TECHNICAL EFFICIENCY ANALYSIS OF SUGARCANE FARMING ON WET AND DRY LAND USING DATA ENVELOPMENT ANALYSIS (DEA) APPROACH
Fahriyah* , Nuhfil Hanani, Djoko Koestiono, Syafrial
Program Pascasarjana Fakultas Pertanian Universitas Brawijaya
*Penulis korespondensi: fahriyah.fp@ub.ac.id
ABSTRACT
The objectives of this study are to analyze pure technical efficiency of sugarcane
farming on both wet land and dry land and also to analyze their scale efficiency. The study
was conducted in Kediri and Jember districts as sugarcane production centers in East Java
Province using a survey of 201 sugarcane farmers for the 2015/2016 planting season. Data
Envelopment Analysis (DEA) was used to measure technical efficiency of sugarcane farming.
The result shows that average of technical efficiency level of sugarcane farming in wet land
is 0,8311 while for dry land is 0,7991. Score of this technical efficiency shows that both in
wet land and dry land of sugarcane plantation have possibilty to increase efficiency by 17%
and 20% respectively. The decomposition of the total technical efficiency (TE CRS) score into
pure technical efficiency score (TE VRS) and scale efficiency score show that the sugarcane
farming in research location had greater scale inefficiency than pure technical inefficiency.
99% of sugarcane farmers on wet land are operating on the IRS scale whereas sugarcane
farmers on dry land who operate on the IRS scale are 88%. Sugarcane farmers of wet land
who operate at their optimum scale (CRS), less (8% of total respondents) than dry land
farmers (10% of total respondents). This study implies that government should pay more
attention to improve scale efficiency of sugarcane farming to increase their technical
efficiency.
farming on both wet land and dry land and also to analyze their scale efficiency. The study
was conducted in Kediri and Jember districts as sugarcane production centers in East Java
Province using a survey of 201 sugarcane farmers for the 2015/2016 planting season. Data
Envelopment Analysis (DEA) was used to measure technical efficiency of sugarcane farming.
The result shows that average of technical efficiency level of sugarcane farming in wet land
is 0,8311 while for dry land is 0,7991. Score of this technical efficiency shows that both in
wet land and dry land of sugarcane plantation have possibilty to increase efficiency by 17%
and 20% respectively. The decomposition of the total technical efficiency (TE CRS) score into
pure technical efficiency score (TE VRS) and scale efficiency score show that the sugarcane
farming in research location had greater scale inefficiency than pure technical inefficiency.
99% of sugarcane farmers on wet land are operating on the IRS scale whereas sugarcane
farmers on dry land who operate on the IRS scale are 88%. Sugarcane farmers of wet land
who operate at their optimum scale (CRS), less (8% of total respondents) than dry land
farmers (10% of total respondents). This study implies that government should pay more
attention to improve scale efficiency of sugarcane farming to increase their technical
efficiency.
Keyword: Sugarcane, Technical Efficiency, DEA, Wet Land, Dry Land
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