INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 03, MARCH 2020 ISSN 2277-8616 345 IJSTR©2020 www.ijstr.org Acreage Response Under Price Policy Program On Corn Production Edison, Ira Wahyuni Abstract: The aim of research was to learn deeply acreage response using price policy program on agricultural corn production. Because of condition of corn in good position in moment of research, it was caused from government policy implementation on crop production such as input subsidy and support programs. The indicator of successfulness of those programs is influenced by the role of those programs in implementation. One of results of government policy effect was from implementation of support price program which produced better impact in acreage program. Its effect was very crucial in exploring this study, this is caused by high priority government to imply this policy program. In order to learn this phenomena, some approaches was used such as market and risk factors. Using assumption that the movement of policy implementation in the future, it is hoped that it can find the alternative best policy program. Using quantitative method, this mobility program can be analyzed considering some restriction. Research found that in condition of expected market price better than support price, it just used support price program in specific condition. Furthermore, truncation program effect was much better when support price was better than expected market price in making acreage decision. Index Terms: acreage, response, corn, government programs, subsidy, and price policy program ——————————  —————————— 1 INTRODUCTION In technological development era, government is eager to explore its resource in order to increase its income. In this case, the role of agricultural sector has played very important in which has been supporting business and improve farmers income nowadays, especially in corn production. One of Corn producing place in Indonesia is Jambi, which presented good movement in corn production in last decade. This condition is supported by improvement in government program facilities such as infrastructure and production facilities for producers [1], [2]. The good condition of corn production in recent years, may be changing in the next years [3], [2]. This changing is caused by the problem in economic and financial sources, which impacted in changing government support for this agricultural sector. Considering in this situations, study on agricultural policy has been emerging in doing research in area of acreage and demand inputs in corn production. studying in acreage response, like input used changing already presented on some studies [4], [5], [6]. However, it just want to explore acreage response and input in terms of price changing. Many agricultural commodities and business constraints are considered on price uncertainty, crops risk, and agricultural policy on Jambi. [1]. The policies are conducted including subsidies on input (like fertilizer, pesticide) and also supporting price policies to increase corn output. This government program is still debatable. To learn this program, this is crucial knowing farmers response to economic trigger like prices and not prices factors [2]. In many situations, it has to follow to changing price of producers response in corn products objectives, which contain using resources such as input land acreage, inside labor force, crop criteria, methods, outside labor force, product value and availability of income uncertainty and also farmers’ attitude towards risk. Moreover, Edison [3] also expressed economic business in agricultural sector or agribusiness, the situations of risk and uncertainty has been attended. In order to formulate agricultural policy, considering on producers response to price changing is important. In this situation, corn production will be influenced by increasing price, because farmers respond positively to price changing. Therefore, successfulness and right policy in price consider on indicators and significance of estimated acreage response [7], [8]. Policy makers in knowing the effect of other components on production is very crucial. Some constraints such as price input, technological change, management on risk farming and financial items has to be included in learning acreage response on research were crucial and important [9]. Acreage response on agricultural production has played very important role in empirical research nowadays. In order to learn production model on farmers behavior is used Neoclassical theory in which of high profit were already checked and got in the literature [10]. [11] has played theoretically that improved uncertainties causing price decrease in production optimality from competition crop. Even-though, estimation faced many constraints, acreage response has become important things for policy decisions in studying fundamental point of Jambi crop to be effectiveness, the impact of improvement and production developments [12]. Crucial points in learning production response are (a) under ex-ante expectations, production decisions was made and (b) some producers are considering risk component, although it has small income [13]. By considering risk point of view included in production or price on input and output, assumption of behavior used in case it wants to increase expected utility of profit. Considering risk agent point of view, marginal input expectation can differ from factor prices. When it is risk averse, the differences will occur in which risk components decrease risk variable or that variable increases [14]. Sustainable decision draw of agricultural production process generally because the existing time lags from allocation of input to output realization [15]. For Jambi corn production, farmers knowledge prefer to declare crops to be planted by considering on existing of information about prices, weather and insecticides, in study area. Therefore, producers will set input level like man-power, fertilizer and pesticide. When these components were irrational, producers are eager to simulate this model in every level, considering problems of its variable changing. If majority inputs was used, only few _____________________________________________ • Dr. Edison, is currently lecture of Agricultural Faculty, University of Jambi. HP. +6285266317732 E-mail: ediedison950@yahoo.co.id • Dr. Ira Wahyuni, is currently lecture of Agricultural Faculty, University of Jambi. HP. +628127491117. E-mail: irawahyunirikit@gmail.com