Technical Efficiency of Khao Dawk Mali 105 Rice Variety in Chiang Mai Province

International Journal of Advanced Science and Technology Vol. 29, No.9s, (2020), pp.4498-4507 Technical Efficiency of Khao Dawk Mali 105 Rice Variety in Chiang Mai Province

Wongchai Anupong Department of Agricultural Economy and Development, Faculty of Agriculture, Chiang Mai University, Thailand

Abstract This research aimed to measure technical efficiency and to analyze factors affecting the technical inefficiency of rice production from Khao Dawk Mali 105 variety in Chiang Mai Province .An in-depth interview was conducted in this study using quota sampling, a total of 11 Districts in Chiang Mai Province .A Stochastic Frontier Analysis was theoretically applied to measure the technical efficiency’s score with the Maximum Likelihood Estimation( MLE )method .Finally, an Ordinary Least Square (OLS )was theoretically employed to analyze factors affecting the technical inefficiency of rice production in Chiang Mai Province. The technical efficiency’s score of Khao Dawk Mali 105 rice variety was a low level at an average level of 0.664 (66.40 )which can more increase by 33.60 .%The highest technical efficiency score was about 0.978( 97.80)%, while the lowest technical efficiency score was about 0.022( 2.20 .)%The factors that showed a different significant level towards technical inefficiency are cultivation technologies, drought conditions, and government policy .These three variables had a positive relationship which contrasts with the basic assumptions . Furthermore, the other three factors, including farmers ’training, farming experience, as well as research and development had an insignificant level, implying these three insignificant factors were unable to describe the technical inefficiency of rice production in Chiang Mai Province .Therefore, the technical efficiency’s score of rice production from Khao Dawk Mali 105 rice variety can be more increased by improving the cultivation technologies, drought conditions, and government policy. Keywords :Chiang Mai Province, Khao Dawk Mali 105 Variety, Rice Production, Technical Efficiency, Stochastic Frontier Analysis

INTRODUCTION Rice is one of the most important economic crops in the world, especially in Asia. Due to the environment that is suitable for production and population, rice consumption is ubiquitous .Most rice production and consumption are located in Asia, with Thailand being the world’s major rice producer and exporter .Due to the rapid population growth in Asia, Thailand has supported rice production to meet domestic demand and still expansively exports rice to overseas .As a result, the world rice trade increases from 36.48 million tons in the crop year 2010/11 to 46 million tons in the crop year 2014/15, accounting for three percent per year( .Office of Agricultural Economics, 2015) The northern region is an important area for rice cultivation because most farmers have cultivated rice for household consumption and also produce rice products cultivated in the country .Therefore, rice cultivation is the main occupation that generates farmer’s incomes living in the northern region which has 17 major rice cultivated areas, namely Chiang Rai, Phayao, Lamphun, Lampang, Chiang Mai, Mae Hong Son, Kamphaeng Phet, Sukhothai, Nan, Uttaradit, Phitsanulok, Phichit, Nakhon Sawan, Uthai Thani, and Phetchabun, accounting for two percent of the country’s total rice cultivation area, followed by the Northeastern region which makes up 75percent based on statistical data from Office of Agricultural Economics in the year 2015 .The harvesting farmland and major rice production in the northern region have continuously expanded from 2002until 2002 as shown in Table 0. The major popular rice variety in the northern region is Khao Dawk Mali 105 rice variety, the special characteristic of which provides fragrant and soft rice when cooked .The Khao Dawk Mali 007 rice variety is developed from the native rice varieties, derived from farmers in Bang Khla District, Chachoengsao Province through the pure breeding process .The Khao Dawk Mali 105 rice variety which has special characteristics meets the needs of the market .Therefore, the Thai government has highly supported and promoted the propagation of Khao Dawk Mali 007 rice variety, starting from 25th May, 1959 onwards (Wisitchawong, 2003 .)Given the agricultural area of the northern region in which has an irrigation system to handle a large amount of rainwater

