Kuntjoro, Sri Utami, Indonesia
Forum Pasca Sarjana Vol. 31 No. 1 (2008): Forum Pascasarjana - Articles
Integrated crop-livestock systems program with special reference to rice field and beef cattle is a potential alternative to support the development of agriculture sector in Indonesia. The implementation on this integrated program was to enhance rice production and productivity through a system involving beef cattle with its goal on increasing farmers’ income. The impact of integrated crop- livestock systems program to household economy farmers was studied in order to identify factors influencing behavior of farmer’s decision-making along with its interrelation between factors. Impact of changes due to the external policy options was also assessed and farmer’s characteristics were described descriptively. Five districts in the province of DIY, Central Java and East Java with 274 farmers were purposively used in the study. Simultaneous equations model with two SLS method was used to estimate the parameter, followed by the non-linear simulation approach. The results show that most of the explanatory variables significantly affected to its endogenous variables. Rice production is responsive to harvested land area which influenced by its volume of input rice derived demand. The volume of its input derived demand also influences cattle and compost production. Family labor utilization for rice and cattle production and their time allocation on non-farm and off farm jobs are related to each other. Input price of rice and live cattle are affected to their derived demand function. Rice consumption is responsive to its price which the lower the price, the higher its consumption. Credit on crops farm that has to be paid by farmers is also responsive and positively related to its commercial credit rate. Effect of a 10 percent increase on output and input price of production rice, cattle and compost will increase their production; hence will also increase farmers’ income and the expenditures. This will apply to farmers that involved in a program of integrated crop-livestock systems. On the other hand, alternative policy of combination between a 10 percent increase of output price along with 5 percent increase on its input price yield in the increasing production for farmers that are not involved in the crop-livestock systems program, hence will also increase the income.
Key words: household economics, simulation analysis, crop-livestock systems
Forum Pasca Sarjana Vol. 33 No. 2 (2010): Forum Pascasarjana - Articles
This article reported risk preferences and the consequences on tobacco farming in Pamekasan. Frontier production function model with heteroskedastic error structure estimated by maximume likelihood estimation developed by Kumbhakar was adopted to analyze the goals. This model can capture the effect of risk preference on input allocation, inefficiency and productivity. Four hundred fifty samples were drawn by cluster sampling method. The results show that risk preferences were not depended on agroecosystem and farming system, but they were determined by farm size. Most of the farmers prefered to avoid production risk. The consequences were input allocation under optimum condition, technical and allocative efficiencies at a low level, and depleted productivity.
Forum Pasca Sarjana Vol. 32 No. 3 (2009): Forum Pascasarjana - Articles
Household farmers have allocated the family labour resources to their cattle farming that contribute to farmers’ income generation and distributed to their household expenditures. Household farmers face the transaction cost during the production process. The highest transaction cost, the least income allocation. The objectives of the study were (1) to develop household economy model in the corn-cattle farming system include transaction cost and (2) to analyze factors influencing the input use, output, income generation and expenditures of household farmers. A survey was used to gather and collect information of 194 household farmers that sampling by simple random. Simultaneous equations model with to SLS method was used to estimate the parameter. The result showed that household economy model could describe promptly the impact of transaction cost. The transaction cost significantly affected the farmers behavior on production decision, the use of production input and family labor as well as consumption expenditures. A change on the policy of increasing output price, transaction costs of the cattle intermediaries and corn transport cost have affected the farmer’s household economic performances.
Key words: transaction cost, household economics, corn-cattle farming systems