An economic analysis of farmer decisions with respect to soil erosion in Saskatchewan

Abstract

A dynamic economic model is used to evaluate the far.m decision process with respect to the intensity of cropping in the Brown Soil Zone of Saskatchewan. Based on this model, and several agronomic relationships estimated from data collected as part of the Innovative Acres project, we each the following conclusions: (1) Flexible cropping increases net discounted returns and substantially reduces soil erosion, when compared to the predominant crop rotation in the region, ( 2) Unless soils are already substantially eroded, conventional summerfallow is preferred to chem-fallow by profit maximizing decision makers, and (3) The overall risk of flex-cropping may be less then the traditional rotations used in the study region.