International Journal of Advanced Science and Technology Vol. 29, No.9s, (2020), pp.4498-4507 and most farmers prefer to grow rice in large plots, cultivation of Khao Dawk Mali 007 rice variety is most suitable .Also, there are other areas in Thailand where are appropriately irrigated, including the central provinces; Nakhonsawan Province, Ayutthaya Province, Phichit Province, as well as the northern provinces; Ubonratchathani Province, Udonthani Province, Nong Bua Lam Phu Province, and Loei Province. Table 1 :The statistics of rice production in the northern region, including planted area, harvested area, and productivity from 2009 to 2014

Year Planted Area (ha) Harvested Area (ha) Productivity (tons) 2009 2,038,452 1,909,120 6,556,307 2010 2,293,119 2,144,614 7,315,131 2011 2,424,693 1,952,214 7,121,027 2012 2,388,413 2,347,751 8,744,836 2013 2,347,792 2,296,456 8,637,165 2014 2,328,821 2,285,184 8,624,408 Source :Office of Agricultural Economics (2016) Most of the farmers in Chiang Mai Province preferred to grow Khao Dawk Mali 105 rice variety to meet the demand of the local market .In addition to household consumption, most local people in the northern region prefer to eat sticky rice .However, there are some local people who prefer to cultivate Khao Dawk Mali 105 rice variety for trading in both the domestic and international markets. The cultivation is in the main District of Chiang Mai Province that has a large rice field’s appropriate irrigation system, namely Mae Rim District, Mae Taeng District, Chiang Dao District, Fang District, Mae Ai District, San Sai District, Phrao District, Doi Saket District San Kamphaeng District, Hang Dong District, and Mae Chaem District .The most cultivated area of Khao Dawk Mali 105 rice variety is in Phrao District where the research of the Phrao model’s project of the Faculty of Agriculture, Chiang Mai University, was successfully carried out. Therefore, this research aims (1 )to study the basic information of the rice farmers who grow Khao Dawk Mali 105 rice variety as the main crop in Chiang Mai Province; (2 )to measure the technical efficiency of rice production from Khao Dawk Mali 105 rice variety employing a Stochastic Frontier Analysis with Maximum Likelihood Estimation; ( 3 )to analyze the factors affecting the technical inefficiency of rice production from Khao Dawk Mali 105 rice variety in Chiang Mai Province using an Ordinary Least Square (OLS.) LITERATURE REVIEW Relevant researches have mainly emphasized two aspects, focusing on a technical efficiency measurement that applies Stochastic Frontier Analysis (SFA )in diverse fields, together with a study on rice production efficiency in many areas .In terms of the technical efficiency measurement using SFA’s method, Coelli et al( .1999) studied the influence of environmental variables based on SFA of 32 national airlines in the Asia-Oceania, Europe, and North America regions .The study found that environmental variables were important in estimating and unable to ignore by adding environmental variables in both production equations and performance equations .Coelli et al . (2005) applied the SFA’s method to assess environmental efficiency .They stated that productive factors and the production caused by the environment can be considered as variables in the equation .The environmental variables can be used in both production equations and performance equations which are important in the decision-making process. Likewise, Ueasin et al( .2007) studied the technical efficiency of rice husk which is used to produce electricity in Thailand .Their research’s objective was to measure the technical efficiency of power production from rice husks .The secondary data used in the study was collected from The Energy Policy Office in Thailand in 2002, a total of 57 biomass power plants .The empirical results showed that the SFA model has a higher technical efficiency score of 0.755, followed by CRS-DEA (0.720) and the VRS-DEA (0.522), respectively .Ghosh and Kathuris (2016) investigated the impact of institutional quality on the performance of thermal power plants in India. This research applied a translog stochastic frontier model to estimate the technical efficiency of 77 coal- based thermal power plants. The findings revealed that the average technical efficiency’s score was 76.7%, pointing out that there is a broad scope for efficiency improvements in each sector. Moreover, the results had a

