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All Journal Mamangan Social Science Journal
Priyanto, Trimo
Unknown Affiliation
Humanities Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Social Sciences

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Analysis Of Economic Efficiency of Palm Oil in Seberida Village Priyanto, Trimo; Apriyanto, Mulono; Ariyanto, Anto
Jurnal Mamangan Vol 14, No 1 (2025): Special Issue
Publisher : LPPM Universitas PGRI Sumatera Barat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22202/mamangan.v14i1.9402

Abstract

Oil palm productivity on smallholder farms remains low despite several interventions to transform agriculture, especially in developing countries. Farmers in rural areas face serious constraints that limit their oil palm production capacity. Smallholders have unprofitable access to markets which in turn makes their business less profitable. Therefore, this study analyzes oil palm productivity of smallholders in Seberida Village. A random sample of 50 oil palm smallholders was selected. The normalized translog productivity function was then calculated through one-step estimation of technical efficiency and its determinants using STATA software. The results showed that fertilizer cost and land area were positive factors that drove profits. Complementarity between resources was a very important determinant of profits. The study concluded that land area and farmers’ resources had a positive effect on oil palm production. Farming profits increased with the increase in land area. Therefore, this study recommends that policies that support commercialization of smallholders will increase agricultural profits.
Co-Authors Anto Ariyanto, Anto Apriyanto, Mulono