ANALYSIS OF THE INFLUENCE OF PRODUCTION FACTORS ON THE PRODUCTION OF CASSAVA FARMING BUSINESS IN SALATIGA CITY

Abstract

Cassava farming in Salatiga City is a food-crop commodity farming business that has good opportunities because the demand for cassava in the market is increasing. However, some obstacles hinder cassava farming, namely cassava productivity which has not reached the target and limited production factors. This indicates that the use of production factors is still not efficient. Production factors that directly affect the productivity of cassava are land area, seeds, fertilizers, and labor. The aims of this study were: (1) to analyze the influence of production factors on cassava production, (2) to analyze the level of elasticity of cassava production factors, and (3) to analyze the level of technical efficiency and economic efficiency in cassava farming activities in Salatiga City. The analytical method used is the Cobb-Douglas production function with the help of the SPSS program to examine the influence of factors on cassava production and production elasticity. Technical efficiency is analyzed using the stochastic frontier production function. The results showed that the factors of seeds, manure, and labor were thought to affect cassava farming. The results of the elasticity analysis of all factors of production are in the rational area (Region II) with a positive value. The results of the technical efficiency analysis show that only the seed variable has a positive and significant value. Based on the results of the calculation of economic efficiency analysis, it shows that the input use of the land area, seeds, manure, and labor is not efficient.

Keywords

• Factors of Production
• Cassava
• Cobb Douglass Production Function
• Elasticity