International Business Management
ISSN: OnlineISSN: Print 1993-5250
Abstract
The study was aimed to analyze the level of productivity, technical efficiency, allocative efficiency and economic efficiency as well to identify factors affecting the productivity level of soybean farming in Indonesia. Random sampling by multi-stage method was performed to obtain cross-sectional data. Function model of stochastic production frontier and stochastic cost frontier through the MLE estimation method was adopted to analyze the research objectives. The results showed that there was over-use of fertilizer input thus the addition of fertilizer will only decrease the production and productivity of soybean farming. Moreover, an increase in production can be done through the increase in labor use, land price, labor price and production quantity which were significantly increased the production cost. Soybean farmers in research location have reached the level of actual productivity up to 90% of maximum productivity. However, socio-economic conditions of soybean farmers did not significantly affect the productivity achievement. This finding has an implicati on that increase in soybean production was no longer be achieved through the increase in land area and productivity but by improving the seed technology, since the comparison showed that soybean productivity per land area in research location was lower than that in Indonesia.
How to cite this article:
Bahari , Norma Arif, Doddy Ismunandar Bahari and M. Nur. Impact of Socio-Economics Condition of Farmer on Productivity Level of
Soybean Farming in Indonesia.
DOI: https://doi.org/10.36478/ibm.2017.1611.1619
URL: https://www.makhillpublications.co/view-article/1993-5250/ibm.2017.1611.1619