ANALYSIS OF PROFIT FUNCTION AND RETURNS TO SCALE OF RICE FARMING IN TIDAL AND FRESHWATER SWAMPLANDS IN SOUTH KALIMANTAN

Rifiana Rifiana, Kamiliah Wilda, Yudi Ferrianta

Abstract


The purpose of this study was to estimate the production and profit function by farmers and to analyze the relative economic efficiency of rice farming in two typologies of wetland, tidal swampland and freshwater swampland. The analysis showed that the production facilities in the study area were very influential on the rice farming profit, so an increase in the high price of production facility would lead to a decrease in profit, which in turn would lower the level of farmers’ welfare. Under optimal conditions where maximum profit was reached, the effects of variable input prices and the input number remained significant except for the value of the equipment used. Based on the value of the coefficient function of fertilizer demand, pesticide and labor were inelastic towards the price while the seed input was elastic. Rice farming in the study area had decreasing returns to scale. It indicated that the increase in inputs was higher than the increase in returns.
Keywords: profit function, rice farming, returns to scale


Full Text:

PDF

References


Alihamsyah, T. (2005). Development of Freshwater swampland for Farming. Swamp Land Agricultural Research Center. Agricultural Research and Development Agency. Banjarbaru.

Hanani, N. (2011). Strengthening Community’s Social Economic Condition in Achieving Food Security. Proceedings of the National Seminar. Jambi University 19 February 2011.

Hanani, N. (2012). Strategy of Six Pillars for Food Security Development. Inauguration speech in Agricultural Economics at Faculty of Agriculture. Brawijaya University. Malang.

Hidayat, T. (2010). Science Contestation with Local Farmers’ Knowledge in Tidal swampland Management in South Kalimantan. Dissertation. Postgraduate program. Bogor Agricultural University. Bogor.

Noor, M. (1996). Marginal Rice Land. Penebar Swadaya. Jakarta.

Noor, M. (2007). Freshwater Swamps: Ecology, Utilization and Development. Rajawali Press. Jakarta.

Nugroho, K., Alkasuma, Paidi, W., Wahdini, Abdulrachman, H., Suhardjo, & Widjaja-Adhi, I.P.G. (1991). Final Report. Determining Potential Areas of Tidal Lands, Swamps, and Beaches. A scale of 1: 500,000. Technical report No. 1/PRSP/1991/. Research Project of Land Resources. Soil and Agro-climatic Research Center.

Purwaningsih & Yunastiti. 2008. Food Security: Situation, Problems, Policy and Community Empowerment. Development Economics Journal 9 (1): 1-27.

Ramonteu, S., Gutierrz, M.L. & Levang, P. (2000). Between Land and Water. Ministry of Transmigration and Forest Squatter Resettlement. Jakarta.

Saliem, H. P., Lokollo, E.M., Purwantini, T.B., Ariani and Marisa, Y. (2005). Food Security Analysis of Household and Regional Levels. Agro Economic Bulletin.

Sarwani, M. (1994). Environmental Aspects in Tidal Land Development. A Case of Peat Region Depreciation in Peat Areas of Pulau Petak Delta in South and Central Kalimantan. Research Institute of Food Crops. Banjarbaru.


Refbacks

  • There are currently no refbacks.


Copyright (c) 2017 TROPICAL WETLAND JOURNAL

Creative Commons License
Tropical Wetland Journal by Program Pascasarjana Universitas Lambung Mangkurat is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://twj.unlam.ac.id/index.php/twj.