Measuring the Risk of Shifting to No-Till

With more growers shifting to no-till or strip-till, the risks and impact on cash flow need to be weighed carefully — particularly with today’s tough economic times. Yet data from a recent University of Nebraska study shows 57% of farmers found cash flow increased by $77.52 per acre when switching to no-till on 2,400 acres of corn and soybeans.

When it comes to yields, 31% of these no-tillers reported an increase, 48% saw no change, 14% reported a decrease and 7% weren’t sure if anything changed, says Doug Jose, Nebraska farm management specialist. As a result, he says the risk of moving to no-till or strip-till is not a major worry, based on the fact 86% of farmers found profits increased or stayed the same.

34 Years, 23 Years

A long-time University of Missouri study conducted in the northwest area of the Show Me state demonstrates the favorable cash flow value when switching to no-till. Among four tillage systems, researchers found no significant differences with corn or soybean yields in these trials.

Jim Crawford, director at the Missouri Graves-Chapple Extension and Education Center, says the biggest benefit of no-till was the financial savings based on gross income minus the cost of each tillage practice with $4.50 corn.

Over 34 years, no-till corn averaged $14.21 per acre in extra gross income compared to a spring disc system, $62.52 more than a fall chisel/spring disc system and $56.51 more than discing in both the fall and spring.

With soybeans at $12 per bushel, 23 years of data shows no-till grossed $34.78 per acre more than a spring disc program, $92.52 more than a fall chisel/spring disc system and $71.22 per acre more than discing in both the fall and spring.

Better Cash Flow

By shifting to no-till with 1,200 acres of corn and 1,200 acres of soybeans, a grower could bank an additional $186,048 in yearly cash income by moving away from a more traditional fall chisel/spring disc system. It’s not a bad way to go in reducing costs, harvesting similar yields, protecting the environment and banking many more cash flow dollars with a shift to no-till.