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Agronomy Journal 93:1296-1304 (2001)
© 2001 American Society of Agronomy

PRODUCTION PAPER

Economic Analysis of Conservation and Conventional Tillage Cropping Systems on Clayey Soil in Eastern Arkansas

Lucas D. Parsch*,a, Terry C. Keislingb, Patricia A. Sauera, Lawrence R. Olivera and Nathan S. Crabtreea

a Dep. of Crops, Soil, and Environ. Sci., 115 Plant Sci. Bldg., Univ. of Arkansas, Fayetteville, AR 72701
b Dep. of Crops, Soil, and Environ. Sci., Univ. of Arkansas, Northeast Res. and Ext. Cent., P.O. Box 48, Keiser, AR 72351

* Corresponding author (lparsch{at}uark.edu)



    ABSTRACT
 TOP
 ABSTRACT
 INTRODUCTION
 MATERIALS AND METHODS
 RESULTS AND DISCUSSION
 INTERPRETIVE SUMMARY
 REFERENCES
 
Conservation tillage offers an alternative approach for managing clayey soils in the midsouthern United States. This study compared conservation tillage seedbed preparation vs. conventional tillage main plots with subplots of (i) nonirrigated soybean (Glycine max L. Merr.), (ii) irrigated soybean, (iii) irrigated grain sorghum (Sorghum vulgare L.), (iv) irrigated soybean followed by irrigated grain sorghum, (v) irrigated soybean followed by irrigated corn (Zea mays L.), and (vi) continuous irrigated cotton (Gossypium hirsutum L.) for the years 1986 to 1991 at Keiser, AR. Cropping practices were similar to those used by producers in the area. Grain sorghum yielded better in a soybean rotation than in monoculture and also in conventionally tilled seedbed than in conservation tillage. For other crops, yield did not differ significantly by tillage. Except for cotton, conventional tillage resulted in higher average net returns (NR) than conservation tillage. Although the most profitable system was continuous cotton with conservation tillage, NR varied widely across years, and there were fewer observations for cotton than for other systems in the study. Among conventional tillage seedbed preparation, nonirrigated continuous soybean was more profitable than any of the irrigated systems, including irrigated soybean. However, irrigated soybean resulted in NR that were less variable than nonirrigated soybean. The study confirmed the increased variable costs and decreased equipment costs that accompany conservation tillage systems. Even with the dramatic changes in burndown herbicide costs that have occurred since the study was conducted, the rankings of the cropping systems for profitability would not change.

Abbreviations: ACES, Arkansas Cooperative Extension Service • MSBG, Mississippi State Budget Generator • NR, net returns • TC, total costs • TFC, total fixed costs • TVC, total variable costs


    INTRODUCTION
 TOP
 ABSTRACT
 INTRODUCTION
 MATERIALS AND METHODS
 RESULTS AND DISCUSSION
 INTERPRETIVE SUMMARY
 REFERENCES
 
OVER THE PAST DECADE, use of conservation tillage by farmers in the USA has increased. Nationally, the percentage of area planted using conservation tillage increased from 5.1% in 1989 to 16.3% in 1998 (Conserv. Technol. Inf. Cent., 1999). During this same period, conservation tillage in the Mississippi embayment—including the Delta region of eastern Arkansas—has also increased from 2.4% in 1989 to 10.7% in 1998. This increase is attributed to the nonclodding properties of the difficult-to-manage clay soils that are found in this area. Improvements in no-till farm machinery have also assisted in the adoption of this practice by enabling later planting into drier, harder soils, and thus extending the planting period. This suggests that Midsouth producers—who adopted conservation tillage more slowly than their Midwest counterparts—have become less hesitant in using this technology. In contrast, a reversal of this trend may be occurring in some areas. In very recent years, the percentage of no-till area in Iowa, e.g., has shown a decrease from 20.4% in 1994 to 16.2% in 1998.

For a cropping practice to be sustainable, it must also be profitable. One factor that contributes to the profitability of a conservation tillage system is that crop yield must compare favorably to that of a conventional system. Yield differences between conservation tillage and conventional tillage were examined by Hairston et al. (1990), who compared yield of soybean using no-till and conventional tillage on three Mississippi soils. Yields were similar between tillage systems on sandy soils for all 3 yr of the study. However, on silt loam and clayey soils, yield under conventional tillage exceeded no-till performance during most years. This yield reduction on finer textured soils was also noted in earlier studies by Hairston et al. (1984) and Dick et al. (1986a)(b) in Ohio. In North Carolina, Wagger and Denton (1989) found that no-till increased the yield of corn and soybean on sandy loam soils over conventional tillage over a 3-yr period. Similarly, in the north-central Texas Panhandle, no-till increased soil water storage during fallow periods, resulting in increased grain sorghum yields in a dryland system compared with conventional tillage and furrow diking in a limited-irrigation dryland system (Wiese et al., 1998).