International Journal of Advanced Science and Technology Vol. 29, No.9s, (2020), pp.4498-4507 powerful towards a diverse specified model and represented that state-level regulators provide a positive impact on power sector performance. Besides, Alshammari et al( .2019 )studied the impact of oil prices and the financial market on cost efficiency in the insurance and Takaful sectors in the Gulf Cooperation Council’s (GCC) insurance industry. This research mainly applied a stochastic frontier cost function with data from 2009–2016. Their results revealed that the relationship between technical efficiency and oil prices goes from positive to negative when the oil prices are increased. However, the relationship between technical efficiency and the financial market showed negatively. Therefore, no clear evidence of the oil price’s impacts was empirically found between conventional insurance and Takaful sectors. Finally, Boyd and Lee (2019) analyzed the electric and fuel energy efficiency for five different metal-based durable manufacturing industries in the United States. This research collected the secondary data from 1987- 2012 from U.S. Economic Census at the three digits North American Industry Classification System (NAICS) level. A stochastic frontier regression analysis (SFA) was employed as the main research methodology. The findings depicted that the mean efficiency score was ranged from a low of 33% (fuel, NAICS 334-Computer, and Electronic Products) 86% (electricity, NAICS 332-Fabricated Metal Products). The results also showed that the studied units entering the industry are more efficient about 1.7% for fuels and 0.6% on average. Regarding the rice production efficiency, Battese and Coelli (1995 )used time-period variables in production equations and performance equations by studying the impact of the inefficiency of paddy rice farming in India from 1975/76 to 1984/85, the results of which showed that the use of cow labor resulted in reduced productivity . In terms of technical efficiency, the results found that young farmers were better able to do a rice farm than older farmers .Farmers with higher education levels could increase their technical efficiency. Madau( 2007 )studied the efficiency of organic cereal farming compared to that by the traditional method of Italy using the data in the production year 2000 and 2001. The result showed that the technical efficiency of traditional cereal farming was slightly higher .However, organic cereal farms offer higher returns .Both traditional and organic cereal farms have similar production factors .Based on the results of the study, the government has introduced horizontal organic farming to improve farmers’ ability and guarantee long-term technical performance to provide subsidies for rural farmers and other necessary measures. Likewise, Balcombe et al( .2008 )calculated the technical performance of 295 rice farms in Bangladesh by collecting data from late November to early December .The study indicated that farmers can also increase rice production by technical performance scores under the assumption that the output per size is not stable, accounting for 0.59 which means that it can increase by 41 percent without the need for additional inputs . Moreover, Taraka et al( .2010 )studied the paddy production in the central region of Thailand by assessing the efficiency of 400 rice farms in the production year 2009/10 .The results showed that the efficiency value is between 0.30 to 1.00 .However, the average technical efficiency score is 0.5186 (51.86 .)%Most farmers have very low technical efficiency .The demographic factors related to low efficiency are agricultural experience and the number of household members; however, factors that increase efficiency are the number of workers in the household. Mariano et al( .2011 )analyzed rice production efficiency at the farm level using data from three periods in 1996/97, 2001/02, and 2006/07 .The results showed the factors leading to an increase in productivity were basic production factors including cultivation area, seed quantity, pesticides, labor, machinery, access to chalk, seed quality level, and leadership of farmers .The factor that helped increase technical efficiency was the use of pesticides .The factor that causes technical performance to decrease was the cultivation of rice in the season. The results indicated that rice and farmers could adjust to different climates. In addition, Saensri et al( .2014 )studied the technical efficiency of Khao Dawk Mali 105 rice production in Roi Et Province .The cross-sectional data of 2012/13 crop year was used for the Roi-Et farmer who grew KDML 105 rice with broadcasting technique .Their results indicated that the farmers on soil group no .17 had a higher technique efficiency score than the farmer no . 22 by 6.01 percent .Its higher technical score revealed that the farmers on soil group no .17 utilized the productive factors more efficiently than the farmers on soil group no .22 significantly.

