Lower Net Returns Research Articles

Economic Feasibility of No‐Tillage and Manure for Soil Carbon Sequestration in Corn Production in Northeastern Kansas

This study examined the economic potential of no-tillage versus conventional tillage to sequester soil carbon by using two rates of commercial N fertilizer or beef cattle manure for continuous corn (Zea mays L.) production. Yields, input rates, field operations, and prices from an experiment were used to simulate a distribution of net returns for eight production systems. Carbon release values from direct, embodied, and feedstock energies were estimated for each system, and were used with soil carbon sequestration rates from soil tests to determine the amount of net carbon sequestered by each system. The values of carbon credits that provide an incentive for managers to adopt production systems that sequester carbon at greater rates were derived. No-till systems had greater annual soil carbon gains, net carbon gains, and net returns than conventional tillage systems. Systems that used beef cattle manure had greater soil carbon gains and net carbon gains, but lower net returns, than systems that used commercial N fertilizer. Carbon credits would be needed to encourage the use of manure-fertilized cropping systems.

Demarcating Management Zones for Site‐Specific Farming Using Electromagnetic Induction and Yield Maps in Eastern Oregon

Traditional farming practices in eastern Oregon ignore the inherent spatial variability (topography, soils) resulting in inefficient farming and lower net returns. Site-specific farming (SSF), or farming based on requirements of specific areas in a field, has the potential to improve input use efficiency and farm profits. To implement SSF, however, management zones should be demarcated preferably based on factors that most affect yield. The most common method for demarcating management zones is through intensive grid sampling that can be very expensive. The objective of this study was to find cheaper and quicker ways to demarcate management zones in a field in eastern Oregon. This study evaluated the use of electrical conductivity (EC) and yield maps in demarcating management zones. A 28-acre field was characterized for depth and nutrients at a 100-ft grid. Wheat was uniformly seeded throughout the field and harvested at each grid location. Results indicated that the spatial variability of wheat yield was influenced by soil depth. EC data were correlated with both depth and grain yield and can therefore be used to demarcate management zones quicker and cheaper than grid sampling in this field. Information from yield maps was also useful in demarcating management zones for SSF.

Progressive Estate Taxation

For an economy with altruistic parents facing productivity shocks, the optimal estate taxation is progressive: fortunate parents should face lower net returns on their inheritances. This progressivity reflects optimal mean reversion in consumption, which ensures that a long-run steady state exists with bounded inequality - avoiding immiseration.

Biological Efficiency and Economic Benefits of Pea-Barley and Pea-Oat Intercrops

ABSTRACT To optimize use efficiency of production resources, Newfoundland (NL) dairy farmers intercrop barley (Hordeum vulgare L.) and oat (Avena sativa L.) with field pea [Pisum sativum subsp. sativum var. arvense (L.) Poir.]. An experiment was conducted in 2000 and 2001 in a temperate sandy loam to determine seeding rate complementarity of barley and oat in pea-barley and pea-oat intercrops for forage and nitrogen (N) yields. The monocultures of barley and oat were each sown at 85 and 170 kg ha−1, and pea was sown at 150 kg ha−1. For pea-barley and pea-oat intercrops, pea was sown at 150 kg ha−1 and each cereal component was sown at 85 and 170 kg ha−1. The nine treatments were referred to, respectively, as pea150, barley85, oat85, barley170, oat170, pea150-bar-ley85, pea150-oat85, pea150-barley170, and pea150-oat170. The land equivalent ratio (LER), defined as the relative land area under monoculture that is required to produce the yields achieved in intercropping, and its analogues were used to compare biological efficiency and economic benefits that pea-cereal intercrops had over monocultures. There were no significant effects of year and year H treatment interactions on forage and N yield. Barley170 gave the highest forage yield, N yield and net return. Oat85 gave the lowest forage and N yield, and pea150-oat85 gave the lowest net return. Mixing pea with barley or oat significantly reduced the yields of all three component crops relative to the monoculture crop. Reduction in both forage and N yields of pea due to intercropping ranged from 40% in pea150-oat85 to 48% in pea150-oat170. Doubling the seeding rate of barley from 85 to 170 kg ha−1 reduced land advantage in terms of both forage and nitrogen (N) yield, although among the intercrops, pea150-barley170 was the most profitable in forage and N yield, and net economic return. As a result, pea150-barley85 gave the highest land advantage in terms of forage yield and pea150-oat170 gave the highest land and monetary advantage in terms of forage yield and forage N yield.

