Analysis of Allocative Efficiency of Watermelon Farming in Kapuas Regency, Central Kalimantan Province

The objective of this research is to analyze the costs, revenues, and profits of watermelon farming, to examine the impact of the use of production factors in watermelon farming, and to evaluate the allocative efficiency level of watermelon farming in Kapuas Regency, Central Kalimantan Province. The population of this research consists of 113 farmers, from which 55 were selected using simple random sampling techniques. The data processing method used to analyze the costs, revenues, and profits of watermelon farming includes using a multiple linear regression model, specifically the Cobb-Douglas function type. Additionally, to analyze the allocative efficiency of production factors used by farmers in watermelon farming, the comparison of a production factor’s Marginal Product Value (MPVx) with the price of the production factor (Px) is set to be equal to 1. Based on the results of the research and data processing, the average revenue obtained from watermelon farming in Kapuas Regency is IDR 75,619,181.82 per farm, and the average profit earned by watermelon farmers is IDR 45,541,259 per farm. The statistical test results of the Cobb-Douglas production function show that collectively (simultaneously), the production factors (land area, number of seeds, organic fertilizer, inorganic fertilizer, pesticides, and labor) significantly affect watermelon production. However, the partial test results indicate that the production factors of land area, seeds, organic fertilizer, inorganic fertilizer, and labor significantly affect watermelon production, except for the production factor of pesticides. The statistical test results for allocative efficiency (price efficiency) show that three production factors, namely organic fertilizer, labor, and pesticides, are used efficiently, meaning the marginal product equals the price of the production factor. The use of land area, seeds, and inorganic fertilizer is not yet efficient and needs to be increased to reach an efficient point.