Crop rotation is also employed to increase production in a conservation tillage system. In a Louisiana study on silt loam soils, Dabney et al. (1988) reported that soybean following either grain sorghum or fallow resulted in higher yield than continuous soybean. In Minnesota, Crookston et al. (1991) found that corn yield was 10% higher and soybean yield 8% higher in a corn–soybean rotation compared with these same crops grown in monoculture on a clay loam soil. In a 4-yr study by Edwards et al. (1988), yield of no-till soybean grown in rotation with corn on Alabama sandy loam soils showed an increase over continuous soybean that was conventionally tilled. In Ontario (Canada), an increase in rotational corn yield over continuously grown corn was reported by Raimbault and Vyn (1991) on silt loam soils. First-year corn in rotation showed yield increases ranging from 4% more than continuous corn under conventional tillage to 8% more than continuous corn under minimum tillage. In second-year corn, minimal response was attributed to rotation. At three sites in Minnesota and Wisconsin, Porter et al. (1997) reported a yield increase of 13% for corn and 10% for soybean when grown in annual rotations with each other over continuous monoculture. Furthermore, Wesley et al. (1994) and Singer and Cox (1998) reported greater net returns (NR) from crops such as corn and soybean grown in rotations.

The ability of a conservation tillage system to perform economically is critical to its acceptance by producers. An Illinois study of corn and soybean systems by Siemens and Oschwald (1978) found total production costs of eight conventional and conservation tillage systems to be similar. Although pesticide costs were higher for conservation systems, machinery costs were higher under conventional tillage. Jolly et al. (1983) compared economic returns and risk of four tillage systems in central Iowa for a corn–soybean rotation. Using returns to land and management as a measure of economic performance, they found that lower residue systems—such as moldboard and chisel plow—were preferred on a short-run basis (1–2 yr). However, on a longer term basis (3–4 yr), which allowed for reallocation of labor and capital, high-residue systems, such as strip-till and ridge-till, could become competitive. When comparing costs and returns for corn and soybean in Indiana, Doster et al. (1983) found that no-till, along with other conservation tillage systems, compared favorably with conventional systems on well-drained sandy soils. However, on poorly drained clayey soils, the conventional systems were more profitable than no-till. In an analysis of production costs for four tillage systems, including conventional and no-till, Klemme (1982) compared the per-bushel cost of producing soybean and corn in Wisconsin. The study concluded that if equal yields could be produced by each tillage system, then the cost of production on a per-bushel basis was similar and conservation tillage is competitive with conventional tillage.

In a more recent economic analysis of tillage systems, Liu and Duffy (1996) used producer survey data from the Iowa MAX (Farming for Maximum Efficiency) program to compare the profitability of conservation tillage with that of conventional tillage systems. They reported that most conservation tillage systems that included either no-till, reduced-till, ridge-till, or mulch-till had higher profits than conventional tillage with plowing. They also comment that conservation tillage systems can provide economic and environmental benefits.

In contrast to Liu and Duffy (1996), Johnson (1994)— in a review of literature pertaining to no-till soybean production practices—directed attention to several economic studies that found no-till had the lowest machinery and fuel costs and labor requirements. However, herbicide and other variable costs increased enough to offset the machine, fuel, and labor savings of no-till, resulting in no-till being less profitable than other tillage systems. Johnson also addressed concerns over weed control and pesticide loss in surface water runoff when using no-till.

These studies demonstrate that when yield is the sole measure of performance, no-till may perform favorably compared with conventionally tilled crops under certain soil textures and conditions. When making economic comparisons, no-till may also compare favorably with conventional tillage, with added benefits when crops are grown in rotation. Moreover, when both yield and profit are measures of performance, no-till may compare favorably with conventional tillage under coarse-textured sandy soils, but it has also been shown that no-till crop yields may compare less favorably on finer textured soils. Pesticide use and weed control are added concerns when utilizing no-till.

