TECHNICAL EFFICIENCY OF SHALLOTS FARMING ON UPSUS PROGRAM USING STOCHASTIC FRONTIER ANALYSIS (CASE STUDY IN GONDANG SUB-DISTRICT, NGANJUK REGENCY, EAST JAVA, INDONESIA)

Abstract

These study aims to analyze the level of technical efficiency of shallots farming, and to analyze the factors that affect the inefficiency shallots farming in UPSUS APBN-P 2017 Program. This research uses Stochastic Frontier production function analysis method which aims to analyze the level of technical efficiency of shallots farmers in Gondang sub-district. The second analytical method is Tobit regression that aims to determine what factors affect the technical inefficiency in shallots farming in Gondang Sub-district. The result of this research is known that the average value of efficiency achieved is equal to 0.71. The total of 52 farmers are technically efficient and as many as 38 farmers are technically inefficient. In the result of Tobit regression analysis, it is known that the factors that significantly influence the technical inefficiency of shallots farming in Gondang sub-district are age, farming experience, training participation, and program officer control.