contributes to foreign exchange in Indonesia. It is mostly planted in Sulawesi Island, therefore, serves as a source of income for farmers. The purpose of this study was to analyze the efficiency of cocoa farming in Pohuwato Regency, Gorontalo. A total of 55 respondents were selected by simple random sampling. Furthermore, the Cobb Douglas stochastic frontier production function was used to analyze technical production efficiency and factors affecting it. Cocoa farming can be categorized as profitable, as the farmer reached average profit IDR 6,312,679/ha/year. However, in general cocoa farmers have not yet technically efficient because their technical efficiency value was only 0.52. The cocoa production efficiency was positively and significantly affected by land area, fertilizer, pesticides and labor. The increase in farmer age causes a positive and significant rise in inefficiency. Conversely, education and the number of family members have a negative effect, although not significant. Therefore, it requires to increase cocoa farming efficiency by increasing farmers’ access to production inputs such as fertilizers and pesticides, and improving the management of cocoa cultivation.

Technical Efficiency of Small Scale Farmers: An Application of the Stochastic Frontier Production Function on Fish Farmers in Ibadan Metropolis

SSRN Electronic Journal ◽

10.2139/ssrn.1819042 ◽

2008 ◽

Author(s):

Osayanmon Wellington Osawe ◽

A. J. Adeqeye ◽

Bolarin T. Omonona

Keyword(s):

Technical Efficiency ◽

Production Function ◽

Stochastic Frontier ◽

Small Scale ◽

Small Scale Farmers ◽

Investigation of Factors Influencing the Technical Efficiency of Agricultural Producers Participating in Farm Credit Programs: The Case of Greece

Journal of Agricultural and Applied Economics ◽

10.1017/s1074070800028261 ◽

2003 ◽

Vol 35 (3) ◽

pp. 529-541 ◽

Cited By ~ 20

Author(s):

Anthony N. Rezitis ◽

Kostas Tsiboukas ◽

Stauros Tsoukalas

Keyword(s):

Technical Efficiency ◽

Family Income ◽

Stochastic Frontier ◽

Agricultural Producers ◽

Credit Program ◽

Factors Influencing ◽

Efficiency Measures ◽

Farm Credit ◽

Negative Effect ◽

Hired Labor

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.

ESTIMASI FUNGSI PRODUKSI DAN EFISIENSI ALOKASI SUMBERDAYA PETANI KEDELAI DI LOMBOK BARAT

Jurnal AGRISEP Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis ◽

10.31186/jagrisep.3.1.145-148 ◽

2006 ◽

Vol 3 (1) ◽

pp. 145-148 ◽

Cited By ~ 1

Author(s):

Nurhayatin Nufus

Keyword(s):

Technical Efficiency ◽

Production Function ◽

Stochastic Frontier ◽

Allocative Efficiency ◽

Farm Management ◽

Management Level ◽

Stochastic Production ◽

Frontier Production Function ◽

Land Size

This research aims to analyses factors influence on production and resources allocation of soybeans by farmer at West Lombok. Production function was estimated from survey data and technical efficiency was used to indicate farm management level through maximum likelihood, which was transformed into frontier stochastic production function. The land size, fertilizer (urea and TSP), labor and pesticide influence the production of soybean at site. The technical efficciency level of Soybean fann was 95,6 percent The usage of TSP and pesticide reached allocative efficiency while urea and seeds were al/ocative efficiency yet Key words: technical effICiency, allocative effICiency, and stochastic frontier production function.