Limited published information is available on crop yields and economic returns of soybean, grain sorghum, corn, and cotton rotations for conservation tillage and conventional seedbed preparation on clayey soils. This information would be useful for producers in the Delta region of eastern Arkansas and throughout the Midsouth region of the United States where these crops are frequently grown on clayey soils. The soil management and conservation advantages of using conservation tillage, coupled with economic profitability, would make this farming practice both beneficial and desirable. The objective of this study was to compare yields and estimate the profitability of six cropping systems, each grown under conservation and conventional tillage on clayey soils.


    MATERIALS AND METHODS
 TOP
 ABSTRACT
 INTRODUCTION
 MATERIALS AND METHODS
 RESULTS AND DISCUSSION
 INTERPRETIVE SUMMARY
 REFERENCES
 
Agronomic
Research was conducted from 1986 to 1991 at the Northeast Research and Extension Center located near Keiser in eastern Arkansas (Mississippi County) at 90°5' W and 35°45' N. The six cropping systems reported in this study (Table 1) consisted of four full-season field crops (soybean, grain sorghum, corn, and cotton) grown either in continuous monoculture or in a 2-yr rotation (soybean–grain sorghum and soybean–corn). Each cropping system was grown under both conservation and conventional tillage on Sharkey silty clay (very-fine, smectitic, thermic Chromic Epiaquerts) soil. Five of the six systems were irrigated using a lateral-move overhead sprinkler system. Supplemental irrigation water was applied to these plots according to the recommendation of the Arkansas Irrigation Scheduler program (Cahoon et al., 1990). By design, the sole nonirrigated system (monoculture soybean) was included in the study to evaluate a crop grown predominantly (59.3% of total area) under dryland conditions in Arkansas (AASS, 1999).


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Table 1. Cropping systems for the long-term tillage study, 1986–1991, Keiser, AR.

 
The experimental design was split-plot with four replications. The two tillage systems, conservation and conventional seedbed preparation, represent the main plots. Subplots for each of the crops were 7.6 m wide by 38.0 m long. To eliminate year bias, each crop, whether monoculture or 2-yr rotation, was planted in each of the 6 yr and identified as a treatment. Therefore, in the soybean–corn rotation, e.g., two treatments were recorded annually, one each for corn and soybean. Thus, there were eight treatments per main plot (four monoculture crops and four rotation crops), or 16 treatments for the entire project. This enabled each system to be evaluated on a yearly basis and allowed for annual comparisons among the six cropping systems.

The field operations used in the study are typical for eastern Arkansas, with slight deviation from year to year and crop to crop due to variable conditions in soil moisture, weed pressure, and weather. All preplant fertilizer was broadcast as a solid material, and all sidedress was applied as 32% N liquid using a cutting coulter. Agricultural practices not specified were commensurate with those normally used by producers in this region. Field records were kept for each treatment including the date on which each field operation was performed, the quantity of operating inputs applied, crop and weather conditions, quantity and timing of irrigation, and yield. Common names and chemical formulations of herbicides used in the study are found in Table 2.


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Table 2. Common names and chemical formulations of herbicides used in the long-term cropping system study, Keiser, AR, 1986–1991.

 
Conservation Tillage Seedbed
Tillage operations were not performed after harvest of the previous year's crop before spring planting of conservation tillage soybean, grain sorghum, or corn plots. Planting was accomplished using conventional planters adapted with no-till attachments. Subsequent to planting, burndown was achieved with either glyphosate applied at 1.12 kg a.i. ha-1 or paraquat at 0.56 kg a.i. ha-1 for these crops. Other pre-emergent herbicides applied included metolachlor at 2.24 kg a.i. ha-1 for soybean or at 1.68 kg a.i. ha-1 for grain sorghum and corn, imazaquin at 0.14 kg a.i. ha-1 for soybean, and atrazine at 2.24 kg a.i. ha-1 for grain sorghum and corn. In addition, acifluorfen was applied at 0.14 kg a.i. ha-1 as a postemergent on soybean plots. In contrast to soybean, grain sorghum, and corn, the conservation tillage cotton plots were prepared using a stale seedbed system. With this method, a raised bed is created with a disk bedder in fall or early winter followed by herbicide applications before planting. For cotton, the preplant burndown consisted of fluometuron applied at 2.24 kg a.i. ha-1 in addition to either glyphosate or paraquat applied at the rates given above.

