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Estimation of efficiency and risk behaviors productivity for rice farmers in the province of Jambi

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Author: 
Saidin Nainggolan, Amri Amir, Napitupulu, D.M.T. and Arman Delis
Abstract: 

Rice commodity business is always constrained in situations of risk and uncertainty, which in turn affect technical efficiency. With the information about inputs that increase risk (risk increasing) and a reduced risk (risk decrearising) will help farmers face and avoid risk productivity of paddy. This study aims to estimate technical efficiency and productivity of farmers' risk behavior. Risk productivity were analyzed using Model Khumbakar. Research sites in four districts in Jambi province are considered belong to production center. In general, technical efficiency of rice commodities business in category is moderate, the behavior of rice farmers in face the risk of productivity included in category of avoiding risk (risk averse). Factors that can affect farmers to take more risks, a policy to do is (1) the policy of increasing productivity by introducing modern technologies to farmers (2) mentoring by extension, increase energy agricultural extension so that farmers obtain counseling is better and easier to obtain information on input use optimal (3) add to amount of capital assistance for farmers to undertake the guidance and supervision of aid distributed (4) improving the network of partnerships between farmers, gapoktan, banks and other economies that can support procurement of inputs, credit and marketing.

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