Technical Efficiency of Irrigated and Rain-fed Rice Farms in North Sumatra, Indonesia
DOI:
https://doi.org/10.59653/ijmars.v1i03.233Keywords:
Irrigation, Rice, DEA, Technical Eficiency, North SumatraAbstract
The present paper compares the efficiency of irrigated and rain-fed farming in North Sumatra using a household farm survey for the 2022 growing season. The authors use the Data Envelopment Analysis (DEA) model, mean difference test, and Tobit regression. Empirical results reveal that irrigated farming is more efficient than rain-fed based on CRS and SE assumptions. However, access to irrigation was found to harm rice farming efficiency. Unequal distribution of water, scarcity of water during the growth period, and excess water during the harvest cause a decrease in the efficiency of irrigated farming. The age of the head of household, education, and access to credit was also found to harm technical efficiency. In contrast, the experience variable in participating in farmer groups because it has a positive impact on the efficiency of rice farming. The results provide valuable insights for transforming water management and strengthening the need for investment in irrigation infrastructure as a poverty alleviation mechanism and means to achieve rice farming sustainability in North Sumatra.
Downloads
References
Agarwal, S., Yadav, S. P., & Singh, S. P. (2010). DEA based estimation of the technical efficiency of state transport undertakings in India. OPSEARCH, 47(3), 216–230. https://doi.org/10.1007/S12597-011-0035-4/TABLES/6
Alem, H., Lien, G., & Hardaker, J. B. (2018). Economic performance and efficiency determinants of crop-producing farms in Norway. International Journal of Productivity and Performance Management, 67(9), 1418–1434. https://doi.org/10.1108/IJPPM-01-2018-0026/FULL/PDF
Al-Hassan, S. (2008). Technical Efficiency of Rice Farmers in Northern Ghana (178; AERC Research Paper). https://africaportal.org/publication/technical-efficiency-of-rice-farmers-in-northern-ghana/
Amalia, A. P. (2020). Availability of Irrigation Water On Rice Crops in Sungga Kanan Village, Sunggal District, Deli Serdang Regency. Universitas Negeri Medan.
Anang, B. T., Alhassan, H., & Danso-Abbeam, G. (2020). Estimating technology adoption and technical efficiency in smallholder maize production: A double bootstrap DEA approach. Cogent Food & Agriculture, 6(1), 1833421. https://doi.org/10.1080/23311932.2020.1833421
Anang, B. T., Bäckman, S., & Rezitis, A. (2017). Production technology and technical efficiency: irrigated and rain-fed rice farms in northern Ghana. Eurasian Economic Review, 7(1), 95–113. https://doi.org/10.1007/S40822-016-0060-Y/METRICS
Anang, B. T., Bäckman, S., & Sipiläinen, T. (2016). Agricultural microcredit and technical efficiency: The case of smallholder rice farmers in Northern Ghana. Journal of Agriculture and Rural Development in the Tropics and Subtropics (JARTS), 117(2), 189–202. https://www.jarts.info/index.php/jarts/article/view/2016061350415
Antriyandarti, E. (2015). Competitiveness and Cost Efficiency of Rice Farming in Indonesia. Journal of Rural Problems, 51(2), 74–85. https://doi.org/10.7310/ARFE.51.74
Arouna, A., & Dabbert, S. (2010). Determinants of domestic water use by rural households without access to private improved water sources in Benin: A Seemingly Unrelated Tobit Approach. Water Resources Management, 24(7), 1381–1398. https://doi.org/10.1007/S11269-009-9504-4/METRICS
Biswas, B., Mallick, B., Roy, A., & Sultana, Z. (2021). Impact of agriculture extension services on technical efficiency of rural paddy farmers in southwest Bangladesh. Environmental Challenges, 5, 100261. https://doi.org/10.1016/J.ENVC.2021.100261
BPS. (2021). Statistik Indonesia.
BPS-Statistics. (2018). Results of Inter-Censal Agriculture Survey A2 Series.
Coelli, T. J., Prasada Rao, D. S., O’Donnell, C. J., & Battese, G. E. (2005). An Introduction to Efficiency and Productivity Analysis, 349 pp. https://doi.org/10.1007/B136381/COVER
Dalei, N. N., & Joshi, J. M. (2020). Estimating technical efficiency of petroleum refineries using DEA and tobit model: An India perspective. Computers & Chemical Engineering, 142, 107047. https://doi.org/10.1016/J.COMPCHEMENG.2020.107047
Dar, M. H., Waza, S. A., Shukla, S., Zaidi, N. W., Nayak, S., Hossain, M., Kumar, A., Ismail, A. M., & Singh, U. S. (2020). Drought Tolerant Rice for Ensuring Food Security in Eastern India. Sustainability 2020, Vol. 12, Page 2214, 12(6), 2214. https://doi.org/10.3390/SU12062214
Dillon, A. (2008). Access to Irrigation and the Escape from Poverty: Evidence from Northern Mali (00782; IFPRI Discussion Paper).