Conventional Tillage Seedbed
Seedbed preparation for conventional tillage plots corresponded to typical practices in eastern Arkansas. These included a fall disking followed by either a spring disking or bed conditioning and a single cultivation after planting. For some producers, fall disking may be replaced by chisel plowing. However, moldboard plowing has disadvantages and was not used. Due to changing soil conditions or weed pressure, the number of tillage operations varied slightly from year to year and crop to crop for the conventional plots. Trifluralin (0.84 kg a.i. ha-1) and imazaquin (0.14 kg a.i. ha-1) were preplant-incorporated for soybean. On corn and grain sorghum plots, atrazine (2.24 kg a.i. ha-1) and metolachlor (1.68 kg a.i. ha-1) were applied pre-emerge. Metolachlor (2.24 kg a.i. ha-1) and fluometuron (2.24 kg a.i. ha-1) were applied to the cotton plots as pre-emergents. Raised beds for cotton were prepared using a stale seedbed system similar to those for conservation tillage cotton. In the conventional system, weeds are killed mechanically with a bed conditioner before planting cotton.

Soybean
‘Bedford’ was planted at a rate of 306280 seeds ha-1 during the 6-yr study on dates ranging from 11 May to 19 June. Row spacing was 0.97 m. Because soil test recommendations of the Arkansas Cooperative Extension Service (ACES) show no yield response to P and K on this soil, fertilizer was not applied to these plots. Soybean was harvested from the center of each plot on dates ranging from 7 October to 25 October, and the moisture level was adjusted to 13%.

Grain Sorghum
The cultivar Topaz was planted at a rate of 198000 seeds ha-1 on dates ranging from 18 April to 12 June. Row spacing was 0.97 m. Preplant fertilizer was broadcast at 84 and 56 kg ha-1 N and P, respectively, and 32% N liquid was sidedressed at 84 kg N ha-1. Grain sorghum was harvested from the center of each plot on dates ranging from 25 August to 22 October, and moisture level was adjusted to 14.5%.

Corn
‘McCurdy MSX 84’ was planted at a rate of 74100 seeds ha-1 on dates ranging from 18 April to 12 June. Row spacing was 0.97 m. Preplant fertilizer was broadcast at 112 and 56 kg ha-1 N and P, respectively, and 32% N liquid was sidedressed at 112 kg N ha-1. Corn was harvested from the center of each plot on dates ranging from 1 September to 5 October, and moisture level was adjusted to 14.5%.

Cotton
Before planting, a disk bedder was used to create raised beds in early winter. ‘Stoneville 506’ was planted at a rate of 135850 seeds ha-1 on dates ranging from 28 April to 12 June. Row spacing was 0.97 m. Preplant fertilizer was broadcast at 84 and 34 kg ha-1 N and P, respectively, and 32% N liquid was sidedressed at 84 kg N ha-1. First-picking cotton was harvested on dates ranging from 1 October to 26 October, followed by a second picking 10 to 14 d later.

Economic
To compare the profitability of the six systems under conservation tillage and conventional tillage, annual enterprise budgets were assembled based on field data collected over the 6-yr period of the study. An annual enterprise budget projects cost of production, gross revenue, and NR (Boehlje and Eidman, 1984) for a specified management alternative. All budgets were compiled with the Mississippi State Budget Generator (MSBG) using primary field data collected at the research site supplemented with estimates of prices and other technical coefficients where appropriate (Spurlock and Laughlin, 1987). Primary field data collected annually at the research site included (i) the treatment-level quantities of material inputs (fertilizer, seeds, chemicals, and irrigation) applied; (ii) treatment-level type, timing, and number of field operations performed; and (iii) replicate-level crop yield. Supplementary secondary data required for estimating cropping-system costs and returns included prices paid for inputs and materials, commodity prices received for crops produced, overhead and operating charges for machinery and irrigation equipment, and labor use. Because material input use and field operations were identical across plots, annual cost of production was estimated for each cropping system–tillage combination. By contrast, gross revenue and NR were computed for each replicate based on plot yield and commodity price received.

