Impact of Increase in Input And Output Prices Toward Rice Production In Banten Province-Indonesia
DOI:
https://doi.org/10.14738/assrj.67.6731Abstract
In year 2014 the production of rice in Banten amounted to 2,045,883 tons with a harvested area of 386,398 ha. The objective of this study are: 1) to know the factors of influencing rice production in Banten Province, 2) to know the impact of price increase of input and output on paddy production in Banten Province. This method of study used survey method with 120 respondents. The analysis method uses Simultaneous Equations Model which was estimated using Two Stages Least Squares (2SLS) method. The results of the study were 1) The factors that affect rice production in Banten Province significantly are: Total Use of Certified Seeds, Total Use of SP-36 Fertilizers, Total Use of Solid Growing Substances, Total Use of Solid Pesticides, Total Use of Liquid Herbicides, Total Use of Labor Rent, Land area, and Farm Household Income per year. 2) From the simulation results that the increase in grain prices by 20% will increase production by 4.4% and household income of 11.6%. A 20% increase in the price of Urea and NPK fertilizers could increase rice production by 2.5% and farm household income by 1.1%. So the increase of farm input prices (fertilizer and wage of tractor and labor rent) by 20% does not affect rice production and farmer's income.
Keywords: simultaneous equation model, input and output prices, rice production.
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LIFE HISTORY AUTHOR Ir. Viktor Siagian, MSi, was born in Medan-North Sumatra Province, November 23 1963. History of his education: Elementary School in Medan 1975, Junior High School in Medan 1978, Senior High School Medan 1982, Bachelor Degree of Socio economic of Agriculture (S1) at Bogor Agricultural University-Bogor 1987, Master Degree of Agriculture Economics (S2) at Bogor Agricultural University- Bogor 2005. Since October 2005 – recently studying Environment Resources Management for Doctoral Program in Bogor Agricultural University. History of his Occupation : Researcher at Center for Agriculture and Socio Economic Research, AARD, Ministry of Agriculture 1990 - 2005, Researcher at Assessment Institute for Agricultural Technology of South Sumatra 2005 – 2011, Researcher at Assessment Institute for Agricultural Technology of Banten 2011 – present. In addition, the author is also a freelance columnist of agriculture in several Indonesian newspapers.
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