Economic Efficiency Analysis of Rice Farming That Returns Straw Compared to Those That Do Not Return Straw to Rice Fields in Subang Regency, West Java, Indonesia

Abstract

The potential of harvested rice straw in Subang Regency which is very large should not be burned, but used as compost to meet half of the needs of chemical fertilizers. Thus the efficiency of farmer farming can be increased due to the transition and reduction in the cost of purchasing inorganic fertilizers. The difference in attitude is caused by differences in farmers' perception of the technology of straw restoration. This study aims to describe find out whether there are differences in the level of technical, allocative and economic efficiency between farmer that returns straw to paddy fields and which does not return. Research was conducted on 228 sample farmers in the Binong Subdistrict, Pusakanegara, and Patokbeusi Sub-District, West Java. The research design uses quantitative by using sample withdrawals multi stage cluster sampling. Data collection with interview techniques with questionnaire instruments. Data were analyzed using  production functions stochastic frontier cobb douglas. The results of the analysis concluded the level of technical efficiency of farmers who return hay to rice fields by 93% and those who do not return 95%, the allocative efficiency level of farmers who return hay to paddy fields by 73% and those who do not return 59%, and the level of economic efficiency of farmers who return straw to rice fields by 67% and those that do not return by 56%. The level of allocative and economic efficiency of farmers who return straw to paddy fields is higher than those who do not.