International Journal of Advanced Science and Technology Vol. 29, No.9s, (2020), pp.4498-4507

Tun and Kang (2015 )examined the factors affecting rice production efficiency in Myanmar with 195 farmers . Given the estimated efficiency level of these sample farmers, the estimate of the rice production’s efficiency was obtained, followed by the investigation of the determinant’s factors .The empirical evidence sheds light on the significant improvement of Myanmar rice production efficiency due to farm mechanical tools .Furthermore, Boubacar and Huiqiu (2016 )analyzed the efficiency of rice farms and influencing factors in the Southwest region of Niger by using 027 households .The results showed that farm size and land ownership directly affect the technical efficiency, while the rice-growing experience, number of household members, and membership of the main career cooperative have a direct impact on the technical performance in the negative aspects of utility use from the machinery. Kadiri et al( .2014 )studied the efficiency of paddy production in the Niger Delta area in Nigeria by collecting 300 samples .The finding found that the production factors; land, labor, household labor, covert labor, fertilizers, and chemical substances led to increased productivity .Regarding the efficiency factors, it was found that age and household size caused an increased efficiency .The factors that reduce efficiency are marital status, education, and farm size. Besides, Ataboh et al( .2014 )studied the factors that determine the technical performance of rice growers in Kogi State, Nigeria by collecting 300 sample sizes .The factors that increase productivity were labor plantation, fertilizer quantity, and seed quantity .The factors that increased efficiency significantly included household size, rice variety, and age of farmers .The findings indicated that an expansion of the production area, as well as an increase in seed quality and rice breeding, can highly increase the efficiency. Pedroso et al( .2018) also studied the technical efficiency of rice production in the Vu Gia Thu Bon, a basin area in the central region of Vietnam, by collecting 113 samples, the results of which showed that the capital-labor caused increased productivity and technical efficiency. The factors that increase efficiency were land and water pump use .Notably, the policies that expansion of the size of rice production showed that the invasion of salinity and irrigation management problems are factors influencing a very negative impact. Adaptive measures for water management in the watershed, including the introduction of salt-tolerant, rice varieties, were also recommended. Ali et al( .2019 )analyzed the technical efficiency of hybrid maize growers in the Khyber Pakhtunkhwa Province (KPK )of Pakistan .The direct elicitation method was used to analyze the primary data collected from 510 maize growers of KPK Province .The stochastic frontier analysis was theoretically used to investigate technical efficiency .The results revealed that the mean technical efficiency between the two groups differs at 10.2 percent .The results of technical inefficiency effect modeling revealed that education of the household head, family size, number of married family members, off-farm income, farming experience, tractor drill, water irrigation through a lined course, certified seed, extension services, household saving variables, and a credit size variable had positive effects on technical efficiency for both credit-constrained farmers (CCFs )and credit unconstrained farmers (UCCFs .)Additionally, the age of household head and fragmented land values had negative impacts on technical efficiency for both groups .However, the interest rate had positive and negative effects on the technical efficiency of CCFs and UCCFs, respectively .Accordingly, the major practical contribution of the study is that it provides much-needed data for policies on land use, interest rate, and banking sector expansion in the rural areas of Pakistan. Finally, Takahashi et al( .2019 )did research on technological innovation which is important for economic growth and food security in Sub-Saharan Africa .The research was conducted from 414 farmers or 275 households that are the members of agricultural cooperatives .The data used in the study were the producing method of all rice generated in the plot, income generation activities, and the holding of household property which is a short-term training. The training consisted of (1 )soil preparation and soil leveling which is important in reducing wastewater and to promote rice growth, (2 )water control and irrigation maintenance, (3 )seed selection, (4 )fertilizer and herbicides, (5 )transplanting in rows to facilitate other supplementary arrangements such as weeding, and (6 )the management during harvest and after harvest using ANCOVA method .The finding found that the information dissemination which has done by the farmers is very effective in improving agricultural practices as they receive basic training .Moreover, they could distribute effectively without any financial incentives given to trained farmers.

