Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia
Potato farming in Indonesia is performed in the highlands, has a high production risk due to sloping land topography and steep slopes. In addition, low managerial ability in responding to sources of production risk results in the input allocation producing non-optimal production. This research aims...
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Format: | Article |
Language: | English |
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Universitas Brawijaya
2022-03-01
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Series: | AGRIVITA Journal of Agricultural Science |
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Online Access: | https://agrivita.ub.ac.id/index.php/agrivita/article/view/3650 |
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author | Rosihan Asmara Wenny Mamilianti Nuhfil Hanani Moch. Muslich Mustadjab |
author_facet | Rosihan Asmara Wenny Mamilianti Nuhfil Hanani Moch. Muslich Mustadjab |
author_sort | Rosihan Asmara |
collection | DOAJ |
description | Potato farming in Indonesia is performed in the highlands, has a high production risk due to sloping land topography and steep slopes. In addition, low managerial ability in responding to sources of production risk results in the input allocation producing non-optimal production. This research aims to identify production fluctuation and farmers’ risk preferences, measure the level of technical efficiency, and determine the effect of risk preference on technical efficiency. The respondents in this study are 83 farmers. The Just and Pope risk function is used with a utility function approach to finding farmers’ risk preferences. The stochastic Frontier Cobb Douglas processes technical efficiency measurements. While to find out the influence of the factors that influence efficiency, Tobit regression is used. The analysis shows that the respondent’s behave risk-takers amounted to 62.65%. Respondents have not yet reached technical efficiency with an average level of technical efficiency of 0.774. Education, frequency of counseling and training, the application of terrace systems have a significant positive effect on technical efficiency, while land slope has a significant negative impact. Risk preference isn’t affected by technical efficiency and shows positive signs. |
first_indexed | 2024-12-10T17:24:44Z |
format | Article |
id | doaj.art-aa3fdcd28e244bb796f4b419c53fbbd7 |
institution | Directory Open Access Journal |
issn | 0126-0537 2477-8516 |
language | English |
last_indexed | 2024-12-10T17:24:44Z |
publishDate | 2022-03-01 |
publisher | Universitas Brawijaya |
record_format | Article |
series | AGRIVITA Journal of Agricultural Science |
spelling | doaj.art-aa3fdcd28e244bb796f4b419c53fbbd72022-12-22T01:39:53ZengUniversitas BrawijayaAGRIVITA Journal of Agricultural Science0126-05372477-85162022-03-0144222523410.17503/agrivita.v44i2.3650657Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, IndonesiaRosihan Asmara0Wenny Mamilianti1Nuhfil Hanani2Moch. Muslich Mustadjab3Faculty of Agriculture, Universitas Brawijaya, Malang, 65145, East Java, Indonesia (Scopus ID: 57211948324)Faculty of Agriculture, Universitas Yudharta Pasuruan, 67162, East Java, IndonesiaFaculty of Agriculture, Universitas Brawijaya, Malang, 65145, East Java, IndonesiaFaculty of Agriculture, Universitas Brawijaya, Malang, 65145, East Java, IndonesiaPotato farming in Indonesia is performed in the highlands, has a high production risk due to sloping land topography and steep slopes. In addition, low managerial ability in responding to sources of production risk results in the input allocation producing non-optimal production. This research aims to identify production fluctuation and farmers’ risk preferences, measure the level of technical efficiency, and determine the effect of risk preference on technical efficiency. The respondents in this study are 83 farmers. The Just and Pope risk function is used with a utility function approach to finding farmers’ risk preferences. The stochastic Frontier Cobb Douglas processes technical efficiency measurements. While to find out the influence of the factors that influence efficiency, Tobit regression is used. The analysis shows that the respondent’s behave risk-takers amounted to 62.65%. Respondents have not yet reached technical efficiency with an average level of technical efficiency of 0.774. Education, frequency of counseling and training, the application of terrace systems have a significant positive effect on technical efficiency, while land slope has a significant negative impact. Risk preference isn’t affected by technical efficiency and shows positive signs.https://agrivita.ub.ac.id/index.php/agrivita/article/view/3650bromo highlandindonesiapotatorisk preferencestechnical efficiency |
spellingShingle | Rosihan Asmara Wenny Mamilianti Nuhfil Hanani Moch. Muslich Mustadjab Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia AGRIVITA Journal of Agricultural Science bromo highland indonesia potato risk preferences technical efficiency |
title | Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia |
title_full | Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia |
title_fullStr | Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia |
title_full_unstemmed | Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia |
title_short | Potato Fluctuation and Risk Preference of Potato Farming in the Bromo Plateau, Indonesia |
title_sort | potato fluctuation and risk preference of potato farming in the bromo plateau indonesia |
topic | bromo highland indonesia potato risk preferences technical efficiency |
url | https://agrivita.ub.ac.id/index.php/agrivita/article/view/3650 |
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