Soil Management and Fertilizer Use:
Economics of Conservation Tillage
(Production Costs)

Excerpt from Agronomy Guide for Field Crops (Chapter 2)

Order OMAFRA Publication 811: Agronomy Guide for Field Crops

Table of Contents

1. Introduction
2. Updates on Soil Management and Fertilizer Use: Economics of Conservation Tillage (Production Costs)
3. Related Links...

Introduction

A number of factors need to be considered when comparing different tillage systems. The costs of production for a particular system are important, but yield and erosion control must also be considered. The highest yield does not always give the greatest net return. A few bushels less per acre obtained with one tillage system may be more than offset by the lower total cost per acre.

Each system requires specific tillage and planting equipment, fertilizer and pest management as well as subtle changes in many other aspects of the crop management program. A system with lower costs is not better if soil erosion is not controlled and yields decline to the point where net profits are reduced.
In general, primary tillage costs for conservation tillage systems are lower than those that include moldboard plowing. Most conservation tillage systems have fewer field operations and thereby reduced costs. Fertilizer and seed costs are similar among systems. Herbicide costs may be higher in the initial years but usually decrease to the point where costs are similar to conventional systems. Generally, the product and rate of application for broadleaf and grass control treatments are the same for conventional and conservation tillage. Banding herbicides in ridge-till systems can result in a significant cost saving.

Fuel costs in no-till systems are less than 50% of those in the moldboard tillage system for corn, soybeans and winter wheat. Similarly, labour is reduced by over 40%. Mulch tillage systems are intermediate, depending on the specifics of the system used. Total costs per acre of the conservation tillage systems are 15% less than the moldboard system, with most of the decrease attributed to reduced costs in seedbed preparation.

There are learning costs associated with changing tillage systems. The adoption of a new system can add costs in the form of mistakes made or precautionary measures taken. But time and experience with new tillage systems that reduce soil erosion should improve the long-term yield potential and profitability of the farm.

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Updates on Soil Management and Fertilizer Use: Economics of Conservation Tillage (Production Costs)

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• Soil Management

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