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Based on the above works of literature, most of the publications had the same concepts using SFA’s method to measure the technical efficiency of rice production. However, most of the previous researches have done in different areas. In conclusion, this research has theoretically applied rice yields of Khao Dawk Mali 105 rice variety as the output factor. Meanwhile, the input factors for this study consist of many cultivated areas, seed quantity, chemical fertilizer costs, herbicide costs, pesticide costs, number of household workers, and operating machines. RESEARCH METHODOLOGY A sample group is the farmers who grew Khao Dawk Mali 105 rice variety in Chiang Mai Province, consisting of 11 main districts .A quota sampling method based on the proportion of the population was used for the studied areas. Primary data is collected from questionnaires and interviews with the farmers who grow Khao Dawk Mali 105 rice variety .The questionnaire is divided into four parts .The first of three parts of the questionnaire is close- ended questions about general information of farmers, the information of agricultural activity such as group integration, and the services of the government in the past crop year .The final part of the questionnaire is an open-ended question about the additional suggestions of the farmers .Then, the collected data obtained from interviews with the farmers were theoretically processed and analyzed using the Frontier 4.1 program to estimate the production costs and technical efficiency level. For data collection in this research, there are two types of information as follow 1 .Primary data collected from the questionnaire of rice production from Khao Dawk Mali 105 rice variety in Chiang Mai Province, a total of 1,138 sample sizes. 2 .Secondary data obtained from the study of concepts, theories, documents, related research, as well as information that is related to the technical efficiency measurement by the SFA method, as well as various research related to the research on Khao Dawk Mali 105 rice variety. To analyze the collected data, the research model uses input and output variables to analyze the technical efficiency level of Khao Dawk Mali 105 rice variety. Inputs consist of several plantation areas( hectare), seed quantity( kg/ha), chemical fertilizer cost( Thb/ha), herbicide cost( Thb/ha), pesticide costs( Thb/ha), number of household workers (people )and mechanization (number.) The output is the number of rice yield of Khao Dawk Mali 105 rice variety (kg/ha .)Moreover, an Ordinary Least Square (OLS )is used to analyze the factors that affect the technical inefficiency of the rice production which consist of a dependent variable and an independent variable as following details: -The dependent variable is to employ the technical efficiency’s score of rice production from Khao Dawk Mali 105 rice variety derived from SFA’s method as stated in the second objective. -Independent variables include cultivation technologies, farmer’s training, farming experience, drought conditions, research and development, and government policies. The descriptive analysis was used to describe the data of inputs used and output used, consisting of minimum (Min), maximum (Max), average( Mean), standard deviation (SD) using excel program to prepare and process the collected data. Stochastic Frontier Analysis (SFA) with a Cobb-Douglas production function was theoretically used to determine the level of technical efficiency .The model can be converted as a linear programming function in the form of logarithm which easily estimates using the concept of Maximum Likelihood Estimation (MLE )in creating the Cobb-Douglas production function through the Frontier 4.1 program. DATA ANALYSIS The empirical results found that most of the farmers have an average age at 57 years old which is considered as the old generation. Although they have more experience in growing Khao Dawk Mali 105 rice variety, they are difficult to get new knowledge and training. The rice farmers possess their planted area less than 1.6

International Journal of Advanced Science and Technology Vol. 29, No.9s, (2020), pp.4498-4507 hectare/household, with an average of 1-2 primary labor for rice production .Besides, the average cost of rice production for Khao Dawk Mali 105 rice variety in Chiang Mai Province is about 7, 072Thb/hectare, considering as a very high agricultural cost for rice production as shown in Table 2. Table 2 :General information and production cost of agricultural households in Chiang Mai Number Planted Area Average Primary Agricultural of Land District Age Average Labor Cost Samples Ownership )year( )Ha/Household(

Mae Rim 50 59 1.33 <1.6 Ha 1-2 people 4,547 (80)% (100)% Mae Taeng 30 59 1.55 <1.6 Ha 1-2 people 5,186 (100)% (94)% Chiang Dao 30 57 1.38 <1.6 Ha 1-2 people 5,086 (100)% (84)% Fang 250 58 0.69 <1.6 Ha 1-2 people 4,802 (98)% (86)% Mae-ai 43 54 0.74 <1.6 Ha 3-4 people 5,854 (100)% (50)% Sansai 150 58 0.95 <1.6 Ha 1-2 people 5,355 (93))%% (97)% Phrao 435 56 1.77 <1.6 Ha 1-2 people 5,197 (69)% (90)% Doi Saket 60 59 0.59 <1.6 Ha 1-2 people 4,911 ( 97)% (93)% San Kamphaeng 30 62 1.01 <1.6 Ha 1-2 people 4,215 (76)% (62)% Hang Dong 30 56 1.48 <1.6 Ha 1-2 people 4,401 (63)% ( 93)% Mae Chaem 30 52 1.32 <1.6 Ha 1-2 people 6,042 (100)% (86)% Total 1,138 57 1.16 5,054

