The analysis of supply response of rice: Indonesian context (Jambi province)

Farmers' supply responsiveness and input demand planting wet rice in Jambi Province were estimated using profit function analysis. The objective of study is to analyse wet rice farmers' supply response. Research was conducted in Jambi Province in the year of 2010. Result showed that farmers do maximise their profit in short term and response to price changing efficiently. Changing in real wages was estimated to have a greater impact on rice profit and supplies than changes in the real prices of mechanised land preparation, fertilizer or pesticides. Wet rice supply elasticity considering their price was closed to one