The Effects of Land Ownership on Production, Labor Allocation, and Rice Farming Efficiency

• Main Authors: Mohammad Rondhi, Ad Hariyanto Adi
• Format: Article
• Language: Indonesian
• Published: Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta 2018-12-01
• Series: Agraris: Journal of Agribusiness and Rural Development Research
• Subjects: farmer welfare, informal contract farming, kedokan, land ownership
• Online Access: http://journal.umy.ac.id/index.php/ag/article/view/5033

<p>Land is the main input in agricultural production and also a wealth-generating asset for farmers. There are three common forms of agricultural land ownership:<em>owned land</em>, <em>rented land</em>, and <em>sharecropped (kedokan)</em> land, where each of them are directly affects the farming performance. The purpose of this study was to analyze the effect of land ownership<span style="text-decoration: line-through;">s</span> on farm production, labor use, and farm economic efficiency. The sample used in this study were 150 farmers equally distributed in each ownership group from a population of 1039 farmers. <em>Cobb-</em><em>Douglas </em>production function, F-test, and RC ratio were used to estimate production function, the difference in labor use, and farm economic efficiency. The results showed that <em>rented land </em>has the highest productivity followed by <em>owned</em> and <em>sharecropped(kedokan) land.</em> Meanwhile, the <em>sharecroppedkedokan)land </em>has the lowest labor use, followed by <em>rented </em>and <em>owned </em>land. However, in term of profitability, <em>owned land </em>is the highest followed by <em>rented</em> and <em>sharecropped</em> land. The results also showed that <em>sharecropping(ngedok) </em>as an informal contract farming between farmer and landlord was the best economic choice for the <em>landlord. </em>Furthermore, to improve farmers welfare, the landless farmers should be facilitated to own their own land.</p>