Inflation in North Sumatera Province fluctuates annually. The contribution of foodstuffs to inflation in North Sumatera Province shows a high contribution. This study analyzes the fluctuations in commodity prices for rice, red chilies, onion and garlic. The data used are monthly time series data in the form of Consumer Price Index (CPI) and food commodity prices in the period January 2000 to December 2017. The purpose of this study was to analyze the impact of fluctuations in food commodity prices (rice, red chilies, onion, and garlic) to inflation in North Sumatera Province. The data analysis method used in this research is robust regression. The results of this study indicate that the commodities of rice, red chilies, and onion had positive and significant impact on inflation in North Sumatera Province, while garlic commodity did not have any significant impact on inflation in North Sumatera Province.
Deficit irrigation is one of the keys in overcoming the problem of weather variability and limited water resources. Farmers can reduce the amount of irrigation water use without affecting too much on the productivity of rice plants by using deficit irrigation. The level of deviation of rice production increases when the water level changes between the ranges of 0-2.5 cm. The tendency to decrease from the level of deviation of agricultural production is seen when the water level increases in the range of 2.5-10 cm. At a water level of 12.5 cm there is a considerable increase in deviation. However, there was a significant decrease in the level of deviation of rice production when the water level was at 15 cm. Based on this, it can be concluded that the risk management of rice production will be better when the water level is above 2.5 cm and below 15 cm. The results of this study not only can be used for the development of risk-based farmers’ decision models but can also be used as input for the development of government policies in resource sharing and development of agricultural insurance
Non-organic farming will deteriorate the land and decrease the total factor productivity, which may result to higher production cost and low crop yield in the long run. However, Indonesian government initiative to become less dependent on non-organic rice farming by encouraging farmer to plant organic rice seems unsuccessful. Nevertheless, the most rice consumed in Indonesia is from non-organic farming. This study uses data envelopment analysis (DEA) based on non-parametric approach to measure technical, allocative and economic efficiency. This study found that pesticide and irrigation is underutilized, but fertilizer and labor are being overutilized. Even though most farmer are technically efficient, better efficient input allocation can improve the efficiency. Organic rice farming is less efficient than non-organic farming due to its low crop yield. Farmer with longer education background tend to be less efficient and more inclination toward planting organic rice.
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