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Risk Analysis of Tillage and Crop Rotation Alternatives with Winter Wheat

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  • Williams, Jeffery R.
  • Pachta, Matthew J.
  • Roozeboom, Kraig L.
  • Llewelyn, Richard V.
  • Claassen, Mark M.
  • Bergtold, Jason S.

Abstract

The economic feasibility of soybeans, grain sorghum, and corn in annual rotation with winter wheat using reduced tillage and no-tillage systems in the Central Great Plains was evaluated, with continuous wheat and grain sorghum also analyzed. Net returns were calculated using simulated yield and price distributions based on historical yields, two historical annual price series, and 2011 costs. Stochastic Efficiency with Respect to a Function was used to determine the preferred strategies under various risk preferences. The no-till wheat-soybean and reduced-till wheat-soybean systems are the first and second most preferred, regardless of the level of risk aversion.

Suggested Citation

  • 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.
    • Handle: RePEc:cup:jagaec:v:44:y:2012:i:04:p:561-576_02
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    References listed on IDEAS

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    5. Dustin L. Pendell & Jeffery R. Williams & Scott B. Boyles & Charles W. Rice & Richard G. Nelson, 2007. "Soil Carbon Sequestration Strategies with Alternative Tillage and Nitrogen Sources under Risk," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 247-268.
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    Cited by:

    1. Fan, Yubing & Himanshu, Sushil K. & Ale, Srinivasulu & DeLaune, Paul B. & Zhang, Tian & Park, Seong C. & Colaizzi, Paul D. & Evett, Steven R. & Baumhardt, R. Louis, 2022. "The synergy between water conservation and economic profitability of adopting alternative irrigation systems for cotton production in the Texas High Plains," Agricultural Water Management, Elsevier, vol. 262(C).
    2. Watkins, K. Bradley & Mane, Ranjitsinh U. & McClung, Anna, 2018. "Economic Risk Analysis of Rice Cultivars under Organic and Conventional Management," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266587, Southern Agricultural Economics Association.
    3. Vitale, Pilja P. & Epplin, Francis M. & Giles, Kristopher L. & Elliot, Norman C. & Burgener, Paul A. & Keenan, Sean P., 2014. "Crop Diversity on Traditional Great Plains Wheat Farms," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-15.
    4. 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.

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    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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