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Farm economic and environmental effects of reduced tillage

Abstract Reduced tillage is an increasingly popular farming method. In some countries it is used on up to 50% of the total cropland, but in Denmark the area with reduced tillage is only 10%. The benefit from reduced tillage is a higher marginal profit per ha due to an increased productivity of labour and machinery, but there are also environmental benefits e.g. reduced phosphorus and nitrogen losses as well as reduced Greenhouse Gas emissions. In a recent Danish research project, the economic and environmental effects of reduced tillage have been analysed by using a farm economic crop production model, simulating arable farmers’ rational adjustment to new technologies, prices and regulations. The conclusion is that reduced tillage increases the profits by € 67–111 per ha according to farm size and it reduces the use of fuel per ha. With no changes in the crop rotation, the nitrogen surplus is unaffected and pesticide use is increased. However, the optimal adaptation to reduced-tillage systems includes a change in the crop rotation increasing the share of spring cereals. As a result of this adjustment, the nitrogen surplus is reduced and the increase in pesticide use is, to some extent, mitigated. Even when no increase in pesticide use is permitted the reduced tillage system seems to be more profitable than conventional tillage systems.