Source :Calculated The second objective can be achieved by measuring the technical efficiency of rice production from Khao Dawk Mali 105 rice variety in Chiang Mai Province .The technical efficiency of Khao Dawk Mali 105 rice variety was measured by the Stochastic Frontier Analysis( SFA) with the Cobb-Douglas production function .The technical efficiency level is classified into five groups .The first one is most farmers have a high technical efficiency level of rice production [0.901 -1.000] which is found in Mae Chaem District, having an average technical efficiency of 79.50 percent .Secondly, the farmer group that has a second-high technical efficiency level for rice production [0.701 -0.900] is found in Fang District with an average technical efficiency of 76.80 percent .Thirdly, f the highest possible level .Mae Taeng District has an average technical efficiency of 73.00 percent .Hang Dong District has an average technical efficiency of 71.80 percent and Mae Ai District has an average technical efficiency of 68.40 percent .The groups that most producers have a moderate technical efficiency level of planting[ 0.501 -0.700] are San Sai District with an average technical efficiency of 64.70 percent of the highest possible level of production .Phrao District has an average technical efficiency of 63.00 percent and Doi Saket District with an average technical efficiency of 58.10 percent .Most producers who have low technical efficiency levels of cultivation [0.301 -0.500] are found in San Kamphaeng District with an average technical efficiency of 56.00 percent of the highest possible output level .Overall, the results of the measurement of the technical efficiency of Khao Dawk Mali 105 rice variety in Chiang Mai Province have an average technical efficiency of 0.664 or 66.40 percent, which can be increased up to 33.60 from the highest possible yield level .Khao Dawk Mali 105 rice cultivation has the highest level of technical efficiency at 0.978 and has the lowest value of 0.022

International Journal of Advanced Science and Technology Vol. 29, No.9s, (2020), pp.4498-4507 with the standard deviation at 0.207 .This finding achieves objective three in analyzing the factors causing the ineffectiveness of Khao Dawk Mali 105 rice variety in Chiang Mai Province. 1 .The result of the production frontier The study of factors affecting the production frontier showed that the plantation areas can negatively cause the production frontier at a significant level of 99 percent .Besides, the factor of seed quantity can negatively cause the production frontier at a significant level of 95 percent as shown in Table 3. Table 3 :First-order parameters of the Cobb-Douglas production frontier Production Variables Coefficient Standard Error t - ratio Constant 6.977 0.219 31.860*** Plantation Areas )ha( - 0.038 0.013 - 2.915*** Seed Quantity )kg./ha( - 0.068 0.034 - 2.009** Chemical Fertilizer Cost )baht/ha( - 0.012 0.035 - 0.340ns Herbicide Cost )baht/ha( 0.001 0.002 0.500ns Pesticide Cost )baht/ha( 0.003 0.032 0.094ns Labor )manday/ha( - 0.004 0.005 - 0.887ns Machinery )hour/ha( 0.002 0.030 0.033ns Sigma - squared 0.024 1.000 0.024 Gamma 0.003 0.750 0.005 Source :Estimation Note*** :, **and *indicate significance at the 0, 7and 00% level, respectively. 2. The results of technical efficiency level Since the maximum technical efficiency level is at 1.000, the average technical efficiency of rice production from Khao Dawk Mali 105 rice variety in Chiang Mai Province is at an average level at 0.664 .The highest value is at 0.978, while the lowest value is at 0.022 .As for the distribution of the technical efficiency level of all 1,138 sample farmers, most of the farmers have the technical efficiency level at a high level [0.701-0.900 ]with 456 people( 40.07)%, followed by the middle level [0.501 -0.700 .]There are 348 people (30.58)% showing at the low level [0.301 -0.500 .]There are 137 people (12.04)% having a very high level [0.901 -1.000.] Furthermore, there are 106 people (9.31)% having a very low level [ 0.000 -0.300] and there are 91 people( 8.00 )%respectively as shown in Table 4. Table 4 :Technical efficiency level of Khao Dawk Mali 105 rice variety Technical Efficiency Level Frequency Percentage [0.000 -0.300] 91 8.00 [0.301 -0.500] 137 12.04 [0.501 -0.700] 348 30.58 [0.701 -0.900] 456 40.07 [0.901 -1.000] 106 9.31 Mean 0.664 Maximum 0.978 Minimum 0.022 Source :Estimation 3 .Analysis results of factors affecting technical inefficiency The factors that have a different significant impact on the technical efficiency consisted of three factors; cultivation technologies, drought conditions, and government policy as shown in Table 5 .Firstly, the factor of cultivation technologies showed a positive coefficient (0.0850) with the 99 percent significant level with the technical inefficiency, meaning that the higher number of cultivation technologies the farmers have, the more technical inefficiency on rice production from Khao Dawk Mali 105 rice variety in Chiang Mai Province .This

