Evaluation of technical efficiency traditional agriculture among smallholder maize farmers in East Java

Program study of Agribusiness, Faculty of Agriculture, Trunojoyo Madura University, Bangkalan, Indonesia
Program study Master of Agriculture Economics, Faculty of Agriculture, Brawijaya University, Malang, Indonesia
Program study Master of Science Agribusiness, Faculty of Economic and Management, IPB University, Bogor, Indonesia

^* Corresponding author: mardiyah@trunojoyo.ac.id

Abstract

The low productivity of maize in traditional agriculture has worsened the demand and supply of maize production. This gap indicates the important role of the small farmer sector in producing maize. However, this also indicates that there will be serious consequences for food security in Indonesia if maize farmers experience crop failure. Because of these conditions, this article will analyze the technical efficiency of traditional maize farming using a randomly selected sample of 70 farmers. This research uses a stochastic frontier model of technical efficiency analysis through a linearized Cobb-Douglas production function to determine the input production elasticity coefficient, technical efficiency, and the determining factors of technical efficiency. This study found that maize production responded positively to increasing the amount of seed, urea fertilizer, and NPK fertilizer. Efficiency analysis shows that traditional farming activities for smallholder maize farmers are classified as technically efficient with a Technical Efficiency value of 0.821, which means farmers can combine inputs to produce optimal output. The results of this research empirically prove that small-scale agriculture in maize farming activities has a better level of technical efficiency. The results of this research also highlight the role of farmer groups in improving technical efficiency through better agricultural extension services and other access.