Incorporating risk preferences of farmers and technologyin analysing the Total factor productivity of rice farming In malang, indonesia

The purposes of this research are a) to analyse the preference of farmers against natural and technological risks and classify them based on the use of inputs and profit, b) to analyze the influence of the farmer preferences and technology on productivity and c) to measure the total factor productivity of rice farming. The data collection method using in-depth interviews of the 305 selected farmers in the seven regions in Malang Regency (Indonesia). The research uses two planting seasons: the rainy season and the first dry season. The method of measuring risk preference is the Expected Utility of Income, stochastic frontier translog productivity function modification time dimension with MLE approach and the component-based approach. The results show that a) 77.7% of the farmers have a preference to avoid risk, where a group of farmers with a preference for the use of inputs (seeds, labour and fertilizer) less than other types of preference, as well as gains revenues and profits; b) there is effect on the productivity of farmer preference though very small of 0.01 and c) the value of TFP involving preference is equal to 0.44.