An analysis of tenancy for paddy farmers in West Java, Indonesia
Date
1983
Authors
Husein-sawit, M
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Abstract
The study of the role of tenancy in paddy production is very
important since tenancy may have affected the performance of rice
intensification programs through which the government intends to
increase production. The Department of Agriculture has assumed that
a tenant may have less incentive than an owner-operator to increase
production and to participate in the intensification programs. If
this is so, then production may be increased by changing the
institutional setting through tenancy reform.
This study attempts to test the effect of tenure status and farm
size on the allocation of resources used in paddy production. The
profit function approach is used to test for allocative efficiency
differences between farms of different tenure status and cultivated
area. This was done by measuring relative economic efficiency, relative
price efficiency, relative technical efficiency and absolute price
efficiency. In order to know the effectiveness of price policy, the
output supply response and labour demand functions are derived from
the profit function.
The results show that tenure status is not a constraint on
increased paddy production. However rearranging the institutional
setting through tenancy reform might reduce oligopsonistic power in
the land market, which is currently restricting the transfer of operating control
over agricultural land from the poor to the rich. Paddy price
policies still have some positive effect in increasing paddy supply. If the government redistributed the rice field land up to the
minimum of
losses and
0.5 hectare, then there would not be
there would probably be improvements
substantial efficiency
in income equality.
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