Effect of Management Factor on Stochastic Frontier Production of Organic Rice Farming in Indonesia (Published)
The main problem in this study is the effect of management factor on stochastic frontier production of organic rice farming that emphasized production efficiency. The aim of this research was to analyze the role of managerial ability of farmers in organic rice farming production. This study was conducted on 216 organic rice farmers as a sample during two planting seasons with purposive sampling method. The sample was consisted of two farmer groups, i.e. Pangudi Bogo and Pangudi Raharjo in Dlingo Village, Mojosongo District, Boyolali Regency, Central Java Province, Indonesia. This research used stochastic frontier production function approach with cross section data and estimated with maximum likelihood estimation. The result showed that average value of production efficiency is 0.5928 and the most dominant variable in determining the technical inefficiency of organic rice farming was variable of farming system management.
Keywords: Indonesia, Management, Organic rice farming, Production, Stochastic Frontier