| Summary: | This study aims to estimate the level of production efficiency (technical
efficiency, allocative efficiency and economic efficiency), determine the behavior
of farmers towards risk and predict the impact of national cotton policy on the
competitiveness of the cotton farming (comparative and competitive advantages)
in South Sulawesi, using a stochastic frontier production function. Farmer
behavior towards risk analysis refers to Moscardi and De Janvry methods, while
the competitiveness analysis using the Policy Analysis Matrix (PAM). Research
conducted in South Sulawesi at three locations districts by taking 150 samples of
respondents.
The results showed that cotton farming in South Sulawesi relatively
inefficient with an average value of technical efficiency, allocative efficiency and
economic efficiency, respectively 0.65, 0.39 and 0.62. This means that there are
still opportunities to improve crop productivity through good farm management.
Dominant factors that affect cotton production is land area, giving the amount of
urea, insecticide, herbicide spraying and labor utilization. While the factors that
most influence the inefficiency is aged farmers.
Cotton farmers in South Sulawesi in carrying cotton farming behave
risk-neutral towards input allocation, particularly urea. Cotton farming is carried
out through an accelerated program indicate a competitive advantage (PCR =
0.77) and comparative advantage (DRC = 0,33). The study also concluded that
there is a significant relationship between the level of efficiency achieved and the
competitiveness of cotton farming. Where the higher the efficiency, the level of
competitiveness is also getting bigger.
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