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...

Full description

Bibliographic Details
Main Authors: Rosihan Asmara, Wenny Mamilianti, Nuhfil Hanani, Moch. Muslich Mustadjab
Format: Article
Language:English
Published: Universitas Brawijaya 2022-03-01
Series:AGRIVITA Journal of Agricultural Science
Subjects:
Online Access:https://agrivita.ub.ac.id/index.php/agrivita/article/view/3650
_version_ 1818491022217314304
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
work_keys_str_mv AT rosihanasmara potatofluctuationandriskpreferenceofpotatofarminginthebromoplateauindonesia
AT wennymamilianti potatofluctuationandriskpreferenceofpotatofarminginthebromoplateauindonesia
AT nuhfilhanani potatofluctuationandriskpreferenceofpotatofarminginthebromoplateauindonesia
AT mochmuslichmustadjab potatofluctuationandriskpreferenceofpotatofarminginthebromoplateauindonesia