Optimization Model of Use of Production in Order to Increase Production and Eficiency of Potato Business in Kerinci District, Jambi Province

Abstract

This research aims to; analyze the optimization model of the use of production inputs in order to increase production and the efficiency of potato farming. This study uses cross-section data from 62 farmers. Sampling was done by Simple Random Sampling. The approach taken to examine the response of production to inputs is made descriptively. The production and efficiency functions are estimated using the stochastic frontier production function and the dual cost function. The results showed that there was no optimal use of production inputs. The frontier production function was mainly determined by the input of seed production of SP-36 fertilizer, KCL fertilizer, and liquid insecticide. The determinants of optimal production are determined by the use of seeds, urea fertilizer, and the use of drugs. The optimal use of inputs can produce an optimal production of 21,768 kg, while the actual production is only 12,250 kg. The use of seeds, SP-36 fertilizer, organic fertilizers, liquid insecticides, and labor are risk-reducing productivity factors. The technical efficiency of potato farming is in the medium category (ET=0.6644). Sources of technical inefficiency mainly come from the land area, age, and distance of farming land. Meanwhile, income, farming experience education and the number of family members reduce the occurrence of technical inefficiency. Farmers' behavior in responding to productivity risks is the average risk taker.