Credit Access and Technical Efficiency Among Laying Hen Farmers in Indonesia: A Propensity Score Matching Analysis

Eggs are a key source of animal protein for the Indonesian population, as they are relatively inexpensive and accessible even for low-income families. The stability of egg production is important for national food security. Access to credit is crucial for continuity in poultry production and can help farmers sustain their operations through efficient farm management. The study aims to examine the factors influencing farmers' decisions to access credit and to evaluate the estimated association between credit and technical efficiency using 2014 Livestock Farm Household Survey data, complemented by provincial producer-price statistics for May 2013–April 2014. Credit was positively associated with higher technical efficiency among laying-hen farms. Technical efficiency of credit recipients after propensity score matching was about 9.49 percentage points higher than that of matched non-recipients. Land ownership was the only statistically significant factor associated with farmers' access to credit. Furthermore, policy interventions should focus more on laying hen farms in the analytical sample by exploring additional collateral schemes and financial instruments, as well as offering incentives to improve their technical efficiency and productivity. These policy alternatives need to be analyzed further using more up-to-date, specific data.