Farm-level risks and returns were examined for corn and soybeans grown in rotation using three conservation tillage systems. A conventional moldboard plow system served as a benchmark. Potential economic incentives and barriers to adoption of conservation tillage were identified and measured. Short-run economic criteria favored conventional and full-width tillage systems. Higher residue systems were competitive after reallocation of labor and capital. Results indicate that short-run economic penalties may inhibit adoption of conservation tillage.
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Jolly et al. (1983) studied this question.
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