TECHNICAL EFFICIENCY ANALYSIS OF CAYENNE PEPPER (CAPSICUM FRUTESCENS L.) FARMING IN PERMATA INTAN DISTRICT OF MURUNG RAYA REGENCY, INDONESIA

Abstract

Cayenne pepper commodity farming has good and promising prospects because it can increase farmers' income. The production of a commodity is influenced by whether or not it is efficient in the allocation of input use and whether there is technical inefficiency problems related to the managerial capabilities of farmers. This study aims to analyze the effect of the use of production factors on maximum production, the level of technical efficiency, and the factors that cause technical inefficiency in cayenne pepper (Capsicum frutescens L.) farming in Permata Intan District, Murung Raya Regency. The results of the analysis showed that the production factor of land area, NPK fertilizer, and the use of plastic mulch had a significant effect on the level of = 0.01 while labor had a significant effect on the level of = 0.05 while the production factor of the number of seeds and pesticides had no significant effect on business production. Cayenne pepper farming is technically inefficient as seen from the average technical efficiency value achieved by respondent farmers of 0.398. The age factor did not significantly affect technical inefficiency, on the other hand, the formal education factor and the activeness of farmers in participating in the counseling had a significant effect on the technical inefficiency of cayenne pepper farming in Permata Intan District, Murung Raya Regency.

Keywords

• production factors
• efficiency
• technical
• cayenne pepper