Risk-Efficient Tillage Systems and Program Participation Strategies for Land Subject to Conservation Compliance

Abstract

monocropped to winter wheat. The wheat commodity program has been an important riskmanagement tool contributing to the development of wheat monocropping because the program has provided long-run incentives to maintain wheat base acres (Young and Painter). The federal program has provided subsidy (deficiency) payments to participating farmers in years with low market prices. Those who farm highly-erodible land have been required to implement soil conservation production practices to maintain eligibility for direct agricultural payments and other federal programs. In Oklahoma, approximately three million acres of cropland, classified as highly erodible, are used for continuous wheat production. Winter wheat is grown for both grain and forage. Livestock may be grazed on wheat forage in the region beginning in November. If livestock are removed prior to the crop's jointing stage (typically in early March), wheat will mature and produce a grain crop (Rodriguez et al.). If grazing is extended into March and April, the grain crop will be sacrificed. This practice is referred to as grazeout. Thus, producers may elect to use livestock for winter grazing (November 15 to March 1), winter grazing and grazeout (November 15 to May I),'or grazeout (March I to May I). The vast majority of compliance plans for wheat production land include the use of a conservation tillage system designed to retain plant residue on the soil surface throughout the year. Those who use a moldboard plow and cover virtually all surface residue may fail to qualify for federal deficiency payments. However, several tillage systems studies conducted in the wetter regions of the Great Plains have found that wheat grain yield is inversely related to the amount of surface residue (Bauer and Black; Cook and Veseth; Heer and Krenzer; Zingg and Whitfield). In this region, increased surface residue on fields monocropped to winter wheat results in more diseases, more weeds, and lower yields. The purpose of this study is to generate information that could be used by farmers confronted with conservation-compliance requirements. The economic consequences of noncompliance, as well as compliance and participation in federal commodity programs will be considered. The diversification strategy of grazing wheat forage during the winter months will also be evaluated for economic feasibility. The objective of the study is to determine riskefficient tillage, program participation, and grazing strategies for a representative north central Oklahoma wheat farm with land subject to conservation compliance. The results provide an estimate of the cost of noncompliance.