Current issue
No 1/2024, March

Rural ICT Penetration, Bank Credit, and Agricultural Sector Performance: A Panel ARDL Analysis in Eastern Indonesia


The relationship between ICT, the financial sector, and output growth has been extensively studied, however, macro-economic studies with an emphasis on the role of rural ICT on agricultural performance are few and yield mixed findings. Additionally, past research has not given sufficient attention to how bank credit affects agricultural performance. This paper highlighted the dynamic effect of rural ICT penetration and bank credit on agricultural performance in Eastern Indonesia. We used secondary data taken from the Central Bureau of Statistics and the Financial Services Authority. The panel data covered 16 provinces of eastern Indonesia from the first semester of 2010 to the second semester of 2022 (2010S1–2022S2). Using the panel autoregressive distributed lag (ARDL) approach, the results showed that in the long run, rural ICT penetration and bank credit played a significant role in boosting agricultural performance. However, in the short run, the impact of rural ICT penetration and bank credit on agricultural performance was statistically insignificant. Finally, we recommended several important policies that can practically impact and contribute to improving agricultural performance.

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Developing a Functional User Interface for VR Simulations within Agricultural Equipment Contexts


This study investigates the optimization of VR simulation interfaces for agricultural machinery, emphasizing the critical role of skill development and targeted education in enhancing agricultural efficiency. By utilizing eye-tracking technology, the research evaluates user experience (UX) across two menu designs - panel and radial -in VR settings. Results highlight the significance of intuitive menu design in facilitating user navigation and information access, with the panel menu outperforming the radial menu in usability. Despite some preferences for the radial menu's features, the panel menu is favored for its user-friendly design and ease of access, particularly in agricultural simulations. The findings suggest that effective VR interface design, supported by focused training, can significantly improve operational efficiency in agriculture.

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Are Organic Farms Less Efficient? The Case of Estonian Dairy Farms


The paper investigates the technical efficiency of conventional and organic dairy farms in Estonia in the period 2006‒2015 using Farm Accountancy Data Network. We analyse self-selection into organic farming using the propensity-score-matching approach and explicitly test the hypothesis that organic and conventional farms apply homogeneous technology. We find that organic farms are less efficient. However, the difference in technical efficiency between organic and conventional farms decreases substantially when the technical efficiency assessment incorporates the use of the appropriate technology. The lack of growth of technical efficiency over time indicates that there might be a lack of knowledge in organic milk production that hinders its development. Since technical efficiency increases with farm size, it is important that organic dairy farms increase their scale.

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Aid, Domestic Governance, and Agricultural Growth in Developing Countries


This study departed from other agricultural aid-growth studies by measuring growth as the annual growth rate of agricultural value added and accounting for the moderating role of governance on the aid-growth effect. Using data on a panel of 117 developing countries from 1996 to 2020, aid negatively influenced agricultural growth. Governance had a negative but insignificant independent effect on growth. However, the interaction of governance with aid turned the aid-growth effect from a significant negative to a statistically insignificantly positive effect. Since the low level of governance produced the positive interaction effect, of the aid-growth relationship, escalation of (good) governance could produce a strong effect.

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A Crude Palm Oil Industry Concentration and Influencing Factors: A Case Study of Indonesia as the World's Largest Producer


The Crude Palm Oil (CPO) industry is one of the plantation commodities that has a strategic role in Indonesia's economic development. The number of companies and CPO production is always increasing, but the concentration of the industry that always decreases every year makes it important to analyze the factors that affect the concentration of the CPO industry in Indonesia. The data period used in this study was from 2001 to 2020. In this study, data sources were obtained from the Central Bureau of Statistics (BPS) Indonesia, Word Bank, and UN Comtrade. The data analysis method used is regression analysis of the Error Correction Model (ECM). The results showed that technical efficiency has a negative and significant relationship both in the long and short term to the concentration of the CPO industry. Competitiveness in the long term has a positive and significant relationship, while in the short term it is negative but not significant to the concentration of the Indonesian CPO industry. In the long run, the relationship between RSPO and Indonesia's CPO industry concentration tends to be negative but not significant, while in the short term it shows a significant influence. World CPO prices, both long-term and short-term, provide a positive and significant correlation to the concentration of the Indonesian CPO Industry. Indonesia's CPO exports in the long and short term have a negative and significant effect on the concentration of the Indonesian CPO industry.

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The Use of Products with a Monitoring System for Remote Bee Detection in Beekeeping in Czechia


The use of modern technology is becoming part of both industry and agriculture. These technologies can also be used in beekeeping, where they can help to monitor the operation of the hive remotely. Beekeepers can remotely monitor the weight of their hives, their temperature, humidity, and other parameters. The aim of this paper is to map the beekeepers in the use of products with monitoring system for remote bee detection in beekeeping in Czechia. To map the issue, qualitative research using semi-structured interviews was conducted with beekeepers, manufacturers/providers of smart devices in beekeeping, and other entities involved in beekeeping. The findings showed that the interest of manufacturers and sellers to offer these smart devices is significant, but the interest of beekeepers is rather less, due to e.g., the purchase price, weaker IT knowledge, traditional beekeeping practices, higher age of beekeepers and the joy of being personally with bees. The novelty of the paper is not to look at the provision of ICT in beekeeping from a technical perspective, but from the perspective of users (beekeepers) and manufacturers of these technologies. Through interviews with beekeepers as well as others in the apiculture sphere, a comprehensive view of the issue is developed. Moreover, this is the first piece of research on this area in Czechia.

