Relative Efficiency of Potato Farming with Data Envelopment Analysis (DEA) Approach in Karangreja District, Purbalingga Regency

Abstract

Potato farming has a contribution in improving the welfare of potato farmers in Karangreja District. However, a high amount of production does not guarantee farmers get high profits as well. The level of income obtained by farmers depends on the level of production achieved in managing their farm with the support of the application of farming technology and the price received in the sale of their production. This study aims are determining the level of technical efficiency of potato farming in Karangreja, Purbalingga and its determinant factors. Output oriented assumption measure efficiency score from each farms observed analyzed with Data Envelopment Analysis (DEA). The sampling method is purposive. The method of analysis uses data envelopment analysis. Based on DEA-CRS calculations, there are 45,71% potato farming which has been efficient, while the calculations of DEA-VRS shows there are 51,43% potato farming which has been efficient; The average technical efficiency with the constant return to scale (CRS) approach is 0.883 while the technical efficiency with the variable return to scale approach is 0.919; and Farms that have reached the condition of Constant Return to scale are 51.43%. This is that most of the Atlantic potato farmers in Karangreja District have been optimal in allocating their inputs.