| The objective of this study is to improve the understanding of the relationship between no-till practice and the economics of grain farms in Illinois. More specifically, the study determines the magnitude and significance of changes in cost share brought about by a change in tillage practice, peruses the relationship between prices, input use and tillage practice, determines the magnitude of pure technical, scale and technical efficiencies, and assesses the significance of changes brought by no-till and assesses the influence of changes in efficiency frontier structure and temporal data aggregation on efficiency scores and regime. The study reveals that with the switch to no-till, significant changes in pesticide, fuel, and machinery repair expenses do occur. There is no evidence of any change in the demand of farm inputs that can be associated with tillage practice. The study also finds no evidence of a significant change in pure technical, scale or total technical efficiency. These results are robust to change in frontier specification as well as changes in data aggregation.; For farmers, estimates of changes in input expenditures as well as cost share can provide beneficial additional information in planning and budgeting activities. Marketers, confronted with the question of whether or not to segment the farmer's market with respect to tillage practice, might benefit from the analysis done concerning reaction to price changes. The knowledge that efficiency regime does not change with tillage practice is important for policy makers, who constantly have to assess the potential effects of new technologies and practices not only on the ability of farmers to feed the nation, but also on the ability of U.S. agriculture to compete in a world economy. |