Carbon Sequestration in Soil with Consideration of CO2 Emissions from Production Inputs: An Economic Analysis

An economic analysis of wheat and grain sorghum production systems that affect carbon dioxide (CO2) emissions and sequester soil carbon (C) in metric tons (MT) is conducted. Expected net returns, changes in net C sequestered, and the value of C credits necessary to equate net returns from systems that sequester more C with those that sequester less is determined with and without adjustments for CO2 emissions from production inputs. Experiment station cropping practices, yield data, and soil C data for continuously cropped and rotated wheat and grain sorghum produced with conventional tillage and no-tillage are used. No-till has lower net returns because of somewhat lower yields and higher overall costs. Both crops produced under no-till have higher annual soil C gains than under conventional tillage. However, no-till systems have somewhat higher total atmospheric emissions of C from production inputs. The C credit values estimated in this study will equate net returns of no-tillage to conventional tillage range from $8.62 to $64.65/MT/yr when C emissions from production inputs are subtracted from soil C sequestered, and $8.59 to $60.54/MT/yr when atmospheric emissions are not considered. This indicates accounting for CO2 emissions from production inputs may not be necessary in the process to issue C credits.

Impact of Rye Cover Crop and Herbicides on Weeds, Yield, and Net Return in Narrow-Row Transgenic and Conventional Soybean (Glycine max)1

A field study was conducted during 1999, 2000, and 2001 at Stoneville, MS, on a Dundee silty clay loam to determine the impact of a rye cover crop with one or two postemergence (POST) herbicide applications on weed control, yield, and net return in narrow-row glyphosate-resistant, glufosinate-resistant, and conventional soybean systems. Cover crop systems included no–cover crop conventional tillage (CT), no–cover crop no-tillage (NT), and rye NT, all with early POST (EPOST), EPOST followed by late POST (LPOST), and no-herbicide weed management. Weed control and net return among glyphosate-resistant, glufosinate-resistant, and conventional soybean systems were similar. One POST ($111/ha) application of herbicides was more profitable than two POST ($79/ha) applications regardless of soybean cultivar and cover crop system. Rye residue reduced total weed density by 9 and 27% and biomass by 19 and 38% compared with no–cover crop CT and NT, respectively. In the rye cover crop, input costs were higher because of the additional cost of seed, planting, and rye desiccation. The additional cost resulted in a lower net return with the rye cover crop ($29/ha) compared with the no–cover crop CT ($84/ha) or NT ($87/ha) system, even though soybean yield in the rye cover crop system was comparable to that from the no–cover crop CT and NT systems. These results showed that because of additional cost, rye cover crop–based soybean production was less profitable compared with existing no–cover crop–based production systems.Nomenclature: Acifluorfen; bentazon; chlorimuron; clethodim; glufosinate; glyphosate; barnyardgrass, Echinochloa crus-galli (L.) Beauv. #3 ECHCG; browntop millet, Brachiaria ramosa (L.) Stapf # PANRA; hemp sesbania, Sesbania exaltata (Raf.) Rydb. ex A. W. Hill # SEBEX; pitted morningglory, Ipomoea lacunosa L. # IPOLA; prickly sida, Sida spinosa L. # SIDSP; sicklepod, Senna obtusifolia (L.) Irwin and Barneby # CASOB; smooth pigweed, Amaranthus hybridus L. # AMACH; rye, Secale cereale L. ‘Elbon’; soybean, Glycine max (L.) Merr. ‘DP 3588’, ‘DP 5806 RR’, ‘A 5547 LL’.Additional Index words: Conventional tillage, herbicide, integrated weed management, mulch, net return, no-tillage, transgenic soybean, weed biomass, weed density.Abbreviations: CT, conventional tillage; EPOST, early postemergence; LPOST, late postemergence; NT, no-tillage; POST, postemergence; WAP, weeks after planting.

