This study reports an effect analysis of the increase in rice production using the empirical model of the translog cost function with panel data from the 2008-2012 period taking into account the recent change in production methods. The results of this study are as follows: Cost elasticities with respect to size factors were less than 1 across the farm sizes, indicating the existence of the scale economy in the rice industry. According to the estimates of average production costs, an increase in farm size leads to reduced average production costs. Specifically, cost reduction was 17.4% for the increase from 1ha to 2ha, 8.4% for the increase from 2ha to 3ha, and 7.1% for the increase from 3ha to 5ha. However, when farm size increases from 5ha to 7ha, such a cost reduction effect starts to disappear, as evidenced by the corresponding number of 2.3%.