IDEAS home Printed from https://ideas.repec.org/p/ags/saea10/56354.html
   My bibliography  Save this paper

An Economic Risk Analysis of Tillage and Cropping Systems on the Arkansas Grand Prairie

Author

Listed:
  • Hignight, Jeffrey A.
  • Watkins, K. Bradley
  • Anders, Merle M.

Abstract

No-till (NT) has been shown to reduce fuel, labor, and machinery costs compared to conventional-till (CT) but very few rice producers in Arkansas practice NT. The low adoption rate is most likely due to difficulties in management but also limited information on the profitability and risk of NT. Most rice producers are knowledgeable on NT costs savings but consider it less profitable due to yield reductions offsetting costs savings. This study evaluates production costs, crop yields, and economic risk of both NT and CT in five rice-based cropping systems (continuous rice, rice-soybean, rice-corn, rice-wheat, and rice-wheat-soybean-wheat). Yields, crop prices, and key input prices are simulated to create net return distributions. Stochastic efficiency with respect to a function (SERF) is used to evaluate profitability and risk efficiency. Results indicate that a risk-neutral and risk-averse producer in either NT or CT would prefer a rice-soybean rotation. NT would be preferred over CT in the rice-soybean rotation across all risk preferences. Overall, risk-neutral producers would prefer NT in four of five cropping systems while risk-averse producers would prefer NT in three of five cropping systems.

Suggested Citation

  • Hignight, Jeffrey A. & Watkins, K. Bradley & Anders, Merle M., 2010. "An Economic Risk Analysis of Tillage and Cropping Systems on the Arkansas Grand Prairie," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56354, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea10:56354
    DOI: 10.22004/ag.econ.56354
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/56354/files/An%20Economic%20Risk%20Analysis%20of%20Tillage%20and%20Cropping%20Systems%20on%20the%20Arkansas%20Grand%20Prairie.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.56354?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Williams, Jeffery R. & Pachta, Matthew J. & Roozeboom, Kraig L. & Llewelyn, Richard V. & Claassen, Mark M. & Bergtold, Jason S., 2012. "Risk Analysis of Tillage and Crop Rotation Alternatives with Winter Wheat," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 561-576, November.
    2. Lyman, Nathaniel & Nalley, Lawton Lanier, 2013. "Stochastic Valuation of Hybrid Rice Technology in Arkansas," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142505, Southern Agricultural Economics Association.
    3. Goeringer, L. Paul & Goodwin, Harold L., Jr. & Dixon, Bruce L. & Popp, Michael P., 2012. "Envesting in an Agricultural Legacy: Impact of a Targeted Young and Beginning Farmer Loan Program in Arkansas," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124427, Agricultural and Applied Economics Association.
    4. Goeringer, L. Paul & Goodwin, Harold L., Jr. & Dixon, Bruce L. & Popp, Michael P., 2013. "EnVesting in an Agricultural Legacy: Design and Implementation of a Targeted Young and Beginning Farmer Loan Program in Arkansas," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143037, Southern Agricultural Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saea10:56354. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.