Input Costs and Output Prices
Annual enterprise budgets developed for each cropping system in the study employed input costs and output prices indexed to 1990 dollars and averaged over the period of the study. Prices paid for each of the material inputs used in the budgets (e.g., fertilizer, seeds, chemicals, and fuel) were taken from databases of 1986–1991 annual input prices maintained by ACES for preparing published crop enterprise budgets (ACES, 1986–1991). Each nominal input price was first indexed to 1990 dollars using the USDA index of prices paid by farmers (Agric. Stat. Board, 1992) and subsequently averaged over the 6-yr period. Correspondingly, crop output prices for commodities in the budgets were adapted from the 1986–1990 data series of prices received by Arkansas farmers (AASS, 1987–1991). Annual nominal prices for soybean, grain sorghum, cotton, and corn were first indexed to 1990 dollars using the index of prices received by Arkansas farmers (AASS, 1991) and then averaged. Indexed, averaged output prices used in computing gross revenue in the budgets were $0.229 kg-1 for soybean, $0.070 kg-1 for grain sorghum, $0.077 kg-1 for corn, and $1.208 kg-1 for cotton lint. Use of indexed, averaged prices for both inputs and outputs removes the effects of market volatility and inflation when estimating annual costs and returns over the study period.

Machinery and Irrigation Costs
Machinery operating (fuel, labor, repair, and maintenance) and overhead (depreciation and interest) costs were estimated using algorithms within MSBG and subsequently charged to each cropping system based on a representative eight-row machinery complement, which is commonly used in eastern Arkansas and included in crop budgets published by ACES (Windham et al., 1990). Equipment included 104 and 131 kW tractors, an eight-row combine for corn, 6.1-m grain head, two-row cotton picker, eight-row planter, 7.9-m disk, eight-row cultivator, 18.3-m high clearance sprayer, and a Do-All bed-conditioner with mounted sprayer boom. Machinery performance rates, annual hourly use, and lifetime hourly use of each machine were obtained from databases used in preparing ACES-published budgets (Windham et al., 1990). Custom charges were assessed for all fertilizer applications. Machinery labor use, fuel consumption, and machinery repair and maintenance charges were estimated within MSBG based on standards of the American Society of Agricultural Engineers (1987). Depreciation was computed for equipment using the straight line method, with prices reflecting replacement cost of the machinery complement in 1990 dollars. Finally, interest was charged at an annual rate of 11% on average capital invested (1990 replacement costs) in the machinery complement. Machinery operating and overhead costs were allocated to each crop budget based on the type and number of field operations performed for each cropping system.

Operating and overhead irrigation costs were determined in a manner similar to the cost estimates for machinery. All irrigation costs were estimated for a stationary 401-m center pivot sprinkler system, a system commonly used in Arkansas, which irrigates 52.6 ha. Irrigation labor use, fuel consumption, and equipment repair and maintenance charges were estimated per hectare-meter of irrigation water applied and then allocated to each budget based on the quantity of irrigation water applied to the field plots for each cropping system. Annual overhead costs (depreciation and interest on average investment) for the center pivot system were computed with irrigation parameters used by ACES in published cropping budgets and were charged against each cropping system at a constant rate per hectare.

Rotation Budgeting
Each enterprise budget for the study provided an estimate of gross revenue, cost of production, and NR on a per-hectare basis. Gross revenue and NR were computed at the replicate level based on commodity price and yield data for each plot. Two estimates of profitability were computed: (i) NR above total variable costs (TVC), which measures the contribution of each cropping system to annual farm overhead after direct, variable costs have been paid and (ii) NR above total cost (TC), which measures the contribution to farm overhead after all costs specified in each budget (direct and fixed) have been paid. The latter measure is more comprehensive and appropriate in the present study because differences in machinery complements across the cropping systems are properly accounted. Unpaid labor, overhead capital, land, and management charges were not cost-accounted in the budgets.

Because material input use and field operations were identical across replicates, annual cost of production was estimated at the treatment level for each crop–tillage combination. For the four continuous crops in the study (irrigated soybean, grain sorghum, cotton, and dryland soybean), each treatment-level crop budget reflects costs and returns for the corresponding monoculture system. However, for the two rotational cropping systems (soybean–grain sorghum and soybean–corn) in the study, NR and cost of production were computed for a rotated—i.e., a rotation-weighted—hectare. For rotations, treatment-level budgets for each of the two crops in a rotation were combined into a single rotation-weighted budget, which proportionately blends costs and returns from both crops in the rotation. A rotated hectare is composed of inputs and outputs in proportion to the amount of time that a given crop occupies the cropland relative to the amount of time for a cycle of the rotation. In essence, this proportion is a weight, which when multiplied by individual inputs and outputs, results in an annual enterprise budget containing proportionate costs and returns from each crop in the rotation. In principle, a hectare of land in a soybean–corn rotation, e.g., would consist of one-half hectare of soybean and one-half hectare of corn for each year of the rotation. The corresponding annual budget for this rotation would contain costs and returns from the summed production of one-half hectare each of soybean and corn.

