Economic Efficiency and Scale of Rice Production
in Bogor District
Yunus Arifien
1
Sari Anggaawati
1
and Iis Anisa Yulia
1
1
Nusa Bangsa University
Email: yunus@unb.ac.id
ABSTRACT
Setting cropping patterns in the use of paddy fields is one of the important steps that determine the income, use and
distribution of farmer's labor. This research is a descriptive research which is carried out by utilizing secondary
production data, cost analysis in Bogor Regency. Analysis using regression equations, scale of business and economic
efficiency by determining the area of rice fields and farmer's labor with other production factors. the added value of
the regression coefficient of the production factors is 0.84 < 1. This indicates that rice farming in Bogor Regency
follows the rule of Reduction to scale, which means that the addition of production factors exceeds the proportion of
additional production yields. Therefore, it must reduce the average farming costs so as to increase profits. The results
of the analysis of the economic efficiency of farming that the comparison value between the value of the marginal
product and the price of each production factor is 0.83 for the land area production factor, 0.28 for the labor
production factor, 20,98 for urea fertilizer, and 4.36 for KCl fertilizer which has more value from 1 is already
efficient.
Keywords: lowland rice, farming, production factors, business scale, and economic efficiency
1. INTRODUCTION
1.1. Background
Population development accompanied by human
efforts to improve their welfare often results in the
worsening of the carrying capacity of the region, which
is often exacerbated by the existence of increasingly
sharp land use conflicts. Land resources are becoming
increasingly important along with the increasing
population at a high rate and as a result of the
development of economic activities. This situation
brings the consequence that the demand for land for
various purposes is increasingly diverse, such as for the
expansion of agricultural land, production forest
plantations, settlements/housing, mining as well as for
locations for trade/business and industrial activities as
well as infrastructure development needs (roads,
irrigation, and land use) other public infrastructure.
Land use is a form of farmers' efforts to utilize their
land, namely managing land by determining and
regulating plant types according to a certain area and
turn so that optimal results can be obtained for certain
purposes [1].
Along with increasing population growth, the
demand for food, especially rice staple food, also
increases. One of the efforts that can be done to meet
this demand is by farming rice commodities. The
development of rice production in Indonesia during the
2007-2012 period showed a positive growth trend,
increasing from 57,157 million tons of GKG in 2007 to
68.956 million tons of GKG in 2012, or grew by an
average of 3.86 percent every year and in 2012 it
reached 3.86 percent highest production rate. The
achievement of rice production in 2012 was caused by
an average productivity increase of 2.79 percent (1.39
ku/ha) from 49.80 ku/ha in 2011 to 51.19 ku/ha in 2012,
as well as an increase in harvested area of 2 .03 percent
(268,010 ha) from 13,204 million ha in 2011 to 13,472
million ha in 2012 [2].
West Java Province is one of the national food
buffer provinces which is one of the centers of rice
production. Therefore, rice farming activities in West
Java Province are dominated by rice farming, with
lowland rice production in 2013 amounting to 11.54
million tons. Supplier of national food crops with a
national rice contribution of 15% with a harvested area
of 1.90 million hectares.
Advances in Biological Sciences Research, volume 19
Proceedings of the 2nd International Conference on Smart and Innovative Agriculture (ICoSIA 2021)
Copyright © 2022 The Authors. Published by Atlantis Press International B.V.
This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 266