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European Review of Agricultural Economics Advance Access originally published online on April 10, 2006
European Review of Agricultural Economics 2006 33(2):193-221; doi:10.1093/erae/jbl003
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2006; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org

No-till technology: benefits to farmers and the environment? Theoretical analysis and application to Finnish agriculture

Jussi Lankoski

Agrifood Research Finland, Helsinki, Finland (and OECD, Paris, France; years 2005–2006)

Markku Ollikainen

University of Helsinki, Helsinki, Finland

Pekka Uusitalo

Agrifood Research Finland, Helsinki, Finland

Corresponding author: Markku Ollikainen, Department of Economics and Management, P.O. Box 27, FIN-00014, University of Helsinki, Helsinki, Finland. Phone: +358 9 19158065. Fax: +358 9 19158096. E-mail: markku.ollikainen{at}helsinki.fi

Received March 2004; final version received February 2006

We assess theoretically and empirically the private profitability and social desirability of conventional tillage and no-till when crop yields, production costs and nutrient and herbicide runoff damages are taken into account. Based on Finnish experimental data, no-till provides higher social and private profit than conventional tillage for barley but not for oats and wheat, for which the production cost advantage of no-till does not compensate for lower yields in the private optimum. As regards social returns, no-till provides slightly better overall environmental performance but, given the existing valuation of nutrient and herbicide runoff damage, this is not enough to give no-till an advantage in oats and wheat cultivation. Thus, the key factors determining the private and social profitability of no-till and conventional tillage are yields and production costs rather than environmental performance.

Keywords: agri-environmental policy, buffer strips, herbicide runoff, nutrient runoff, tillage


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