Row Width and Weed Management Systems for Early Soybean Production System Plantings in the Midsouthern USA

Management inputs that maximize economic return from the early soybean [Glycine max (L.) Merr.] production system (ESPS) in the midsouthern USA have not been evaluated fully. Field studies were conducted at Stoneville, MS (33°26′ N lat) to determine effect of weed management on yield and net return from maturity group (MG) IV and MG V cultivars grown in the ESPS in narrow rows (NRs; 50‐cm width) and wide rows (WRs; 100‐cm width) in nonirrigated (NI) and irrigated (IRR) environments. Use of NRs vs. WRs resulted in less weed cover at soybean maturity, but this was associated with greater weed management costs in NRs. In NI, choice of MG for ESPS plantings and choice of row width for MG V cultivars was arbitrary, but the MG IV cultivar did best in NR. Use of both pre‐emergent (PRE) and postemergent (POST) broadleaf weed management in both NRs and WRs resulted in lower net returns. In IRR, NRs outyielded WRs, the MG IV cultivar yield equaled or exceeded the MG V yield in NRs, and the MG V cultivar outyielded the MG IV cultivar in WRs in both years. Differences in net returns followed yield differences. Use of POST‐only broadleaf and grass weed management resulted in the highest net returns across the 2 yr. Thus, a MG IV cultivar planted in NRs with POST weed management appears to be the most profitable option in IRR‐ESPS plantings. If WRs are required for management reasons in the ESPS, a MG V cultivar should be used.

Efficacy of herbicides applied alone and in tank mixture with isoproturon against wild oat (Avena ludoviciana) and broad leaf weeds in wheat (T ticum aestivum)

An investigation was conducted during winter seasons of 1996 97 and 1997 98 at Gurdaspur, Punjab, on fields heavily infested with broad leaf of weeds. An application of metribuzin (0.175 kg/ha) or pendimethalin (0.7 kg/ha) alone or tank mixture of isoproturon metribuzin (0.75 0.1 31 kglha), isoproturon atrazine (0.75 0.094 kglha) or isoproturon 2, 4 D (0.94 0 5 kg/ha) provided effective control of broad leaf weeds in wheat (Triticum aestivum L. emend. Fiori Paol.) Application of 2, 4 D or diclofopmethyl/tralkoxydim alone was not effective against broad leaf weeds, especially Medicago denticulata Willd., Lathyrus X aphaca L. and Vicia sativa L. However, diclofopme hyl or tralkoxydim alone in tank mixture with isoproturon effectively controlled wild oat. lsoproturon atrazine and isoproturon 2, 4 D recorded the lowest dry matter of weeds in the first and second year respectively. The maximum weed density and dry matter of weeds were recorded in weedy check. Application of metribuzin (0.175 kglha) resulted in the maximum grain yield which was at par with tank mix application of isoproturon metribuzin, isoproturon atrazine, isoproturon 2,443, isoproturon and pendimethalin, whereas weedy check resulted in the minimum grain yield. The maximum net returns were obtained with metribuzin (0.175 kglha) application, followed by isoproturon metribuzin. However, maximum benefit : cost ratio was registered with atrazine applied 0.094 kglha. Diclofopmethyl resulted in the lowest net returns and benefit : cost ratio.

Production potential and economic viability of food- forage based cropping system under irrigated conditions

