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No-till technology: benefits to farmers and the environment? Theoretical analysis and application to Finnish agriculture

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  • Jussi Lankoski
  • Markku Ollikainen
  • Pekka Uusitalo

Abstract

We assess theoretically and empirically the private profitability and social desirability of conventional tillage and no-till when crop yields, production costs and nutrient and herbicide runoff damages are taken into account. Based on Finnish experimental data, no-till provides higher social and private profit than conventional tillage for barley but not for oats and wheat, for which the production cost advantage of no-till does not compensate for lower yields in the private optimum. As regards social returns, no-till provides slightly better overall environmental performance but, given the existing valuation of nutrient and herbicide runoff damage, this is not enough to give no-till an advantage in oats and wheat cultivation. Thus, the key factors determining the private and social profitability of no-till and conventional tillage are yields and production costs rather than environmental performance. Copyright 2006, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 33 (2006)
Issue (Month): 2 (June)
Pages: 193-221

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Handle: RePEc:oup:erevae:v:33:y:2006:i:2:p:193-221

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Cited by:
  1. Sasaki, Hiroki, 2010. "Relationships between Agricultural policies and Environmental Effects in Japan: An Environmental-Economic Integrated Model Approach," 120th Seminar, September 2-4, 2010, Chania, Crete, European Association of Agricultural Economists 109399, European Association of Agricultural Economists.
  2. Ervola, Asta & Lankoski, Jussi E. & Ollikainen, Markku, 2010. "Mitigation options and policies in agricultural sector: a theoretical model and application," 120th Seminar, September 2-4, 2010, Chania, Crete, European Association of Agricultural Economists 109320, European Association of Agricultural Economists.
  3. Lankoski, Jussi E. & Ollikainen, Markku, 2011. "Counterfactual Approach for Assessing Agri-environmental Policy: The Case of the Finnish Water Protection Policy," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 114404, European Association of Agricultural Economists.
  4. Lankoski, Jussi E. & Ollikainen, Markku, 2009. "Biofuel policies and the environment: the effects of biofuel feedstock production on climate, water quality and biodiversity," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51677, International Association of Agricultural Economists.
  5. Laukkanen, Marita & Nauges, Celine, 2010. "Environmental and production cost impacts of no-till: Estimates from observed behaviour," 114th Seminar, April 15-16, 2010, Berlin, Germany, European Association of Agricultural Economists 61077, European Association of Agricultural Economists.
  6. Ervola, Asta & Lankoski, Jussi E. & Ollikainen, Markku, 2011. "Agriculture and Climate Change: Socially Optimal Production and Land Use," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 114339, European Association of Agricultural Economists.
  7. Jolejole, Christina B. & Swinton, Scott M. & Robertson, G. Philip & Syswerda, Sara P., 2009. "Profitability and Environmental Stewardship for Row Crop Production: Are There Trade-offs?," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 50920, International Association of Agricultural Economists.
  8. Iho, Antti & Laukkanen, Marita, 2009. "Dynamically Optimal Phosphorus Management and Agricultural Water Protection," Discussion Papers, MTT Agrifood Research Finland 54285, MTT Agrifood Research Finland.
  9. Lankoski, Jussi & Ollikainen, Markku, 2011. "Biofuel policies and the environment: Do climate benefits warrant increased production from biofuel feedstocks?," Ecological Economics, Elsevier, vol. 70(4), pages 676-687, February.
  10. Marita Laukkanen & Céline Nauges, 2012. "Evaluating greening farm policies: A structural model for assessing agri-environmental subsidies," Working Papers 40, Government Institute for Economic Research Finland (VATT).

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