Analysis of The Impact of Tractor Technology Use on Time Efficiency, Rice Production Costs, and Farmers' Welfare in Cangkring Village, Plered District, Cirebon Regency

Mechanized two-wheel tractors have become increasingly important for improving smallholder rice farming efficiency in Indonesia.This research analyzes the impact of introducing tractor-based tillage on labor time, production costs, and farmer welfare in Cangkring Village, Plered, Cirebon.A quantitative survey of 60 rice farmers was conducted, measuring farm budgets and using SEM-PLS modeling to link tractor adoption to efficiency and income outcomes.Results show average paddy yields of 7,000 kg/ha at IDR 6,500/kg, giving gross revenue ~IDR 45.5 million/ha.Total production cost averaged about IDR 20.635 million/ha (Rp17.97Mfixed and Rp2.67M variable), yielding a net profit of IDR 24.865 million/ha (R/C2.2).The cost of mechanized operations (hand tractor plowing plus power-threshing) was relatively low (~IDR 1.39 million/ha).SEM-PLS analysis confirms that tractor use significantly improved field efficiency (path 0.36, p=0.001) and reduced unit production costs (0.58,p<0.001).Both greater time efficiency (0.45,p<0.001) and lower costs (0.22,p=0.034) had significant positive effects on farmer welfare, and tractor use also had a significant direct positive effect on welfare (p=0.025).Mediation tests revealed strong indirect effects of mechanization on welfare via efficiency and cost savings (indirect 0.806 and 0.804, p<0.001 each).These findings indicate that small-scale tractor mechanization substantially boosts productivity and profitability for Indonesian rice farmers.In conclusion, adopting tractor-based mechanization greatly enhances labor productivity and income among rural smallholders, suggesting that targeted support (training, subsidies) for such technology can significantly improve farmer welfare and agricultural efficiency in Indonesia..

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Journal
Jurnal Ekonomi Teknologi dan Bisnis (JETBIS)
Published
2025-08-25
DOI
https://doi.org/10.57185/jetbis.v4i8.190
Primary Topic
Agricultural Research and Practices
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article
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article

Analysis of The Impact of Tractor Technology Use on Time Efficiency, Rice Production Costs, and Farmers' Welfare in Cangkring Village, Plered District, Cirebon Regency

Ahad Madani, Dwi Purnomo, Salma Nurul Dzakiyyati Nabilah
Jurnal Ekonomi Teknologi dan Bisnis (JETBIS)
Agricultural Research and Practices
article

Analysis of The Impact of Tractor Technology Use on Time Efficiency, Rice Production Costs, and Farmers' Welfare in Cangkring Village, Plered District, Cirebon Regency

Ahad Madani, Dwi Purnomo, Salma Nurul Dzakiyyati Nabilah
article en

Abstract

Mechanized two-wheel tractors have become increasingly important for improving smallholder rice farming efficiency in Indonesia.This research analyzes the impact of introducing tractor-based tillage on labor time, production costs, and farmer welfare in Cangkring Village, Plered, Cirebon.A quantitative survey of 60 rice farmers was conducted, measuring farm budgets and using SEM-PLS modeling to link tractor adoption to efficiency and income outcomes.Results show average paddy yields of 7,000 kg/ha at IDR 6,500/kg, giving gross revenue ~IDR 45.5 million/ha.Total production cost averaged about IDR 20.635 million/ha (Rp17.97Mfixed and Rp2.67M variable), yielding a net profit of IDR 24.865 million/ha (R/C2.2).The cost of mechanized operations (hand tractor plowing plus power-threshing) was relatively low (~IDR 1.39 million/ha).SEM-PLS analysis confirms that tractor use significantly improved field efficiency (path 0.36, p=0.001) and reduced unit production costs (0.58,p<0.001).Both greater time efficiency (0.45,p<0.001) and lower costs (0.22,p=0.034) had significant positive effects on farmer welfare, and tractor use also had a significant direct positive effect on welfare (p=0.025).Mediation tests revealed strong indirect effects of mechanization on welfare via efficiency and cost savings (indirect 0.806 and 0.804, p<0.001 each).These findings indicate that small-scale tractor mechanization substantially boosts productivity and profitability for Indonesian rice farmers.In conclusion, adopting tractor-based mechanization greatly enhances labor productivity and income among rural smallholders, suggesting that targeted support (training, subsidies) for such technology can significantly improve farmer welfare and agricultural efficiency in Indonesia..

Jurnal Ekonomi Teknologi dan Bisnis (JETBIS)Vol. 4(8)
Universitas Swadaya Gunung Jati (ID)
Zero hunger
Openalex Percentile: Top 66%
Agricultural Research and Practices
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Analysis of The Impact of Tractor Technology Use on Time Efficiency, Rice Production Costs, and Farmers' Welfare in Cangkring Village, Plered District, Cirebon Regency — Ahad Madani, Dwi Purnomo, et al. · Jurnal Ekonomi Teknologi dan Bisnis (JETBIS) (2025) | TGRS Research Map | TGRS