A field experiment was conducted between 2001 and 2006 at Jhansi (Uttar Pradesh) to evaluate the production potential, system productivity and economics of six food-forage based cropping system under irrigated conditions of Bundelkhand region. Groundnut ( Arachis hypogea L.) - berseem ( Tr ifolium alexandrinum L. emend. Fiori & Paol.) - forage maize ( Zea mays L.) + forage cowpea ( Vigna unguiculata L. Wilczek.) recorded significantly supe- rior forage equivalent yield (155.8 t/ha/year), system productivity (0.43 t/ha/day), net returns (Rs.56,670/ha/year) and benefit: cost ratio (1.62) than other sequences. The increase in forage equivalent yield and net returns with groundnut - berseem - maize (F) + cowpea (F) over groundnut - wheat ( Tr iticum aestivum L.) - green gram ( Phaseolus radiatus L. Walp.) was 35 and 44, respectively. Lowest net returns (Rs 29,575/ha/yr) was recorded with sorghum (single cut) - wheat - green gram. The crop sequence of sorghum (multi-cut) - berseem recorded higher B: C ratio (1.60) than groundnut - wheat - maize + cowpea (1.42) indicating higher returns from forage based sys- tems. Integration of forage maize + cowpea during summer in food-forage system (groundnut - wheat - maize + cowpea) recorded 44 % increase in production efficiency over food-based system. Inclusion of forages [(berseem or maize (F)+ cowpea(F)] in groundnut-based cropping system, was found quite stable with sustainability index of 0.96 and 0.92, respectively. Land use efficiency (100.0) and employment generation efficiency (1.02 man-days/ ha/day) were highest in round the year forage production system [Napier bajra hybrid + (cowpea-berseem) ] due to intensive cropping schedule. Soil physico - chemical status of food-forage based system was improved with re- spect to organic carbon (17%) and available N (12.7%) and P (27%) in 0-15 cm soil over initial level. Infiltration rate was improved from 1.05 to 2.11 mm/hr. Soil pH, electrical conductivity and bulk density were marginally reduced. However, available K status was slightly increased indicating that food-forage based system not only maintains soil fertility but improves over period of time. Based on system productivity and net returns, groundnut - berseem - maize (F) + cowpea (F) was found most efficient food - forage based system for Bundelkhand region closely fol- lowed by groundnut - wheat - maize (F) + cowpea (F) and sorghum (multicut) - berseem.

Productivity and economics of banana (Musa species AAA)- based crop sequences

In a field experiment performance of 7 banana (Musa sp., AM)-based crop sequences was assessed in terms of their productivity, economic returns and impact on soil fertility. The crop, whose combinations constituted the sequences were banana, papaya (Carica papaya L.), pigeonpea [Cajanus cajan (L.) Millsp.], wheat (Triticum aestivum L. emend. Fiori & Paol.), maize (Zea mays L.), cowpea [Vigna unguiculata (L.) Walp.], okra (Hibiscus esculentus L.), greengram (Phaseolus radiatus L.) and lentil (Lens culinaris Medikus). The sequence of banana PC (PC, plant crop) - papaya (2 crop cycles)-banana PC-banana R, (R,, first ratoon) gave the highest banana-equivalent yield (78.57 tonnedhdyear), net return (Rs 78.414lhdyear) as well as returnlrupee investment (Rs 1.991Re). Another sequence (banana PC-banana R,-lentil-pigeonpea-papaya 1 crop) where banana and papaya were seperated by growing pulses proved to be comparable with the best treatment with a return rate of Rs 1.88lrupee investment. The above 2 sequences did not show any adverse impact on soil- fertility status. Crop sequence without banana was least profitable. Banana monoculture for 4 crop cycles [banana PGbanana R,- banana R2 (R, second ratoon)-banana PC] showed yield decline in third and fourth cycles, registering a lower net return of Rs 1 .WRelyear.

Administering Individual Accounts in Social Security: The Role of Values and Objectives in Sharing Options