Technical Efficiency of Gambir Farming in Lima Puluh Kota Regency, West Sumatra, Indonesia

International Journal of Agricultural Sciences ◽

10.25077/ijasc.4.1.18-25.2020 ◽

2021 ◽

Vol 4 (1) ◽

pp. 18

Author(s):

Fauziah Fauziah ◽

Hasnah Hasnah ◽

Rusda Khairati

Keyword(s):

Technical Efficiency ◽

Negative Impact ◽

Stochastic Frontier ◽

Plant Age ◽

System Technology ◽

Factors Affecting ◽

West Sumatra ◽

Npk Fertilizer ◽

Older Farmers ◽

This study analyzes the factors influencing gambier productivity, analyzes the technical efficiency of gambier farming, and analyzes the factors affecting gambier farming's technical efficiency. This research was conducted in Lima Puluh Kota Regency, a gambier production center in West Sumatra. Data were analyzed using the Cobb Douglas stochastic frontier production function. The results showed that the factors that significantly influenced gambier's productivity were labor, NPK fertilizer, plant age, number of trees, varieties, and technology. The number of labor, fertilizer factor, plant age, number of trees, and seedling varieties had a positive effect on gambier productivity. In contrast, NPK fertilizer and technology had a negative impact on gambier productivity. The technical efficiency level of gambier farming started from 0.25 to 0.99 with an average level of 0.76. It means that farmers are technically efficient but can still increase gambier productivity if they use production inputs appropriately and adequately. Factors that significantly influence technical efficiency are age, farming experience, and technology. Older farmers will have a higher level of technical efficiency compared to young age. The lower the farming experience, the more technically efficient the farmer is. Farmers who use the hydraulic jack system technology are more efficient than farmers who use the jack system technology

PENGUATAN KINERJA BUDIDAYA TAMBAK DALAM RANGKA PENCAPAIAN KETAHANAN PANGAN

Jurnal Ekonomi Pembangunan Kajian Masalah Ekonomi dan Pembangunan ◽

10.23917/jep.v11i2.325 ◽

2015 ◽

Vol 11 (2) ◽

pp. 202

Author(s):

Eko Joko Lelono ◽

Indah Susilowati

Keyword(s):

Food Insecurity ◽

Production Efficiency ◽

Function Analysis ◽

Stochastic Frontier ◽

Cost Benefit ◽

Cost Benefit Ratio ◽

Study Sites ◽

Frontier Production Function ◽

Brackishwater Pond

This research on production efficiency and availability of brackishwater pond pro- duction in Parigi Moutong whether in a state of food insecurity or not. This study used a stochastic frontier production function analysis and cost benefit ratio. As a result, production of aquaculture ponds in the study sites were technically not effective, but feasible to proceed. Cultivation was not efficient because of the positive and significant influence of production inputs of land, seed, and labor. Production inputs such as fertilizer, feed, experience, lime, technology, fisheries counsellor were not significant The availability of pond products produced by processes that have not been efficient and food insecurity due to consumption of fish per capita per year is greater than the amount of production. Strengthening the performance of the pond to achieve food security needs to intensification and diversification. Intensification of land from two crops to be harvested three times a year.

Efficacité Technique des Petits Producteurs du Maïs au Bénin

European Scientific Journal ESJ ◽

10.19044/esj.2018.v14n19p109 ◽

2018 ◽

Vol 14 (19) ◽

pp. 109

Author(s):

Fawaz A. Adéchinan Aminou

Keyword(s):

Technical Efficiency ◽

Stochastic Frontier ◽

Farm Households ◽

Farm Income ◽

Selling Price ◽

Stochastic Frontier Approach ◽

Access To Credit ◽

Seed Distribution ◽

Production Area ◽

Low Efficiency

This study examines how small maize farmers allocate their production inputs and identifies the elements that characterize efficient farms. A Cobb Douglas stochastic frontier approach is used to estimate farm level technical efficiency of maize farmers. Average technical efficiency of sampled farms was estimated to be 65.40% with a minimum of 20.47% and a maximum of 93.46%. The study further showed that the farmers’ sex, the use of improved seeds, the maize selling price, the non-farm income, the contact with an NGO, the access to credit and the production area played a positive and significant role in improving technical efficiency. The results imply that government can save resources used in extension services and focus on its improved seed distribution policy. Also, imperfections in the labor/capital market contribute to the low efficiency of farm households.