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Tillage and Planting Cost Comparisons

Tillage and Planting Cost Comparisons. Jayson K. Harper Professor of agricultural economics Department of Agricultural Economics and Rural Sociology The Pennsylvania State University, USA Penn State is committed to affirmative action, equal opportunity, and the diversity of its workforce.

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Tillage and Planting Cost Comparisons

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  1. Tillage and Planting Cost Comparisons Jayson K. Harper Professor of agricultural economics Department of Agricultural Economics and Rural Sociology The Pennsylvania State University, USA Penn State is committed to affirmative action, equal opportunity, and the diversity of its workforce

  2. Three systems to compare • Conventional tillageinvolves disking, plowing and other methods of tilling up crop residue left behind after harvest. • Conservation tillageis any method of soil cultivation that leaves the previous year's crop residue on fields before and after planting the next crop, to reduce soil erosion and runoff. To provide these conservation benefits, at least 30% of the soil surface must be covered with residue after planting the next crop. • No-till planting methods eliminate tillage entirely and leave 70% residue or more.

  3. Advantages of Conventional Tillage Buries crop residue Aerates the soil Provides mechanical weed control Incorporates fertilizer

  4. Advantages of Conservation Tillage Lowers fuel cost Lowers labor requirements Reduces machinery investment Reduces soil loss Conserves soil moisture Less soil compaction Improved timeliness

  5. What about system costs? Comparing the COST of Tillage and Planting Systems Conventional Reduced Cost ItemtillagetillageNo-till Seed, fertilizer same same same Herbicides, insecticides lowest ◄----- highest Machinery operating costs highest -----► lowest (fuel, labor, repairs) Total variable costs same same same Machinery ownership costs (depreciation, interest, highest -----► lowest insurance, housing) Total cost highest -----► lowest

  6. Machinery Operation and Ownership Costs Operation and Ownership Costs (€/ha) Conventional Reduced tillagetillageNo-till Moldboard plow € 30.50 - € 34.40 Chisel plow € 13.90 - € 16.80 Disk € 10.20 - € 17.30 € 10.20 - € 17.30 Field cultivator € 7.80 - € 10.20 € 7.80 - € 10.20 Boom sprayer € 4.40 - € 9.70 € 4.40 - € 9.70 € 4.40 - € 9.70 Planter (row) € 16.20 - € 18.00 € 16.20 - € 18.00 € 19.30 - € 21.90 Grain drill € 19.00 - € 20.20 € 19.00 - € 20.20 € 27.30 - € 32.50

  7. Machinery and EquipmentInvestment Costs Investment cost (€/m) Conventional Reduced tillagetillageNo-till Moldboard plow € 4,800 - € 5,600 Chisel plow € 2,300 - € 2,900 Disk € 3,100 - € 3,100 € 3,100 - € 3,100 Field cultivator € 2,100 - € 3,100 € 2,100 - € 3,100 Boom sprayer € 600- € 900 € 600- € 900 € 600- € 900 Planter (row) € 3,200 - € 4,300 € 3,200 - € 4,300 € 3,600 - € 4,900 Grain drill € 2,400 - € 3,400 € 2,400 - € 3,400 € 4,700 - € 5,700

  8. Machinery Fuel Consumption Fuel consumption (l/ha) Conventional Reduced tillagetillageNo-till moldboard plow 12.1 chisel plow 5.6 disk 4.6 4.6 field cultivator 3.0 3.0 boom sprayer 1.0 1.0 1.0 planter 3.2 3.2 5.0 drill 6.0 6.0 7.6

  9. Tools to assist farmers evaluate tillage system cost Data Input screen ----►

  10. Machinery Selection: Tillage equipment ----► Sprayers/spreaders ----► Planting equipment ----► Cost Comparisons ----►

  11. So…how can farmers afford to change planting systems? • Equipment rental or sharing • Dealer, government agency, farmer cooperative • Custom operator (hired service) • New technology without investment • Higher efficiency, improved timeliness • Retrofit existing equipment • Government conservation incentives? • Equipment cost share • Crop consultancy cost share • Cover crop subsidy/green farming incentives

  12. Summary • Conservation tillage has many production advantages over conventional tillage • Depending on the on-farm availability of labor, management, and capital, conservation tillage may have significant economic advantages over conventional tillage • Encourage farmers to use available farm management tools to help determine the economic benefits on their farming operation • Enterprise budgeting (cost of production) • Machinery cost analysis • Partial budgeting

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