Farrell, M. J. (1957). The Measurement of Productive Efficiency. Journal of the Royal Statistical Society. Series A (General), 120(3), 290. https://doi.org/10.2307/2343100
FAS, & USDA. (2020). Indonesia: Grain and Feed Annual.
Gedara, K. M., Wilson, C., Pascoe, S., & Robinson, T. (2012). Factors Affecting Technical Efficiency of Rice Farmers in Village Reservoir Irrigation Systems of Sri Lanka. Journal of Agricultural Economics, 63(3), 627–638. https://doi.org/10.1111/J.1477-9552.2012.00343.X
Hakim, R., Haryanto, T., & Sari, D. W. (2021). Technical efficiency among agricultural households and determinants of food security in East Java, Indonesia. Scientific Reports, 11(1), 1–9. https://doi.org/10.1038/s41598-021-83670-7
Haryanto, T., Talib, B. A., & Salleh, N. H. M. (2015). An Analysis of Technical Efficiency Variation in Indonesian Rice Farming. Journal of Agricultural Science, 7(9). https://doi.org/10.5539/JAS.V7N9P144
Haryanto, T., Talib, B. A., & Salleh, N. H. M. (2016). Technical efficiency and technology gap in Indonesian rice farming. Agris On-Line Papers in Economics and Informatics, 8(3), 29–38. https://doi.org/10.7160/aol.2016.080303
Heriqbaldi, U., Purwono, R., Haryanto, T., & Primanthi, M. R. (2015). An analysis of technical efficiency of rice production in Indonesia. Asian Social Science, 11(3), 91–102. https://doi.org/10.5539/ASS.V11N3P91
Junaedi, M., Kuswanti Suwarsinah Daryanto, H., Marulitua Sinaga, B., & Hartoyo, S. (2016). Technical Efficiency and The Technology Gap in Wetland Rice Farming in Indonesia: A Metafrontier Analysis. International Journal of Food and Agricultural Economics, 4(2), 39–50. https://doi.org/10.22004/ag.econ.234909
Kalirajan, K. P., Obwona, M. B., & Zhao, S. (1996). A decomposition of total factor productivity growth: the case of Chinese agricultural growth before and after reforms. American Journal of Agricultural Economics, 78(2), 331–338. https://doi.org/10.2307/1243706
Kenny, G. P., Yardley, J. E., Martineau, L., & Jay, O. (2008). Physical work capacity in older adults: Implications for the aging worker. American Journal of Industrial Medicine, 51(8), 610–625. https://doi.org/10.1002/AJIM.20600
Khanal, A. R., & Regmi, M. (2018). Financial constraints and production efficiency: A case from rice growers in drought prone areas of Indonesia. Agricultural Finance Review, 78(1), 25–40. https://doi.org/10.1108/AFR-07-2016-0068/FULL/XML
Kinkingninhoun-Mêdagbé, F. M., Diagne, A., Simtowe, F., Agboh-Noameshie, A. R., & Adégbola, P. Y. (2010). Gender discrimination and its impact on income, productivity, and technical efficiency: Evidence from Benin. Agriculture and Human Values, 27(1), 57–69. https://doi.org/10.1007/S10460-008-9170-9/METRICS
Kumbhakar, S. C., Tsionas, E. G., & Sipiläinen, T. (2009). Joint estimation of technology choice and technical efficiency: An application to organic and conventional dairy farming. Journal of Productivity Analysis, 31(3), 151–161. https://doi.org/10.1007/S11123-008-0081-Y/TABLES/8
Kuwornu, J. K. M., & Owusu, E. S. (2012). Irrigation access and per capita consumption expenditure in farm households: Evidence from Ghana. Journal of Development and Agricultural Economics, 4(3), 78–92. https://doi.org/10.5897/JDAE11.105
Long, L. K., Thap, L. Van, & Hoai, N. T. (2020). An application of data envelopment analysis with the double bootstrapping technique to analyze cost and technical efficiency in aquaculture: Do credit constraints matter? Aquaculture, 525, 735290. https://doi.org/10.1016/J.AQUACULTURE.2020.735290
Makombe, G., Namara, R. E., Awulachew, S. B., Hagos, F., Ayana, M., & Kanjere, M. (2017). An analysis of the productivity and technical efficiency of smallholder irrigation in Ethiopia. Water SA, 43(1), 48–57. https://doi.org/10.4314/WSA.V43I1.08
Mkanthama, J., Makombe, G., Kihoro, J., Ateka, E. M., & Kanjere, M. (2018). Technical Efficiency of Rainfed and Irrigated Rice Production in Tanzania. Irrigation and Drainage, 67(2), 233–241. https://doi.org/10.1002/IRD.2185
Nababan, M. (2013). Irrigation Management of Rice Farming in Juhar Village, Bandar Khalipah District, Serdang Bedagai Regency [Universitas Negeri Medan]. http://digilib.unimed.ac.id/17753/8/ABSTRAK.pdf
