An Investment Comparison Between Conventional and Conservation Tillage Equipment for Cotton

Cotton is a capital intensive crop because of the specific inputs and equipment needed to produce and harvest high yield cotton.  When investing in equipment, farmers have a choice between traditional production equipment (conventional tillage) and reduced tillage equipment (conservation tillage).  Some farmers choose conservation tillage cotton production because of incentives from government programs, benefits to soil and water quality, and cost savings on labor and equipment.  Others have considered switching back to conventional tillage equipment because of pressure from herbicide-resistant weeds.  An investment comparison of conventional and conservation tillage production equipment was completed using the University of Georgia cotton enterprise budgets.  The impact of variable fuel and chemical prices on the investment decision were evaluated using a sensitivity analysis.  Breakeven yields and prices needed to realize a return on investment were also calculated.