THE ANALYSIS OF SUPPLY RESPONSE OF RICE UNDER RISK IN JAMBI PROVINCE

Farmers’ supply responsiveness planting rice in Jambi Province was estimated using Meta- Profit analysis function. The objective of study is to analyze rice farmers’ supply response. Research was conducted in Jambi Province in the year of 2010. Result showed that farmers’ profit planting rice increased because its price increased. Furthermore, its share decreased when its labour wage increased. This implied to farmers to plant rice because rice was relatively more profitable than other plants. The result showed that farmers tended to pushed risk in planting decision. As expected that irrigation index was also the important significant factor. Following it found that its profit planting rice increased in wet season. This results were consistent with the fact that the water availability was important factor to plant rice. The consistency of previous result, it found that profit to plant rice was the positive determination with irrigation index. This implied that government policy in agriculture had positive impact on technological adoption. The analysis production function suggested that labour and fertilizer elasticities higher than zero significantly. Production rice elasticity by considering the number of labour used was a little bit lower than fertilizer. As expected, it found that rice production elasticity by considering irrigation index was bigger than zero significantly