[Alternative of price policy to increase rice production and farmer income (cases in South Sulawesi and West Sumatra)]
1989
Hadi, P.U. (Pusat Penelitian Agro Ekonomi, Bogor (Indonesia))
The aim of rice-price support and input-subsidy schemes is to increase domestic rice production and farmers' income. Employing the Cobb-Douglas profit function approach, the present study found that the lowland rice farmers in South Sulawesi and West Sumatra are profit maximisers, the production exhibits constant return to scale, and equal economic efficiency of small and large farm size and of two regions exists. In order to increase both rice production and farmers' income, the relative prices of inputs to output should be lowered.
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