ANALYSIS OF EFFICIENCY AND ECONOMIES OF SCALE OF PEANUT FARMING ON SWAMP LAND IN LABUAN AMAS SELATAN SUB-DISTRICT OF HULU SUNGAI TENGAH REGENCY

Abstract

The objectives of this study were to find out the factors influencin g peanut production on swamp land in Labuan Amas Selatan Sub-district, the efficiency of production factors of peanut farming (technical efficiency and allocative efficiency), and the economies of scale of peanut farming on swamp land in Labuan Amas Selatan Sub-district. The study started from July to October 2013. The selection of farmer respondents was conducted in several stages, namely the determination of the population, the sample collection of the area, and the sampling of the peanut farmers as the r espondents. All the sampling activities should be in accordance with the quality and characteristics of a population. The sampling technique employed in this study was cluster sampling technique (area sampling). The sample collection in each group of farme rs (of small and large areas) in each village conducted using proportional stratified random sampling. The total samples were 80 farmers. Factors influencing the production of peanut on swamp land in Labuan Amas Selatan Sub-district were of land, seed, and labor. The use of production factors of land and chemical fertilizer yet reach the level of efficiency. On the basis of the production function analysis of the farming scale, the result showed that F was significant at a confidence level of more than 99 % (a = 0.001). Therefore, it could be determined that H0 was rejected (ɑ + β = 1/ CRTS) and H1 was accepted (ɑ + β ≠ 1/CIRS). This result indicated that the peanut farming was not on constant returns to scale (IRTS). In order to find out the economies of scale of peanut farming, it can be seen from its production coefficient, which was 2.0393, meaning that the scale of peanut farming was at increasing returns to scale.