This paper seeks to clarify the current debate surrounding individual accounts by exploring systematically the variety of structural and administrative arrangements that either have been proposed for individual account systems in this country or have been adopted in other parts of the world. Plans from Chile, Latin America, Australia, the United Kingdom, Sweden and the United States are examined, including the Roth, personal security accounts, Ball, Porter, Moynihan and Feldstein/Samwick proposals. The paper focuses on two aspects of arrangements: (1) the mechanisms employed under each plan to move the money from contributors to pension fund managers and back to retirees and (2) the variations among the plans in the financial management choices available to workers. The purpose is to analyze the logic underlying different structural arrangements, and to help quantify the linkage between structure and outcomes. In particular, available information can help to illustrate some of the potential relationships between the structure of an individual account plan, gross investment returns, administrative costs, and net returns. The goals of individual accounts systems include an improved overall economy, higher rates of return on Social Security contributions, greater individual choice and responsibility, and reduced government liabilities. No single plan is likely to be the best one to achieve all of these goals. Constructing an individual account plan requires making choices in which one objective must be sacrificed in order to pursue another. The administrative costs associated with the plans implemented in Latin America and the United Kingdom have caused some analysts to look for alternative structures that promise lower costs and (potentially) higher net returns to workers. The alternatives tend to suffer from one or more drawbacks of their own, however. Employers may have to shoulder a higher burden, worker choice may be constrained, or the government may have to be relied upon to play a major role in collecting contributions, maintaining account information, or even managing the accumulating funds. The trade-off between worker choice and administrative costs is also present in the design of withdrawal options, where choice is likely to increase costs as a result of both adverse selection and the marketing and promotional costs of private insurers. A further issue that divides plans concerns the treatment of gender differences in life expectancy under the different payment options. Before Americans can consider proposals for individual accounts they must first develop more of a consensus about the relative importance of the objectives being pursued and the social values being understood.

OPTIMAL CROPPING PATTERN FOR LIMITED WATER SUPPLY: A CASE STUDY IN LEBANON

The problem of optimal allocation of a limited water supply, for irrigation of several crops in the same area, isaddressed in this article. Both intraseasonal and interseasonal competition for water, among various crops, is considered.A Linear Programming mathematical model was developed to determine optimum water allocation. The main objective ofthis optimization model was to choose the optimal cropping pattern that satisfies the existing climatic, agronomic, economic,and land and water availability constraints for a selected pilot study area in Ghazzah, in the South Bekaa region of Lebanon.Two different scenarios, as well as another irrigation distribution scheme already planned for the pilot area, were comparedto the current practice. Different conditions and restrictions on crop production and utilization of land resources were testedwithin the two scenarios. Results reveal that neither the current cropping pattern nor that of the planned distribution schemeis optimal, and that they should be replaced. The lowest net return is achieved with the current cropping pattern. Higher profitscould be obtained in both tested scenarios due to the introduction of new crops to the area. The recommended scenario is theone having the highest net benefit to initial investment cost ratio.

Stochastic economic variables and their effect on net returns to channel catfish production

The impact of stochastic price and yield variables on the net returns to catfish production was empirically examined within a risk evaluation framework. Estimated probability distributions for catfish producer prices, catfish feed prices, and simulated catfish yields were incorporated into enterprise budgets that represented three different farm sizes (160 acres, 320 acres, and 640 acres) and two types of general production technologies (single and multiple batch). Simulations generated net return probability distributions which were evaluated using stochastic dominance criteria. Results indicated that the stochastic prices and yields typically experienced by producers leads to non‐normal net return distributions that could lead the risk‐averse producer to underestimate the probability of obtaining low net returns. Results also indicated that large farms were the most risk efficient, regardless of the production technology employed. This suggests the likely continuance of the trend toward fewer, but larger, catfish farms.

Evaluation of Seedbed Preparation, Planting Method, and Herbicide Alternatives for Dryland Soybean Production

The current economic situation provides incentives for producers to reduce input costs. Examples include reduced herbicide rates and an array of planting methods that utilize new herbicide and equipment technologies. This study investigated the implications of seedbed preparation (conventional vs. conservation tillage), planting equipment (broadcast, drill, no‐till drill, air seeder, and planter), and herbicide alternatives [full‐rate preplant followed by full‐rate over the top (FRI), reduced‐rate preplant followed by reduced‐rate over the top (RRI), and full‐rate over the top by itself (FROT)] for soybean [Glycine max (L.) Merr] at two locations (Keiser and Pine Tree, AR) with two cropping systems (full season vs. double‐cropped). While some yield differences were observed across seedbed preparation and planting equipment, they did not lead to consistent results. Conventional and conservation tillage were the preferred production strategies for full‐season and double‐cropped systems, respectively. Seasonal labor, weather, and scale of operation are expected to play a major role because planting equipment did not impact yields or cost. Herbicide programs did not affect yields. Lower costs through reduced‐rate herbicide applications led to higher returns and lower financial risk without restricting the planting method. Both the FROT and RRI weed control systems lead to higher returns compared with the FRI system. Producers concerned with the lack of residual herbicide activity afforded by preplant herbicides would be expected to choose the RRI system at the cost of slightly lower net returns in the full‐season system.

