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document Historic, archived Do not assume content reflects current scientific knowledge, policies, or practices. Reserve |aS604 .E26 1998 Economic and Environmental Benefits and Costs of Conservation Tillage Economic Research Service U.S. Department of Agriculture In collaboration with the Natural Resources Conservation Service U.S. Department of Agriculture USDA izii USDA^tionaiAgric^Ub^ 1 Baltimore Blvd MD BeitsviHe, 20705-2351 The Economic and Environmental Benefits and Costs of Conservation Tillage. U.S. Department of Agriculture, Economic Research Service in collaboration with the Natural Resources Conservation Service. Abstract Conservation tillage is an important conservation practice that can significantly reduce soil erosion. Use ofconservation tillage produces significant benefits to farmers and the Nation by reducing soil erosion and mitigating potentially adverse off-site impacts on water quality and wildlife habitat. Gains from further adoption on highly erodible land are estimated to be — modest a testament to the success ofthe switch to conservation tillage so far. Looking to the future, questions remain about the valuation of benefits associated with soil quality, wildlife habitat, and carbon sequestration. Moreover, continued use or expansion ofconservation tillage may be very sensitive to changes in Federal program provisions, especially those related to compliance-type mechanisms. Washington, DC 20036-5831 February 1998 Contents Executive Summary in Introduction I. 1 Conservation Tillage in Historical Context 2 References 3 II. Current Status ofConservation Tillage 5 Definition ofConservation Tillage 5 Conservation Tillage Data 6 Trends in Conservation Tillage Use 7 Factors Affecting Conservation Tillage Adoption and Use 10 Conclusion 13 References 13 Figures 16 Tables 17 III. Benefits and Costs ofConservation Tillage 22 Measuring the Benefits and Costs ofConservation Tillage 23 The Economic Benefits and Costs to Farmers ofConservation Tillage Adoption 23 Environmental Benefits and Costs ofConservation Tillage 31 Conclusion 41 References 41 Figures 50 Tables 52 IV. Conservation Tillage: The Role of Public Policy 70 Policies Designed to Affect the Adoption ofSpecific Production Practices ... 70 USDA Soil Conservation Policies 72 Policy Impacts on the Adoption ofConservation Tillage 76 Conclusion 78 References 79 Tables 83 V. Summary 85 References 86 — Appendix Technical Definitions 87 The Economic and Environmental Benefits and Costs of Conservation Tillage Summary Executive In their reports on the FY 1997 Agriculture, Rural Development, Food and Drug Administration, and RelatedAgencies Appropriations Bill (House Report 104-61 3, Senate Report 104-317), both the House and Senate Appropriations Committees requested that ERS, in cooperation with NRCS, do a comprehensive study ofconservation tillage. Specifically: The Committee directs the Economic Research Service, in cooperation with the Natural Resources Conservation Service, to do a comprehensive study ofconservation tillage. The study should include the current status ofconservation tillage and the benefits to agriculture, the environment, and society as a whole, as well as recommendations concerning what actions are needed to increase the use of conservation tillage and estimates ofthe benefits and costs ofdoing so. This report is in fulfillment ofthat request. Soil erosion from U.S. cropland has long been recognized as a national problem. Concern initially focused on the loss of fertile topsoil and fear that agricultural productivity would decline. More recently, there has been a growing understanding ofhow soil erosion can — — impair water quality, as sediment often mixed with agricultural chemicals enters rivers, lakes, and streams. Conservation tillage is an important conservation practice that can significantly reduce soil erosion. Use ofconservation tillage produces significant benefits to farmers and the Nation by reducing soil erosion and mitigating potentially adverse off-site impacts on water quality and wildlife habitat. Gains from further adoption on highly erodible — land are estimated to be modest a testament to the success ofthe switch to conservation tillage so far. Looking to the future, questions remain about the valuation of benefits associated with soil quality, wildlife habitat, and carbon sequestration. Moreover, continued use or expansion ofconservation tillage may be very sensitive to changes in Federal program provisions, especially those related to compliance-type mechanisms. Conservation tillage is a tillage system that leaves enough crop residue on the field after harvest to protect the soil from erosion. Types ofconservation tillage include mulch tillage, ridge tillage, and no-tillage. In addition to reducing soil erosion and improving water quality, other benefits ofconservation tillage include improving quality ofagricultural soil by increasing organic matter, sequestering carbon, and providing habitat and food for wildlife. The use ofconservation tillage increased from 2 percent of planted acreage in 1968 to nearly 36 percent of planted acreage in 1996. Conservation tillage is most commonly used on soybeans, corn, and small grains. More than 40 percent oftotal corn and soybean planted acreage in 1996 was conservation tilled. Where double-cropping was used, nearly 70 percent ofsoybean acreage, 46 percent ofcorn acreage, and 37 percent ofsorghum acreage employed conservation tillage systems. Other important crops, like peanuts, potatoes, beets, tobacco, and vegetables, have also improved residue management and erosion control, even though their cultural practices preclude the use ofconservation tillage. The adoption ofconservation tillage varies widely across States and regions. In 1996, Kentucky led the Nation in conservation tillage, with an adoption rate of73 percent; Delaware, Iowa, Maryland, Missouri, Nebraska, and Tennessee all had between 50 and 63 percent ofcropland conservation-tilled. Arizona, Florida, Massachusetts, Rhode Island, and The Economic and Environmental Benefits and Costs of Conservation Tillage