Statistical Analysis
Statistical analysis using general linear modeling (SAS Inst., 1988) was performed to evaluate what factors affected yield and NR. All significant interactions are presented and discussed in the following sections. Significant differences for yield by year, cropping system, and tillage were determined using Fisher's F-test. Duncan's New Multiple Range Test and least significant differences (LSD) were used for mean comparisons of NR.


    RESULTS AND DISCUSSION
 TOP
 ABSTRACT
 INTRODUCTION
 MATERIALS AND METHODS
 RESULTS AND DISCUSSION
 INTERPRETIVE SUMMARY
 REFERENCES
 
Agronomic
With four replicates per subplot treatment (crop) and two main plots (tillage system), there were eight yield observations for each crop in each year, resulting in 48 observations per crop in each cropping system over the 6-yr period. The exception to this was that during 2 yr, no cotton yield data were recorded for the study. In 1990, no cotton was planted due to inadvertent chemical application to all cotton plots. Subsequently, in 1991, no cotton was harvested due to logistical problems at the experiment station research site. These observations were recorded as missing data and excluded from yield and economic analysis. In all remaining years, there were only two replicates for each of the cotton subplots. Consequently, due to these missing data, the number of yield observations for cotton was substantially less than for each of the other crops, i.e., four per year, or 16 over the entire period of the study.

The weather observed over the study period exhibited a range of conditions that can be characterized as normal for the humid southeastern USA. Short intermittent droughts during the growing season were frequently countered with wet periods during which the need to remove excess water was the main concern where drainage was a primary issue (Bruce et al., 1980). Average annual irrigation water applied across all crops during the study was 25.6 cm ha-1, which ranged from a low of 14 cm ha-1 (1989) to a high of 36 cm ha-1 (1988) annually. Average irrigation water applied by crop across years ranged between 23.6 and 29.3 cm ha-1 for grain sorghum and corn, respectively.

Variability in annual mean yields resulted in significant crop x year interactions for all five crops in the study (Table 3). Highest mean yield was attained in the same year (1987) for four (irrigated soybean, nonirrigated soybean, corn, and cotton) of the five crops. The relative range of yields observed over the 6-yr period was most dramatic for nonirrigated soybean, whose highest annual mean yield (1987) was more than four times its lowest mean in 1986. The crop with the lowest relative range of mean yields over the 6 yr was grain sorghum.


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Table 3. Influence of year on crop yield in the long-term cropping system study, Keiser, AR, 1986–1991.

 
For the two crops that were grown both in rotation as well as in continuous monoculture, only grain sorghum exhibited a significant yield interaction with cropping system (Table 4). In a 2-yr rotation with soybean, yield of grain sorghum was greater than that of continuous grain sorghum. By contrast, yield of irrigated soybean grown continuously was not significantly different from that of soybean grown in rotation with either grain sorghum or corn.


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Table 4. Influence of cropping system and seedbed preparation on yield in the long-term cropping system study, Keiser, AR, 1986–1991.

 
Over the study period, conventional tillage resulted in higher yield for soybean and grain sorghum, whereas cotton and corn exhibited higher yield under conservation tillage (Table 4). Nevertheless, for all but grain sorghum, there was no significant yield difference by tillage system. Conventionally tilled plots of grain sorghum resulted in 391 kg ha-1 greater yield than for conservation tillage. The yield advantage of conventional tillage over conservation tillage for nonirrigated soybean was greater than the corresponding yield advantage of conventional tillage over conservation tillage of irrigated soybean, but the difference by tillage system was not significant for soybean yield. For cotton, the yield increase under conservation tillage was dramatic (23%), but large variability coupled with fewer observations resulted in a single yield grouping for cotton. For corn, higher yield was attained under conservation tillage, but the small improvement over conventional tillage was not significant.

Economic
Over the 6-yr study, all systems except continuous grain sorghum were profitable, as measured by NR above TC (Table 5). Cotton (CTI) and soybean monoculture (SBN and SBI) resulted in higher NR above TC than either of the 2-yr rotations (SBI–GSI and SBI–CRI), which contained soybean. Systems that contained grain sorghum—either in rotation (SBI–GSI) or monoculture (GSI)—ranked as the two least-profitable systems. The sole nonirrigated system in the study—monoculture soybean (SBN)—exhibited an average NR above TC that surpassed those of four other irrigated systems, including irrigated soybean.


