Review Paper
Year: 2022 | Month: April | Volume: 9 | Issue: 4 | Pages: 426-434
DOI: https://doi.org/10.52403/ijrr.20220453
Analysis of Corn Supply in North Sumatra Province
Miyarnis1, Rulianda P. Wibowo2, Rahmanta2
1,2Master of Agribusiness Study Program on Faculty of Agriculture of University of Sumatera Utara.
Corresponding Author: Miyarnis
ABSTRACT
Knowledge of the magnitude of the influence of factors that affect supply can be used to estimate the amount of corn supply. Corn in North Sumatra Province also has an important role for the government, corn producers, and corn consumers. The availability of planting land, production and prices of corn that always change every year, this will affect the supply of corn in North Sumatra Province. The purpose of this study was to analyze the effect of maize prices in year t, maize prices in the previous year, maize harvested area, and urea fertilizer prices on maize supply in North Sumatra Province and analyze the short-term and long-term supply elasticity of maize in North Sumatra Province. The research method used is distributed lagmodel analysis. The results of this study are the price of corn the previous year (Pjt-1) with a probability value of 0.0143 and the area of harvest (Lpj) with a probability value of 0.0130 have asignificant effect on corn supply in North Sumatra Province (Sjt). While the price of corn in year t (Pjt) with a probability value of 0.8511 and the price of urea fertilizer (Hpu) with a probability value of0.2764 did not significantly affect the supply of corn in North Sumatra Province. The short-term elasticity is 0.050244 < 1, which means that every 1% change in the price of corn will increase the supply of corn by 0.05% and in the long run0.706585 <1, which means that every 1% change in the price of corn will increase the supply of corn by 0.71% is inelastic to the supply of corn in North Sumatra Province.
Keywords: Elasticity, Corn and Supply.
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