Technical Efficiency Of Integrated Smallholder Oil Palm With Cattle In Riau Province, Indonesia

Yuhendra Yuhendra, Yusman Syaukat, Sri Hartoyo, Nunung Kusnadi

Abstract


The point of the study is to examine the level of technical efficiency of smallholders oil palm plantations that integrate and do not integrate, as well as to identify factors that impact technical inefficiency. This study relied on cross-section data from 300 houses. The technical efficiency value of smallholder oil palm plantations integrated with cattle was measured and compared in this study using the stochastic frontier production function in linear form with the natural logarithm transformation of the Cobb-Douglas production function. Oil palm output is determined by the number of plants, the use of labor outside the home, the usage of pesticides, and the use of labor inside of the family for integrated farmers. Non-integrated farmers, on either hand, are only influenced by the number of plants. On average, integrated farmers achieve 94.49 percent technical efficiency, whereas non-integrated farmers achieve 82.40 percent. The dependent ratio, household size, farmer experience, and extension support do influence technical efficiency in smallholder oil palm plantations that integrate

Keywords


integrated oil palm-cattle, stochastic frontier, technical efficiency

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v30.2.3947

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