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Table 5. Mean gross revenue, cost of production, and net returns (NR) in the long-term cropping system study, Keiser, AR, 1986–1991.

 
Noteworthy differences between conservation and conventional tillage budgets, when making pairwise comparison by system, were that under conservation tillage seedbed preparation, TVC of production were typically higher, whereas total fixed costs (TFC) were always lower than for the corresponding system under conventional tillage (Table 5). Under conventional tillage, a larger number of field operations is reflected in a larger machinery complement, which exemplifies itself in higher overhead costs (TFC) in each enterprise budget. In addition, the increased field operations result in higher repair and maintenance, fuel, and labor costs than for conservation tillage systems. By contrast, under conservation tillage, a reduced number of field operations is reflected in correspondingly lower overhead, fuel, labor, and repair and maintenance costs. However, although fuel, labor, and repair and maintenance costs—which are part of TVC—typically decrease under conservation tillage, they are more than offset by a dramatic increase in herbicide costs. As a result, across all systems, TC of production for conservation tillage systems in this study ($439.08 ha-1) were greater on average than for conventional seedbed preparation ($416.04 ha-1).

Seedbed preparation influenced the revenue and NR obtained from one growing season to the next (Fig. 1) . Conservation tillage resulted in higher gross revenue (Fig. 1A) in 1986, lower gross revenue in 1988 to 1990, and similar revenue in 1987 and 1991. Net returns above TC (Fig. 1B) showed that, except for 1986—a year whose midgrowing season was characterized by hot, droughty conditions—conventional seedbed preparation resulted in higher NR above TC than conservation tillage. Under severe drought, as occurred in 1986, conservation tillage showed improved performance over conventional. When the data were re-examined with 1986 removed, the tillage system x year interaction was nonsignificant, whereas the main effect of tillage system was significant (data not shown). The 5-yr mean of NR above TC for all non-1986 years was $188.64 vs. $138.19 ha-1 for conventional and conservation tillage, respectively, with an LSD (0.05) of $29.49. Thus, in 5 out of 6 yr, the conventional seedbed preparation was $50 ha-1 more profitable than conservation tillage.



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Fig. 1. The influence of seedbed preparation method (CONV., conventional tillage; CONS., conservation tillage) and growing season on (A) gross revenue and (B) net returns (NR) above total costs (TC). The LSD0.01 for comparing gross revenue for years with the same seedbed preparation is $86.65 while with differing seedbed preparation methods, it is $61.28. The LSD0.05 for comparing NR with the same seedbed preparation is $65.95 while with differing seedbed preparation methods, it is $46.63.

 
Additional observations with seedbed preparation showed interaction with cropping system. This two-way interaction is independent of other interactions discussed above between seedbed and years. Cotton was the sole crop to exhibit an increase in NR above TC when going from a conventional to a conservation tillage system (Table 6). A re-estimation of the statistics in Table 6 for the five noncotton systems revealed no further interaction between seedbed preparation and cropping system. Net returns above TC averaged over the remaining five noncotton systems revealed that conventional tillage consistently resulted in improved NR above TC for all systems other than cotton.


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Table 6. Net returns (NR) above total costs (TC) for cropping system vs. seedbed preparation in the long-term study, Keiser, AR, 1986–1991.

 
Revenue and NR also showed significant interactions with cropping system and growing season (Fig. 2) . Gross revenue (Fig. 2A) for year and cropping system show dramatic differences from year to year. These same trends are observed for NR above TC (Fig. 2B). Over the 6-yr period, continuous grain sorghum was never profitable. Whereas irrigated soybean was profitable all 6 yr of the study, nonirrigated soybean incurred losses in 1986. Nevertheless, when averaged over the 6-yr study period, nonirrigated soybean was more profitable than irrigated soybean. It is noteworthy that in 1987—a year of normal rainfall evenly distributed throughout the growing season—nonirrigated soybean had higher NR above TC than irrigated soybean. The combination of lower (or negative) NR above TC in droughty years and higher NR above TC in normal years provides evidence that nonirrigated soybean results in greater income variability than irrigated soybean. Neither the soybean–grain sorghum nor the soybean–corn rotation was as profitable as continuous nonirrigated soybean. Net returns for cotton were by far the most variable but remained profitable every year.