International Journal of Advanced Science and Technology Vol. 29, No.9s, (2020), pp.4498-4507 factor can be explained that the farmers are unable to use appropriate technology for rice production when they have many cultivation technologies, resulting in higher technical inefficiency significantly. Secondly, the factor of drought conditions showed a positive coefficient (0.0248 )towards the technical inefficiency with 90 percent significant level .Its result implies that the greater number of drought conditions the farmers face, the more technical inefficiency of rice production for Khao Dawk Mali 105 rice variety in Chiang Mai Province .The rice production prefers for the rainy season and more water from the irrigation system, unpreferable drought conditions. Lastly, the factor of government policy revealed a positive coefficient (0.0393 )with a 99 percent significant level towards technical efficiency .This factor implies that the greater number of government policies the farmers received, the higher in technical inefficiency of rice production from Khao Dawk Mali 105 rice variety in Chiang Mai Province .Since the unstable government policy and lace of continuity of current government policy will significantly result in the technical inefficiency. However, the other factors including the farmer’s training, farming experience, research, and development can be unable to describe the model significantly due to insignificant levels of the statistics. Table 5 :Factors affecting the technical inefficiency Independent Variable Coefficient Standard Error t - Statistic Constant 0.6621 0.0171 38.7172 Cultivation Technologies 0.0850 0.0233 3.6554*** Farmer’s Training 0.0001 0.0118 0.0085ns Farming Experience - 0.0169 0.0180 - 0.9379ns Drought Conditions 0.0248 0.0135 1.8338* Research and Development 0.0051 0.0178 0.2865ns Government Policy 0.0393 0.0151 2.6047*** Source :Estimation Note*** :, **and *indicate significance at the 1, 5, and 10 %level, respectively. CONCLUSIONS AND DISCUSSION This research consists of three main objectives .The first objective is to study the basic information of the rice farmers growing Khao Dawk Mali 105 rice variety in Chiang Mai Province .The second objective is to measure the technical efficiency of rice production from Khao Dawk Mali 105 rice variety .The third objective is to analyze what factors affecting the technical inefficiency of rice production from Khao Dawk Mali 105 rice variety in Chiang Mai Province. The primary data were collected from a questionnaire of rice production from Khao Dawk Mali 105 rice variety in 11 Districts of Chiang Mai Province .The sample sizes are 1,138 persons .The main approach used to evaluate the technical efficiency was the Stochastic Frontier Analysis (SFA )with the Cobb-Douglas production function . Besides, the Ordinary Least Square (OLS )was lastly utilized to analyze what factors affecting the technical inefficiency of rice production for Khao Dawk Mali 105 rice variety in Chiang Mai Province. The general information found that most of the farmers have an average age of 57 years old, considering as they are the elderly farmers living in remote areas .They are conservative and hard to accept new knowledge and training for increasing technical efficiency .They have their own planted farm less than 1.6 hectares/household . Most of them spend 1-2 primary labor in their household for rice farming .Furthermore, the agricultural cost is very high at 5,054 Thb/hectare. Since the best technical performance score level is at 0.000, the results of the technical efficiency analysis of the rice production from Khao Dawk Mali 007rice variety in Chiang Mai Province has an average of 0.662, showing a moderate efficiency score .Therefore, to increase technical efficiency to reach the highest value at 1.000, the rice farmers in Chiang Mai Province and the government sector should directly deal with the factors that show a significant level with the technical inefficiency; namely the cultivation technologies, drought conditions, and government policy.

