IJHAF | Technical Efficiency Analysis of Fertilizer use for Oil Palm Plantations Self-Help Patterns in Muaro Jambi Regency using Methods Data Envelopment Analysis

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Technical Efficiency Analysis of Fertilizer use for Oil Palm Plantations Self-Help Patterns in Muaro Jambi Regency using Methods Data Envelopment Analysis

Yusma Damayanti , Saidin Nainggolan , Dewi Sri Nurchaini , Silviana Eli Rahmawati

International Journal of Horticulture, Agriculture and Food science(IJHAF), Vol-7,Issue-1, January - February 2023, Pages 8-14, 10.22161/ijhaf.7.1.2

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Article Info: Received: 16 Jan 2023; Received in revised form: 15 Feb 2023; Accepted: 19 Feb 2023; Available online: 27 Feb 2023

Abstract:

This study aims to analyze the level of technical efficiency of fertilizer use, describe the distribution of technical efficiency based on the characteristics of farmers, and analyze the determinant factors that affect the use of fertilizers in smallholder oil palm plantations in Sekernan District, Muaro Jambi Regency. The type of research used is descriptive quantitative research. The analytical method used to calculate the efficiency value of farmers is using the Data Envelopment Analysis (DEA) method with the input approach of Variable Return to Scale assumptions. This research was conducted in two villages, namely Gerunggung Village and Bukit Baling Village in Sekernan District, Muaro Jambi Regency and carried out from June 2022 to July 2022. The results showed that based on DEA analysis there were 9 farmers who farmers.The distribution of farmers' were technically efficient and there were as many as 48 technically inefficient. Technical efficiency based on farmer characteristics is found in farmers who have a land area of 1.5 to 4.5 ha with a percentage of 90 percent, with an age range of 50 to 54 years with a percentage of 33.4 percent, have experience in farming for 9 to 14 years and 27 to 32 years with their respective percentages of 33.4 percent, and the length of education 6 to 8 years of 66.67 percent. Based on the tobit regression analysis, the factors (determinants) that affect the technical efficiency of oil palm farming, the variable FFB price, length of education and farmer's age have a significant value of more than 0.05 or no significant effect on the technical efficiency of fertilizer use. As for the variable price of fertilizer, farming experience, land area has a significance smaller than alpha 0.05 which means it has a significant impact on the technical efficiency of using oil palm fertilizer in Sekernan District, Muaro Jambi Regency. However, simultaneously all independent variables have a significant effect on the confidence level of 0.05.

Keywords:

Oil Palm Farming; Technical Efficiency; DEA, DEA VRS; Input Approach; Tobit's Regression.

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