This analysis examines technical efficiency of organic fertilizer in rice farming, revealing implications for sustainability.
The heavy reliance of Indonesian rice farmers on inorganic fertilizers has led to land degradation and declining productivity, necessitating a shift toward more sustainable approaches. This study analyses the technical efficiency of organic fertilizer use in rice farming in Secanggang Subdistrict, Langkat Regency, employing an input-oriented Data Envelopment Analysis (DEA) model on a sample of 45 farmers. Input variables include land area (0.2–1.2 ha), organic fertilizer quantity (200–500 kg/ha), labor (15–30 person-days/season), and production costs (IDR 3–5 million/season), while outputs consist of productivity (4–6 tons/ha) and income (IDR 8–12 million/season). The DEA results indicate an average technical efficiency of 78% under the Constant Returns to Scale (CRS) model and 85% under the Variable Returns to Scale (VRS) model, with 22% of farmers achieving optimal efficiency levels (>90%). Further analysis reveals that farmers cultivating more than 0.5 hectares attained 12% higher efficiency compared to those with smaller plots (p < 0.05), and farming experience of over 10 years contributed to an 8% efficiency increase (p < 0.1). Economically, organic fertilizer use reduced production costs by 15–20% through the substitution of chemical inputs and increased average seasonal income by approximately IDR 1.2 million. The key findings of this study are: (1) there is a 22% potential gain in efficiency through input optimization; (2) managerial factors (experience, education) have a greater influence on efficiency than technical factors; and (3) an organic fertilizer dosage of 300–400 kg/ha yielded the most efficient outcomes.
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Hakim et al. (2025) studied this question.
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