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The Thai government is highly encouraged to support and promote cultivation technologies for appropriate utilization .This result is consistent with the previous research of Supkasem and Srisuwan( 2016), stating that most farmers have a high level of knowledge about rice production technology, but the proportion is much indifferent from the farmers who have a medium level of knowledge. Also, the results are quite similar to the research of the Ministry of Agriculture and Cooperatives (2016 )point out that the zoning integrated development of in industrial production model for rice modern technology can increase the technical efficiency and productivity of a natural risk insurance system. As a factor of drought conditions, the farming system should allocate sufficient water for the needs of rice .This is consistent with the research of Anugoolprasert( 2016) supporting that irrigation is reduced from the rate of 50 %of normal irrigation, resulting in reduced yield plant of rice .Also, the findings of Rang et al( .2011) found that drought conditions caused the number of endosperm cells and the production of amylose to decrease production efficiency. Regarding the significant factor of government policy, this factor is consistent with the research of Dai and Si (2008 )studying government policies and firms’ entrepreneurial orientation .They focused on the strategic choice and institutional perspectives .The empirical results pointed out how economic policies utilized by the central government to instruct the entrepreneurial orientation of Chinese private firms. It is suggested that future studies identify the exact values to gain more accurate information in the analysis. Since the farmers who grow Khao Dawk Mali 105 rice variety using chemicals in Chiang Mai Province turned to produce more organic products and reduce the cost of production from conventional production, there should be also a comparison study of the technical performance of Khao Dawk Mali 105 rice variety between using chemical and organic methods to plan the farmers’ decision for changing the productive method of Khao Dawk Mali 105 rice variety which uses organic chemicals to add high value. ACKNOWLEDGMENT This research was financially supported by the Agricultural Research Development Agency (Public Organization), Thailand, and Chiang Mai University. REFERENCES [1] Ali, I., Huo .X., Khan .I., Ali .H., Khan .B, and S .U .Khan .2019 .Technical Efficiency of Hybrid Maize Growers :A Stochastic Frontier Model Approach .Journal of Integrative Agriculture, Vol .18(10 :)2408- 2421. [2] Alshammari, A. A., Alhabshi, S. M., and B. Saiti. 2019. The Impact of Oil Prices and the Financial Market on Cost Efficiency in the Insurance and Takaful Sectors: Evidence from A Stochastic Frontier Analysis. Economic Systems, Vol. 43(3): 100716. [3] Anugoolprasert, O .2016 .Effect of Water Deficit Stress on the Growth and Yield Components of Six Aromatic Rice Cultivars .Thai Science and Technology Journal, Vol .24(3 :)443-455. [4] Ataboh, O .E., Umeh, J .C., and P .T .Tsue .2014 .Determinants of Technical Efficiency Among Rice Farmers in Kogi State, Nigeria .Journal of Agriculture and Sustainability, Vol .6(1 :)39-49. [5] Balcombe, K., Fraser, I., Latruffe, L., Rahman, M., and L .Smith .2008 .An Application of the DEA Double Bootstrap to Examine Sources of Efficiency in Bangladesh Rice Farming .Applied Economics, Vol .40(15 :) 1919-1925. [6] Battese, G .E., and T .J .Coelli .1995 .A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data .Empirical Economics, Vol .20(2 :)325-332. [7] Boubacar, O., and Z .Huiqiu .2016 .Technical Efficiency of Rice Farming in Southwestern Niger :A Stochastic Frontier Approach .Journal of Economics and Sustainable Development, Vol .7(24 :)58-65. [8] Boyd, G. A., and J. M. Lee. 2019. Measuring Plant Level Energy Efficiency and Technical Change in The U.S. Metal-Based Durable Manufacturing Sector Using Stochastic Frontier Analysis. Energy Economics, Vol. 81: 159-174. [9] Coelli, T .J., Perelman, S., and E .Romano .1999 .Accounting for Environmental Influences in Stochastic Frontier Model :With Application to International Airlines .Journal of Productivity Analysis, Vol .11(3 :) 251-273.

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