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SWEEP Report #64

Volume III.
Field Level Economic Analysis of Changing
Tillage Practices in Southwestern Ontario

Deloitte & Touche Management Consultants, Guelph, Ont.

Executive Summary

View / Download Final Report  [134 KB pdf]



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Completed: May, 1994

Executive Summary

This report contains the technical background data and analysis pertaining to the field level economic analysis of the Soil and Water Environmental Enhancement Program (SWEEP).

The analysis was conducted in two steps. The first step involved deriving a "representative" set of operations and inputs for each crop rotation and tillage method in each of the three pilot watersheds. The second step consisted of developing a partial budget to compare costs, net returns, and the opportunity cost of labour for each set of operations.

Results from this study indicate that soil conserving technologies are competitive, and in fact often generate higher net financial returns. The economic advantages of conservation tillage practices, especially no-till, are magnified when considering the opportunity cost of labour. While net returns between conservation and conventional tillage practices are comparable, labour requirements are much lower for conservation practices resulting in significantly higher returns per labour hour. Furthermore, based on yield estimates from several sources, the financial risk associated with soil conservation practices is similar to conventional tillage practices when comparing net returns per hectare, but are statistically lower when considering net returns per hour.




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Created: 05-28-1996
Last Revised: Thursday, May 19, 2011 05:52:47 PM