THE IMPACT OF PRICE CHANGES ON INPUT DEMAND AND OUTPUT SUPPLY IN THE UPLAND RICE FARMING OF BOYOLALI DISTRICT, CENTRAL JAVA, INDONESIA
Received: 13.06.2021; Revised: 22.07.2021, Accepted: 05.09.2021, Published Online: 16.09.2021
Dewi Sahara1*, Komalawati1, Forita Dyah Arianti1, Atman2, Idaryani3,
Jefny B. Markus Rawung4, Muhammad A. Mustaha5, A. Yulyani Fadwiwati6, Lis. M. Yapanto7, Rita Indrasti8, Siti Sehat Tan8, Rubiyo8
1Central Java Assessment Institute for Agricultural Technology
2West Sumatra Assessment Institute for Agricultural Technology
3South Sulawesi Assessment Institute for Agricultural Technology
4North Sulawesi Assessment Institute for Agricultural Technology
5Southeast Sulawesi Assesment Institute for Agricultural Technology
6Gorontalo Assessment Institute for Agricultural Technology
7Faculty of Fishery and Marine Science, Gorontalo, State University
8Indonesian Center for Assessment and Development of Agricultural Technology
Correspondence should be addressed to Dewi Sahara; dewisahara.ds@gmail.com
Abstract
The change in rice and production input prices will influence farmer decision for rice production. The study aimed to find an influence of production inputs and upland rice prices on rice supply and input production demands. The study was conducted at Kebonbimo Villages, Winong Subdistrict, and Sukorame Villages, Musuk Subdistrict, Boyolali District from February to April 2018. The study used a method survey. Data collected in the study were household characteristics, quantity, and prices of production inputs, quantity, and output prices. Data were analyzed by Seemingly Unrelated Regression (SUR). Results of the study indicated that change of rice prices was elastics to upland rice supply and production input demand, while production input prices change were inelastic to upland rice supply, except for change of labor’s wage. The elasticity value of production input demand to own price was -0.36 to -2.63, indicating that the high change of production input prices was led to reducing production input demands. The change of planting area and family members caused a direct change to upland rice supply dan production input demands. Therefore, increasing the upland rice supply can be done by increasing price and expanding the upland rice planting area.
Keywords: demand, elasticity, upland rice, supply, price change