Economic risk, returns and input use under ridge and conventional tillage in the northern Corn Belt, USA

Abstract

Ridge tillage (RT) has been proposed as an economically viable conservation tillage alternative for row crop production; however the long-term economic viability of RT in the northern Corn Belt of the USA is largely unknown. Economic returns, risk and input use were compared for RT and conventional tillage (CT) in a corn ( Zea mays L.) and soybean ( Glycine max (L.) Merr.) rotation with high, medium and low nitrogen treatments. The analysis was based on 10 years of experimental data from Brookings, SD on a Barnes clay loam (US soil taxonomy: fine-loamy, mixed, superactive, frigid Calcic Hapludoll; FAO classification: Chernozem). Economic returns were significantly higher at the highest nitrogen treatment levels. Highest average net returns to land and management were $ 78 per hectare for RT at the high nitrogen treatment level (RT-H) followed by $ 59 per hectare for CT at the high nitrogen treatment level (CT-H). Risk, measured as the standard deviation of net returns, was the lowest for CT at the medium nitrogen treatment level (CT-M) followed by RT-H and CT-H. However, net returns were substantially lower under CT-M at $ 32 per hectare. Average yields and average operating costs were not significantly different for RT-H and CT-H. Reduced equipment operating costs for CT-H were offset by increased herbicide costs for RT-H. Equipment ownership costs were significantly lower for RT-H than CT-H. There were no significant differences in fertilizer use for RT and CT. Pesticide use was significantly higher for RT-H than CT-H. Fuel use was 18–22% lower and labor use was 24–27% lower for RT-H than CT-H. Despite continued low adoption rates for RT in the northern Corn Belt, our analysis shows that RT is an economically viable alternative to CT.