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Economic analysis of conservation farming systems for eastern Oregon wheat production

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  • There is growing concern among producers regarding the sustainability of current dryland winter wheat cropping practices. This study looks at the economic viability of three wheat rotations currently being studied at the Columbia Basin Research Center in Pendleton, Oregon, including W IF and two alternative rotations, W/B/F and C/W/F. The cropping system budgets were built using the Microcomputer Budget Management System (MBMS). The budgets of all three systems showed negative net returns. The C/W IF has the smallest negative returns and the canola crop alone has positive returns. The W /B/F rotation has higher gross revenue than the W IF but it does not offset the higher costs of including a second crop. Price sensitivity analysis revealed that the negative returns would not rise unless large price changes were realized. Yield sensitivity showed that only canola net returns could be expected to become positive under reasonable yield increases. An initial analysis of the impact of the FAIR Act was made using estimated transition payments and forecasted, annual average crop prices. Even with the FAIR Act transition payments the net returns of these systems did not become positive. This study found that the alternative cropping systems of W/B/F and C/W/F were not economically profitable under current market conditions. However, the short-term losses incurred under the C/W/F may be less than W/F, the traditional cropping system in the study area.
  • Published May 1999. Facts and recommendations in this publication may no longer be valid. Please look for up-to-date information in the OSU Extension Catalog: http://extension.oregonstate.edu/catalog
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