Graduate Thesis Or Dissertation
 

An economic analysis of the onsite benefits and costs of reducing soil erosion through conservation tillage in the Camas Prairie region of northern Idaho

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  • The onsite costs and benefits of conservation tillage in the Camas Prairie Region of Northern Idaho were estimated. The evaluation of these costs and benefits included a measurement of the long-term effects of soil erosion on cropland productivity. A model developed by Daniel Taylor (1982) was used as a base for estimating the onsite costs and benefits of conservation tillage. Although the agronomic relationships of this model were theoretically and empirically consistent, the variable and depreciation cost trends were not. Therefore, this model was revised. A technique for generating site-specific variable and depreciation costs was developed and incorporated into the original Taylor model. The depreciation cost calculation was modified to include Salvage value and modified to correspond with the crop yields used in this analysis. An algorithm to model changes in output prices was added to the model. Heavy tillage, reduced tillage, and no-till were simulated. Reduced tillage was projected to be the most profitable tillage system for farmers with planning horizons of 75 years or longer and personal discount rates of under 7%. Heavy tillage was projected to be the -most profitable tillage system for farmers with planning horizons shorter than 75 years. No-till was always the least profitable tillage system, although the highest yield projections were produced under no-till. A summer fallow crop rotation was simulated and the results were compared with the results of an annual cropping rotation. The summer fallow rotation was projected to be less profitable than the annual cropping rotation. No-till and reduced tillage subsidization and cross compliance pricing were examined as two potential policies which could be used to induce farmers to adopt conservation tillage. Subsidies ranged from zero to $22.97 per acre annually, depending on the planning horizon and personal discount rate of the farmer. Cross compliance prices 11% higher than the normalized prices used in this analysis were needed to induce farmers to adopt no-till practices.
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