Nandy, A., Singh, P. K., & Singh, A. K. (2019). Systematic Review and Meta- regression Analysis of Technical Efficiency of Agricultural Production Systems. Global Business Review, 22(2), 396–421. https://doi.org/10.1177/0972150918811719
Nguyen, T. T. T., Le, H. H., Ho, T. M. H., Dogot, T., Burny, P., Bui, T. N., & Lebailly, P. (2020). Efficiency Analysis of the Progress of Orange Farms in Tuyen Quang Province, Vietnam, towards Sustainable Development. Sustainability 2020, Vol. 12, Page 3170, 12(8), 3170. https://doi.org/10.3390/SU12083170
Ojo, T. O., & Baiyegunhi, L. J. S. (2020). Impact of climate change adaptation strategies on rice productivity in South-west, Nigeria: An endogeneity corrected stochastic frontier model. Science of The Total Environment, 745, 141151. https://doi.org/10.1016/J.SCITOTENV.2020.141151
Pede, V. O., Areal, F. J., Singbo, A., McKinley, J., & Kajisa, K. (2018). Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol, Philippines. Agricultural Economics, 49(3), 301–312. https://doi.org/10.1111/AGEC.12417
Perrigot, R., & Barros, C. P. (2008). Technical efficiency of French retailers. Journal of Retailing and Consumer Services, 15(4), 296–305. https://doi.org/10.1016/J.JRETCONSER.2007.06.003
Purwantini, T. B., & Suhaeti, R. N. (2017). IRIGASI KECIL: KINERJA, MASALAH, DAN SOLUSINYA Small Scale Irrigation: Performance, Problems, and Solutions. Forum Penelitian Agro Ekonomi, 35(2), 91–105. https://doi.org/10.21082/fae.v35n2.2017.91-105
Schultz, T. W. (1964). Transforming Traditional Agriculture. University of Chicago Press.
Seok, J. H., Moon, H., Kim, G. S., & Reed, M. R. (2018). Is Aging the Important Factor for Sustainable Agricultural Development in Korea? Evidence from the Relationship between Aging and Farm Technical Efficiency. Sustainability , 10(7). https://doi.org/10.3390/SU10072137
Septiadi, D., Harianto, & Suharno. (2016). DAMPAK KEBIJAKAN HARGA BERAS DAN LUAS AREAL IRIGASI TERHADAP PENGENTASAN KEMISKINAN DI INDONESIA. Jurnal Agribisnis Indonesia (Journal of Indonesian Agribusiness), 4(2), 91–106. https://doi.org/10.29244/JAI.2016.4.2.91-106
Sufian, F., & Kamarudin, F. (2014). Efficiency and returns to scale in the bangladesh banking sector: Empirical evidence from the slack-based DEA method. Engineering Economics, 25(5), 549–557. https://doi.org/10.5755/j01.ee.25.5.5035
Sumaryanto, S., Susilowati, S. H., Saptana, S., Sayaka, B., Suryani, E., Agustian, A., Ashari, A., Purba, H. J., Sumedi, S., Dermoredjo, S. K., Purwantini, T. B., Yofa, R. D., & Pasaribu, S. M. (2023). Technical efficiency changes of rice farming in the favorable irrigated areas of Indonesia. Open Agriculture, 8(1). https://doi.org/10.1515/OPAG-2022-0207/ASSET/GRAPHIC/J_OPAG-2022-0207_FIG_002.JPG
Tenaye, A. (2020). Technical Efficiency of Smallholder Agriculture in Developing Countries: The Case of Ethiopia. Economies 2020, Vol. 8, Page 34, 8(2), 34. https://doi.org/10.3390/ECONOMIES8020034
Thibbotuwawa, M., Mugera, A., & White, B. (2013). Production Efficiency and Technology Gap in Irrigated and Rain-fed Rice Farming Systems in Sri Lanka: Non Parametric Approach. The 57th AARES Annual Conference, February 5-8. https://doi.org/10.22004/ag.econ.152181
Ubabukoh, C. L., Katsushi, |, Imai, S., & Jindal, O. P. (2023). Are farmers ‘efficient but poor’? The impact of crop choices on technical efficiency and poverty in Nigeria. Journal of Agricultural Economics, 74(1), 191–213. https://doi.org/10.1111/1477-9552.12501
Wahyunto, & Widiastuti, F. (2017). Lahan Sawah Sebagai Pendukung Ketahanan Pangan serta Strategi Pencapaian Kemandirian Pangan. Jurnal Sumberdaya Lahan, 17–30. https://repository.pertanian.go.id/items/4eebd9f7-f5c3-46b3-a210-cea681dee9c7
Watto, M. A., & Mugera, A. W. (2014). Measuring Production and Irrigation Efficiencies of Rice Farms: Evidence from the Punjab Province, Pakistan. Asian Economic Journal, 28(3), 301–322. https://doi.org/10.1111/ASEJ.12038
Williams, R. (2012). Using the Margins Command to Estimate and Interpret Adjusted Predictions and Marginal Effects. The Stata Journal, 12(2), 308–331. https://doi.org/10.1177/1536867X1201200209
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2023 Jones Simatupang, Manaor Bismar Posman Nababan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