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The Impact of Information and Communication Technology (ICT) on Pesticides Use of Potato Farmers in Indonesia


Reducing pesticides is an important driver in preserving a healthy and sustainable environment and protecting human health. In the digital era, understanding the role of information and communication technology (ICT) on pesticide use in crucial. Therefore, This study aim to estimate the impact of ICT on farmers’ pesticide used. This study uses a cross-sectional data from a survey to 150 farmers in Indonesia. Furthermore, the data is analyzed by ordinary least square (OLS) and instrumental variable quantile regression (IVQR). The main results indicate that ICT has an essential impact on pesticide used reduction. Farmers who has access on the ICT tend to use lower pesticide that the farmers who did not use the ICT. The IVQR results, make the claim more robust, which is show a negative and significant impact of ICT on farmers pesticide use in all quartile groups. Therefore, this finding implies that there is a need to develop agriculture related ICT continuously among smallholder farmers to reduce the pesticide use.

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Multivariate Analysis of Food Security and Its Driving Factors


The main objective of the presented paper was the analysis of the current state of food security in the world, segmentation of 100 selected countries and determination of its main driving factors. The analysis used 27 indicators covering 5 basic areas: agricultural production, poverty, demography, economic development, and environmental indicators. The analysis was based on data from the FAO and World Bank for the most recent available period, which was year 2020. The data dimension was reduced with the application of factor analysis, and the main driving factors of food sufficiency were determined. The result was 6 factors: technological development, economic development, agricultural production, environmental factor, and physical quality of life and environment. To group similar countries in terms of selected indicators, a cluster analysis was performed, whereby countries were grouped by similarity into three clusters. The 1st cluster consisted of the most economically developed countries, where only 2.54% of the population suffers from malnutrition. The countries in this cluster were characterized by high levels of economic development, high caloric intake of the population, and high, life expectancy. On the other hand, they recorded negative development in demographic indicators such as fertility and birth rates. The 2nd cluster included the poorest areas of the African continent, which were most endangered by direct food insufficiency (23.74% of the population). In contrast to the first cluster, these countries were characterized by low levels of economic development, high prices, and low-calorie intakes of the population, as well as low life expectancy, while on the other hand, these countries had high fertility and birth rates. The third largest cluster consisted of countries with a medium threat of food insufficiency, where 6.37% of the population suffers from malnutrition. The countries in the third cluster excelled in terms of crop and livestock production volumes, but in contrast to this, they achieved lower levels of fat, protein, and calorie intake of population.

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The Relationship Between Agricultural Holdings and Municipalities


The aim of the paper is to assess the differences in opinions on relation of agricultural holdings (agri-holdings) and the municipalities. Whether the relationship rating depended on the intensity of cooperation in particular area (social life, public benefit activities, ecological activities and strategic planning) was tested. The relationship was rated positively in majority of cases which helped to create social capital in the locality. Strong influence on it had sponsorship of the fire brigade (from point of view of agri-holdings). From the standpoint of municipalities, almost all activities were important. Better promotion of agri-holdings’ activities in all areas can be suggested as not all actions of agri-holdings were known to the representants of the municipality. Negative relationship was mainly due to the agri-holding damaging the environment. Hence, responsible behaviour is an important for the agri-holding reputation. The paper was supported by the Ministry of Agriculture (MZE-RO0922), Internal Research Project of IAEI no. 1117/2023.

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Optimizing IoT Data Aggregation: Hybrid Firefly-Artificial Bee Colony Algorithm for Enhanced Efficiency in Agriculture


The data aggregation process in this study has been enhanced by the hybrid firefly-artificial bee colony algorithm (HFABC) by increasing the average packet delivery ratio, end-to-end delay, and lifespan computation. In this study, HFABC and Multi Hop LEACH are two algorithms that are used to aggregate IoT data. Their performance is compared using evaluation criteria including average End-to-End Delay, PDR, and network lifetime. The HFABC method reduces average End-to-End Delay more effectively than Multi Hop LEACH, with gains of 2.20 to 8.66 %. This demonstrates how well it works to reduce the lag times for data transfer in IoT networks. With improvements ranging from 3.45% to 45.39%, HFABC has a greater success rate than Multi Hop LEACH in effectively delivering packets. HFABC increases network lifetime by 0.047 to 2.286 percent, indicating that it helps keep IoT networks operating for longer. For effective data aggregation in IoT networks, HFABC is a superior solution that decreases delays, improves packet delivery, and lengthens network lifetime.

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