Economic Analysis of Tillage for Corn and Soybean Rotations with Government Commodity Programs

Abstract

Conventional tillage and no‐tillage are compared for three northeastern Kansas crop rotations: continuous corn ( Zea mays L.), continuous soybean [ Glycine max (L.) Merr.], and a corn‐soybean rotation. Risk analysis reveals that a no‐till corn‐soybean system and a conventional continuous soybean system are generally preferred. The no‐till corn‐soybean system has the highest average corn yields and the highest average net returns. Risk‐averse managers are indifferent between this system and the conventional tillage continuous soybean system. This system has the lowest relative income variation and fewer years with negative returns than the no‐till corn‐soybean system. Participation in the government commodity program for corn decreases variation in net returns, but also lowers average net returns. If government commodity program participation is essential, then the no‐till corn‐soybean system is the only preferred system. These results indicate that the government commodity program encourages soil conservation practices using no tillage in this area.