An Economic Analysis of No-Till Rotations and Effects on Carbon Sequestration and Long Term Sustainability of Agriculture

Abstract

This study summarizes key economic results from 100 different no-till (NT) crop rotations and a conventional (CT) corn-soybean rotation based on agronomic data from Brookings County, South Dakota for 2001 -2008. A 1200 acre model crop farm was constructed to conduct the farm management budget and simulation analyses. Results indicate: (1) the CT rotation had the highest average net returns, (2) Several four-crop no-till rotations were preferred as producer risk aversion increased, and (3) carbon credit payments would need to be $14 to$36 per acre for the top four NT rotations to be as profitable as the CT rotation.No-till crop systems, Stochastic simulation, Carbon Credit Payments, Farm Management, Production Economics, Q12,