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Correlation of the Influence of Management Factor and Farmer's Behavior in Technical Efficiency and Production Risk: A Case Study on Organic Rice Farming with Environmental Perspectives in Indonesia

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  • Ignatius Suprih Sudrajat

Abstract

This research is a study of organic rice farming with environmental perspectives. This study aims to analyze the correlation between the influence of management factor and farmer's behavior in technical efficiency and production risk on organic rice farming carried out in Dlingo Village, Mojosongo District, Boyolali Regency, Central Java Province, Indonesia. This research was conducted on 216 organic rice farmers as a sample during two planting seasons with a purposive sampling method. This study uses a stochastic frontier approach on production function with cross section data and the Just and Pope's function model and statistical package approach to the social sciences method on production risk. The results of this study are farming system management factor as the most dominant factor in technical efficiency with a coefficient value of -0.4527; the behavior of farmers who dare to face production risks (53.70%); tractor’s rental fee as the most influential correlation factor in production (0.1486) and production risk (0.310); and the need for production management and production risk in organic rice farming in Boyolali Regency, Indonesia.

Suggested Citation

  • Ignatius Suprih Sudrajat, 2020. "Correlation of the Influence of Management Factor and Farmer's Behavior in Technical Efficiency and Production Risk: A Case Study on Organic Rice Farming with Environmental Perspectives in Indonesia," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 7(1), pages 27-44.
    • Handle: RePEc:onl:ijebms:v:7:y:2020:i:1:p:27-44:id:255
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