Managing the Economics of Soil Salinity
Saline soils result in decreased crop growth and yield with the potential for losing productive farm land. Enterprise budget analysis was extended to include the fixed costs of installing tile drainage to manage soil salinity in the Red River Valley of North Dakota for corn, soybeans, wheat, sugar beets, and barley. Installing tile drainage to manage soil salinity decreased per acre crop profitability from 19-49% due to the large upfront capital investment of tile drainage. These losses can be decreased to zero with more consistent and predictable yields from tile drainage in the intermediate to long run. With no salinity management lost revenues were estimated to be $150 million due to 1.2 million acres of slightly saline soils and 275,000 acres of moderate soil salinity.
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- Pannell, David J., 2001. "Dryland salinity: economic, scientific, social and policy dimensions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), December.
- Marshall, Graham R. & Jones, Randall E., 1997. "Significance of supply response for estimating agricultural costs of soil salinity," Agricultural Systems, Elsevier, vol. 53(2-3), pages 231-252.
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