Appropriate Crop Seeding Rate When Herbicide Rate is Reduced1

Abstract: A study was conducted at three locations in Saskatchewan, Canada, in 1996 and 1997 to determine if increasing the seeding rate of wheat, barley, and lentil by 50% would maintain weed control and crop yield when herbicides are applied at reduced rates or not at all. Three herbicide rates (½ of full, ¾ of full, and full recommended label rate), along with an untreated check, two crop seeding rates (normally recommended and 1.5 times normally recommended rates), and three crops were tested. Increasing seeding rate did not affect weed fresh weights, crop yield, and net return responses to herbicides applied at reduced rates or not at all when averaged across crops, years, and locations. Increased seeding rate, independent of the different herbicide applications, had infrequent and inconsistent effects among the crop by year by location combinations. More broadleaf and grass weed growth, less crop yield, and lower net returns generally occurred when herbicides were not applied or applied at reduced r...

Assessing the Impact of Price and Yield Risk in the Southern U.S. Catfish Industry

The study characterizes catfish price and yield risk by empirically determining the probability distribution of stochastic price and yield variables. The impact of the stochastic variables is then evaluated in the context of a catfish enterprise budget. Probability distributions of net returns are evaluated using stochastic dominance criteria. Results indicated that the distributions of yields and catfish prices appear to determine the shape of the distribution of residual net returns, and that the beta distribution most appropriately described the expected net returns for all combinations of production systems and farm sizes. If a beta distribution describes reality, but the risk averse producer assumes his expected returns are normally distributed, then he or she will underestimate the probability of obtaining low net returns. Thus, under an assumption of normality, producers may make decisions that place their operations in greater financial peril than they may otherwise would if they understood the true distribution of their expected net returns. Results also showed that the single-batch production system for small size farms was the most inefficient technology/size combination.

Comparative Cost Analyses of Conventional, Integrated Crop Management, and Organic Methods

Production costs have been analyzed in several studies using such normative approaches as budgeting and mathematical programming, and positive approaches as estimation of production, cost, or profit functions. This study used budgeting methods to analyze the costs and benefits of adopting integrated crop management (ICM) or organic methods versus conventional agriculture for tomatoes (Lycopersicon esculentum Mill.), sweet corn (Zea mays L. var. saccharada), and pumpkins (Cucurbita pepo L.). Data were collected using field studies conducted at the Rutgers University Snyder Research and Extension Farm, Pittstown, N.J. Time and motion study techniques were used to record machinery use and labor quantities. Records of production inputs and yields were also collected. These records were then converted to a 1.0-acre (0.4-ha) basis to constructed crop budgets. Results show that ICM systems are more profitable than conventional and organic systems. Organic systems had the lowest net returns. However, because of the organic price premium, the net returns were fairly close to those for conventional and ICM systems.

Agronomics and Economics of Different Weed Management Systems in Corn and Soybean

The USDA has a goal of implementing integrated pest management (IPM) practices on 75% of crop area by 2000. Growers require more economic information before adopting IPM practices. A field study was initiated in New York to evaluate weed control, yields, and net returns of chemical (broadcast herbicides), chemical–mechanical (banded herbicides and cultivations), and mechanical (rotary hoe and cultivations) weed management under moldboard plow and chisel tillage in corn (Zea mays L.) and soybean [Glycine max (L.) Merr.]. Chemical and chemical–mechanical weed management had similar corn net returns under moldboard plow ($370 and $355 ha−1, respectively) and chisel tillage ($282 and $287 ha−1). Mechanical weed management had less net returns in moldboard plow ($302 ha−1) and chisel tillage ($121 ha−1) because of 15% lesser corn densities and greater weed densities, especially in chisel tillage. In soybean, mechanical weed management in moldboard plow tillage had similar weed density (1.5 weeds m−2) lower yield (2.71 Mg ha−1), but similar net return ($107.50 ha−1) compared with chemical (1.3 weeds m−2, 2.92 Mg ha−1, and $85.60 ha−1, respectively) and chemical–mechanical weed management (1.0 weeds m−2, 2.78 Mg ha−1 and $99.35 ha−1, respectively). In chisel tillage, mechanical weed management had greater weed density (7.4 weeds m−2), lower yield (2.2 Mg ha−1), and lower net return (−$7.80 ha−1) compared with chemical (1.9 weeds m−2, 2.8 Mg ha−1, and $56.80 ha−1, respectively) and chemical–mechanical weed management (1.9 weeds m−2, 2.4 Mg ha−1, and $27.30 ha−1). Corn and soybean growers apparently can adopt chemical–mechanical weed management and maintain net returns. Soybean growers who use moldboard plow tillage can also adopt mechanical weed management and maintain net returns.

