Economies of Size for Conventional Tillage and No-till Wheat Production

2,560-acres). Estimated costs depend upon the assumptions made regarding machine selection
and custom applications.

Estimated operating costs for the two small farms were approximately $16 per acre
greater for the no-till system. The two small no-till farms require $11.25 per acre more herbicide
and $11 per acre more custom application, but save about $7 per acre in fuel, lube, and repairs
and $6 to $7 per acre in machinery fixed costs. The estimated total operating and machinery
fixed costs are $10 per acre greater for the 320 and 640-acre no-till farms than for the
corresponding conventional tillage farms.

For the two large farms, estimated operating costs for the no-till system are $5 to $6 per
acre more than for the conventional tillage system. For these farms no-till requires $11.25 per
acre more for herbicide and saves $6 to $7 per acre in machinery fuel, lube, and repairs, and $7
to $12 per acre in machinery fixed costs. Estimated total operating plus machinery fixed costs
are $3 per acre greater for the conventional tillage 1,280-acre and 2,560-acre farms.

These results suggest that the reduction in the price of glyphosate has changed the cost of
no-till relative to the cost of conventional tillage for continuous monoculture wheat production.
Previous studies have found that no-till was more costly. The limited use of no-till for wheat
production in the region provided credence for these earlier findings. However, the reduction in
the price of glyphosate has clearly improved the relative economics of no-till.

A major limitation of this study is that yield differences and thus revenue have not been
considered. Research is warranted to determine relative yield differences between no-till and
conventional tillage given the availability of effective no-till drills and less expensive glyphosate.

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