Does Ridge Till Net More
I was browsing the soybean net income statistics reported by the University of Minnesota for the 2011 crop year. There were 1,372 farms reporting soybean statistics for 2011 and 680 used some type of chisel or reduced tillage (635 gave no answer on tillage practice). These farmers reported an average of $147 return over direct expenses per acre. However, the 11 farmers reporting using ridge till increased their gross return by about $60 per acre and their net return by $30 (even with cash rents averaging almost $40 higher).
Although the sample size is too small to be totally meaningful and with higher cash rents suggesting better ground, it is still productive to review these reports each year and determine the trend. If you get a rolling five years of history and one method of farming consistently out-yields the standards in your area (or your farm), it may be wise to consider trying the method on a couple of test plots. These tests may give you the knowledge to make an educated change and join the farmers in the top tier.
Paul Neiffer CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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