Economic Analysis of Alternative Herbicide Regimes on Roundup Ready Soybeans

Roundup (glyphosate) is a nonresidual herbicide that controls grasses and dicot weeds but is injurious to soybeans. The development of Roundup-resistant soybeans [Glycine max (L.) Merr.] (Roundup Ready soybeans) by Monsanto could allow farmers to substitute Roundup for all other herbicides to reduce production costs and weed control risk. Field trials at the University of Tennessee Milan Experiment Station from 1995 through 1997 were used to compare 1997 returns above variable costs for Roundup and 11 other herbicide systems on conventionally tilled, Roundup Ready soybeans. Although yields of only four herbicide systems on Roundup Ready soybeans were significantly lower than the yield of Roundup on Roundup Ready soybeans, net returns of nine systems were significantly lower. The significantly lower net returns resulted mostly from higher herbicide costs. Chemical companies would have to reduce the costs of most non-Roundup herbicide systems to unreasonably low levels (close to or less than zero) before farmers would have an economic incentive to use them instead of Roundup on Roundup Ready soybeans. Budgeted production costs for Roundup on Roundup Ready soybeans (Roundup Ready seed at $26/50 lb bag) were also compared with budgeted production costs for the non-Roundup herbicide systems on conventional soybean varieties (public-domain seed at $10.50/50 lb bag). Seven of the 11 non-Roundup herbicide systems on conventional varieties had costs that were greater than Roundup on Roundup Ready soybeans, suggesting that lower seed costs for the non-Roundup systems were more than offset by higher herbicide costs. Yields required to cover the cost differences between the non-Roundup herbicide systems and Roundup on Roundup Ready soybeans were calculated. These yield differences were added to the experimental yield obtained with Roundup on Roundup Ready soybeans to arrive at a break-even yield. A decision criterion for profit-maximizing farmers was developed from these break-even yields; if a profit-maximizing farmer expects to receive a yield from his/her highest-yielding conventional variety that is less than the break-even yield, the farmer should consider planting Roundup Ready soybeans to obtain a higher expected profit. If the decision criterion suggests staying with the conventional variety, the farmer should consider the nonbudgeted benefits of Roundup Ready soybeans, such as improved timeliness of planting and reduced weed control risk, before making the decision. To obtain more conclusive evidence about the relative profitability of Roundup Ready soybeans, future research should include side-by-side variety trials, more years of data, and no-tillage production methods.

Average Returns and Risk Characteristics of Site Specific P and K Management: Eastern Corn Belt On-Farm Trial Results

The objective of this study was to provide an economic assessment of site specific management (SSM) of P and K. The data were collected from 1993 to 1995 in farmer managed on-farm trials coordinated by Purdue University and DeKalb-Agra, a Waterloo, IN, agricultural input supply and marketing cooperative. Whole field management (WFM) was compared with SSM using either three acre grids or soil type for soil sampling and fertilizer recommendations. The data indicate that site specific P and K application on corn (Zea mays L.), soybean [Glycine max (L.) Merr.], and wheat (Triticum aestivum L.) did not reliably increase net returns. The main effect of the site specific P and K applications on physical quantities of fertilizer was to redistribute the nutrient applications within fields. Both grid and soil type treatments had lower net return standard deviations than WFM. Both mean-variance and stochastic dominance (SD) analyses indicate that the soil type approach dominated the WFM for risk averse decision makers.