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Fig. 2. Relation of (A) gross revenue and (B) net returns (NR) above total costs (TC) to cropping system as affected by year. The LSD0.01 for comparing years within the same system is $61.45 ($68.72 when one system is cotton) while in different systems, it is $25.08 ($28.05 when one system is cotton) in A. The LSD0.01 for NR above TC for comparing years within the same system is $61.45 ($68.72 when one system is cotton) while in different systems, it is $25.08 ($28.05 when one system is cotton) in B. SBI, irrigated soybean; GSI, irrigated grain sorghum; SBI/GSI, irrigated soybean followed by irrigated grain sorghum; SBI/CRI, irrigated soybean followed by irrigated corn; CTI, irrigated cotton; and SBN, nonirrigated soybean.

 
The enterprise budgets in Table 5 and the economic results in Fig. 1 and 2 and Table 6 reflect price relationships that existed when the study was conducted between 1986 and 1991. One economic issue worthy of mention is that the relative price of the two burndown chemicals used in the study decreased dramatically in the period immediately after the study was conducted. The nominal price of glyphosate and paraquat each decreased by approximately $22 kg-1 a.i. in the 6-yr period immediately following the study. In real terms, the new prices of glyphosate and paraquat decreased to 45 and 49%, respectively, of their old prices.

Because burndown chemicals were used only with conservation tillage seedbed preparation, the herbicide cost of all conservation tillage systems would be relatively less than their counterpart conventional systems if the study had been conducted with lower cost of burndown chemicals. Relative to conventional systems, the new lower prices of burndown chemicals would have reduced the cost of each conservation tillage system in Table 5 an average of $23.17 ha-1.

Nevertheless, even though lower burndown costs would have benefitted all conservation tillage systems by increasing their profitability relative to the conventional systems, the ranking of cropping systems by NR reported above would not have been affected. First, with the exception of cotton (CTI), conventional seedbed preparation for each of the five noncotton systems would result in higher NR than conservation tillage although the margins between the tillage systems in Table 6 would be narrower using the new lower burndown costs. Second, NR above TC for conservation tillage cotton (CTI) and monoculture conventional soybean (SBN and SBI) would continue to dominate the less profitable 2-yr rotations containing soybean (SBI–GSI and SBI–CRI), and monoculture grain sorghum (GSI) would continue to generate negative NR. Third, the TVC of conservation tillage production would still be higher than under conventional seedbed preparation for all systems with the exception of cotton, and TFC would be unaffected for all systems. Finally, with lower burndown costs, the only result that would alter the rankings previously reported is for TC of production. Across all systems, lower burndown costs would reduce TC of production for conservation tillage systems ($415.91 ha-1) in Table 5 to a level which, on average, is nearly identical to but slightly less than for conventional seedbed preparation ($416.04 ha-1).


    INTERPRETIVE SUMMARY
 TOP
 ABSTRACT
 INTRODUCTION
 MATERIALS AND METHODS
 RESULTS AND DISCUSSION
 INTERPRETIVE SUMMARY
 REFERENCES
 
In a 6-yr study on clayey soil in the Mississippi Delta of eastern Arkansas, conventional tillage resulted in higher average NR than conservation tillage for all cropping systems, with the exception of continuous cotton (CTI). Although the most profitable system was continuous cotton with conservation tillage seedbed preparation, NR above TC varied widely across years, and there were fewer observations for cotton than for other systems in the study. Among conventional tillage seedbed preparation, nonirrigated continuous soybean (SBN) was more profitable than any of the irrigated systems, including irrigated soybean (SBI). However, irrigated soybean resulted in NR above TC that were less variable than nonirrigated soybean, which implies that risk–return tradeoffs are encountered when choosing between these two systems. Although diversification of enterprises is a tool to reduce risk, this study does not encourage either monoculture grain sorghum (GSI) or soybean in rotation with either grain sorghum (SBI–GSI) or corn (SBI–CRI) because of the potential for reduced profitability. The study confirmed the increased variable costs and decreased equipment costs that accompany conservation tillage systems. Even with dramatic changes in burndown herbicide costs since the study was conducted, the relative rankings of cropping systems for profitability did not change.


    REFERENCES
 TOP
 ABSTRACT
 INTRODUCTION
 MATERIALS AND METHODS
 RESULTS AND DISCUSSION
 INTERPRETIVE SUMMARY
 REFERENCES
 




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