Determinant Factors of Technical Inefficiency of Soybean Farming in Pangandaran Regency

Abstract

This study was conducted using the stochastic frontier production function which incorporates technical efficiency effect model. The research data was obtained from 40 soybean farmers by using structured questionnaire. The parameter values are estimated simultaneously using the technical efficiency effect model. The result showed that seed, labor, chemical fertilizer and organic fertilizer have significant effect to soybean production, while land and insecticide have no significant effect. The inefficiency model shows that age, experience and family size have significant effect to the level of technical inefficiency, whereas education has no significant effect.

Keywords: farming, soybean, technical efficiency, technical inefficiency