RISK BEHAVIOR ANALYSIS OF SHALLOT FARMER PRODUCTION IN BREBES, CENTRAL JAVA, INDONESIA – AJHSSR

RISK BEHAVIOR ANALYSIS OF SHALLOT FARMER PRODUCTION IN BREBES, CENTRAL JAVA, INDONESIA

RISK BEHAVIOR ANALYSIS OF SHALLOT FARMER PRODUCTION IN BREBES, CENTRAL JAVA, INDONESIA

ABSTRACT :The role of shallot as a commodity that has high economic value is faced with farming that hasa high risk. The risks faced by farmers will affect the behavior of farmers in dealing with risks. This study aimsto: (1) analyze the factors of production that affect productivity, production risks and inefficiencies of farmers,(2) analyze the behavior of farmers in facing production risks and (3) analyze the socio-economic factors thatinfluence the risk behavior of farmers. Data analysis uses a model that has been developed by Kumbhakar. Theresults showed that female paid labor input and adhesive had a negative effect on productivity while seed had apositive effect on productivity. Male family labor and Adhesive inputs can increase the risk of shallot farmingproduction. ZA fertilizer can reduce technical inefficiencies. Shallot farmers on average in the study location arerisk averse in the allocation of the use of production inputs. The number of family members of productive ageand extension dummy from the private sector has a positive and significant effect on the probability of farmerrisk behavior.

KEYWORDS : Risk Behavior, Shallots, Productivity, Production Risk, Frontier