Author : Aulia Tasman

Summary : This study aimed to measure the technical efficiency and technological change in rubber farming. It also examined the determinants of technical efficiency. Total factor productivity (TFP) was decomposed into gains from technical efficiency and technological change. Data collection was done in Batang Hari regency, Jambi - Indonesia from farmers belonging to the traditional group and to government estates. This cross section data were used to simulate the behavior of the time series data, based on potential yield and age of tree. The modified translog production frontier function was constructed to decompose TFP. The average technical efficiency (TE) is 88.0 percent, 87.9 percent and 88.7 in group ages 1 (7-13 years), 2 (14-17 years) and 3 (18-30 years, respectively. There are 29.0 percent, 27.7 percent, and 30.3 percent of farmers who attained TE indices from 96 percent - 100 percent in group ages 1, 2 and 3, respectively. This mean that 69.7 percent to 71.0 percent of farmers are less efficient. Farmers in government estates use the HYV, therefore they have the same technological frontier. However, some traditional farmers use local varieties, so that among this group, there is a mix of technologies that could muddle the analysis. Any program to help farmers to improve technical efficiency should focus more on the farmers in group age 2 where there is around 11 percent to 15 percent possibility of increasing output which can help the farmers to exploit the peak potential yield of their crops The main factors influencing positively the TE level achieved are: farmer education, farmer experience, and the number of adults in the family. Other factors like tapping age of the tree and family size influence TE negatively. Any attempt to improve income should therefore focus on increasing their level of education and experiences of the rubber farmers. The farmers are experiencing positive technological change in group age 1 with values ranging from 13.9 percent to 15.1 percent and 2.3 percent to 4.6 percent in group age.