Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java

Transaction costs was one of imperfect market characteristic. The transaction costs of soybean farming affected profit level, and profit was one factor of capital formation. This research aimed to analyze the structure and the effect of transaction costs on the profitability and the capital formatio...

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Autores principales:	Hardiyanti Sultan, Dwi Rachmina, Anna Fariyanti
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2021
Materias:	capital formation, profit farming, transaction costs Agriculture S Agriculture (General) S1-972 Business HF5001-6182
Acceso en línea:	https://doaj.org/article/08d2469a78bd4efca27669b3a7fdef63
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spelling	oai:doaj.org-article:08d2469a78bd4efca27669b3a7fdef632021-12-02T15:32:30ZEffect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java2407-814X2527-923810.18196/agraris.v7i1.4427https://doaj.org/article/08d2469a78bd4efca27669b3a7fdef632021-06-01T00:00:00Zhttps://journal.umy.ac.id/index.php/ag/article/view/4427https://doaj.org/toc/2407-814Xhttps://doaj.org/toc/2527-9238Transaction costs was one of imperfect market characteristic. The transaction costs of soybean farming affected profit level, and profit was one factor of capital formation. This research aimed to analyze the structure and the effect of transaction costs on the profitability and the capital formation of soybean farming. This study applied transaction cost analysis and simultaneous equation as the methods. The respondents were determined using simple random sampling by taking the proportion of 25% for the three selected districts, resulting in 120 respondents. The data were the transaction costs in 2014/2015 and household data from 2012 to 2014, comprising the assets of land, vehicles, farm equipment, crop, and livestock. The results revealed that the transaction costs were IDR 144,120.86. The negotiation costs became the highest cost component (60.30%), followed by information costs (14.07%), coordination costs (12.22%), implementation costs (8.03%), monitoring costs (4.23%) and risk costs (1.15%). Transaction costs had a significant effect on the profitability of soybean farming. The highest percentage of capital formation on soybean farming was for farmland, reaching 40.43%. Other capitals included vehicles (24.59%), plants (19.31%), building (7.37%), and supporting tools (3.09%). Transaction costs did not significantly effect on farming capital formation. As a recommendation, collective action was required, farmers should be active on farmers groups to reduce transaction costs.Hardiyanti SultanDwi RachminaAnna FariyantiUniversitas Muhammadiyah Yogyakartaarticlecapital formation, profit farming, transaction costsAgricultureSAgriculture (General)S1-972BusinessHF5001-6182ENAgraris: Journal of Agribusiness and Rural Development Research, Vol 7, Iss 1, Pp 111-126 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	capital formation, profit farming, transaction costs Agriculture S Agriculture (General) S1-972 Business HF5001-6182
spellingShingle	capital formation, profit farming, transaction costs Agriculture S Agriculture (General) S1-972 Business HF5001-6182 Hardiyanti Sultan Dwi Rachmina Anna Fariyanti Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java
description	Transaction costs was one of imperfect market characteristic. The transaction costs of soybean farming affected profit level, and profit was one factor of capital formation. This research aimed to analyze the structure and the effect of transaction costs on the profitability and the capital formation of soybean farming. This study applied transaction cost analysis and simultaneous equation as the methods. The respondents were determined using simple random sampling by taking the proportion of 25% for the three selected districts, resulting in 120 respondents. The data were the transaction costs in 2014/2015 and household data from 2012 to 2014, comprising the assets of land, vehicles, farm equipment, crop, and livestock. The results revealed that the transaction costs were IDR 144,120.86. The negotiation costs became the highest cost component (60.30%), followed by information costs (14.07%), coordination costs (12.22%), implementation costs (8.03%), monitoring costs (4.23%) and risk costs (1.15%). Transaction costs had a significant effect on the profitability of soybean farming. The highest percentage of capital formation on soybean farming was for farmland, reaching 40.43%. Other capitals included vehicles (24.59%), plants (19.31%), building (7.37%), and supporting tools (3.09%). Transaction costs did not significantly effect on farming capital formation. As a recommendation, collective action was required, farmers should be active on farmers groups to reduce transaction costs.
format	article
author	Hardiyanti Sultan Dwi Rachmina Anna Fariyanti
author_facet	Hardiyanti Sultan Dwi Rachmina Anna Fariyanti
author_sort	Hardiyanti Sultan
title	Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java
title_short	Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java
title_full	Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java
title_fullStr	Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java
title_full_unstemmed	Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java
title_sort	effect of transaction costs on profit and the capital formation of soybean farming in lamongan regency, east java
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2021
url	https://doaj.org/article/08d2469a78bd4efca27669b3a7fdef63
work_keys_str_mv	AT hardiyantisultan effectoftransactioncostsonprofitandthecapitalformationofsoybeanfarminginlamonganregencyeastjava AT dwirachmina effectoftransactioncostsonprofitandthecapitalformationofsoybeanfarminginlamonganregencyeastjava AT annafariyanti effectoftransactioncostsonprofitandthecapitalformationofsoybeanfarminginlamonganregencyeastjava
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Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java

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