Research Paper
Year: 2020 | Month: January | Volume: 7 | Issue: 1 | Pages: 465-473
Analysis of Rice Production Factor Efficiency in Langkat Regency North Sumatra Province
Faisal Azhari Baldan Panjaitan1, Tavi Supriana2, Rahmanta2
1Postgraduate Students Department of Agribusiness, Faculty of Agriculture at University of North Sumatera, Indonesia
2Postgraduate Lecturer Department of Agribusiness , Faculty of Agriculture at University of North Sumatera, Indonesia
Corresponding Author: Faisal Azhari Baldan Panjaitan
ABSTRACT
This study aims to analyze the opportunities to increase rice production in Langkat District through the efficiency of farming production factors. The purpose of this study was to analyze the efficiency of production factors on the production of lowland rice farming in Langkat Regency, North Sumatra Province. Data analysis methods used are Ordinary Least Square (OLS) and Stochastic Frontier Maximum Likelihood Estimation (MLE) Linear Regression with SPSS 24, Eviews 8, and Frontier 4.1 software tools. The results showed that land area variables had a negative and insignificant effect and the use of seeds had a positive and not significant effect on production. Meanwhile the variables of the use of seeds, fertilizers, liquid pesticides, labor in the family and out-of-family labor have a positive and significant effect on the production of wetland rice in the Langkat Regency of North Sumatra Province. The results also showed that wetland rice farming in Langkat District of North Sumatra Province was technically quite efficient with mean efficiency (0.82).
Keywords: Farming, Lowland Rice, Technical Efficiency, Stochastic Frontier
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