TECHNICAL EFFICIENCY ANALYSIS OF SUGAR CANE FARMING IN EAST JAVA, INDONESIA (Statistical Approach of Frontier Production Functions)

Abstract

These research goals are to analyze the factors that affect the production of sugarcane, to analyze the level of technical efficiency of farming sugarcane, and to analyze the factors that technical inefficiency affecting sugarcane farming in the dry land and irrigated land. Methods of data analysis that is used to find out the factors that affect the production of sugarcane and the level of technical efficiency of sugarcane farming is a stochastic production frontier. In order to find the factors that affect technical inefficiency of sugarcane efficiency, Tobit analysis is applied. The results show that the influential factors towards the production of sugarcane in the moor land i.e. number of seedlings and the number of labor, while sugarcane production in the irrigated land are the amount of labor, urea fertilizer, ponska fertilizer and herbicides. The average technical efficiency of sugarcane farming achieved in the moor land is 0.887 and the average technical efficiency of irrigated land is 0.928. Factors that influence technical inefficiency of sugarcane farming in the dry land are rejuvenation of sugarcane (keprasan), frequency of counseling, and seeds. While the factors for irrigated land are rejuvenation of sugarcane (keprasan) and frequency of counseling.