The Efficiency of Red Chili Farming In Merapi Eruption Area, Yogyakarta, Indonesia

Department of Agribusiness, Universitas Muhammadiyah Yogyakarta, Jl. Brawijaya, Geblagan, Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta 55183, Indonesia

^* Corresponding author: lestari@umy.ac.id

Abstract

Changes in soil texture after the Merapi eruption in 2010 does not affect farmers in using the production factors, resulting in non-optimal production. This study aims to analyze the factors affecting red chili production and the level of technical, allocative, and economic efficiency of red chili farming in the Merapi eruption area, Sleman Regency Yogyakarta. This study utilized a quantitative method. A total of 80 farmers was selected as samples by using a simple random sampling method. Data were analysed using the Cobb-Douglas Stochastic Frontier production model. The input side approach analysed the allocative and economic efficiency. The results showed that only land area and manure factors that significantly affected the production of red chili. The average of farmers had reached technical efficiency level with an index of 0.826 and allocative efficiency level with an index of 0.804. However, they had not achieved economic efficiency because the efficiency level merely reached the 0.665 indexes. Meanwhile, four internal factors of farmers, namely age, education level, farming experience, and land ownership status, had an insignificant influence on technical inefficiencies.