U.S. flagAn official website of the United States government
                    Here's how you know **Official websites use .gov**
                            
                            A **.gov** website belongs to an official government organization in the United States.
 **Secure .gov websites use HTTPS**
                            
                            A **lock** (                            
                              A locked padlock                                                      
                            
                            ) or **https://** means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.


Menu Agricultural Research Service
						
                    U.S. DEPARTMENT OF AGRICULTURE
 close



Research
                Research Home
                            National Programs
                            Research Projects
                            Scientific Manuscripts
                            International Engagement
                            Scientific Software/Models
                            Databases and Datasets
                            Office of Scientific Quality Review
            Media
                News & Features
                            Multimedia
                            Briefing Room
                            Down on the Farm
                            Press Room
                            Science in Your Shopping Cart
                            Scientific Discoveries
                            Tellus
                            Under the Microscope
            About ARS
                About ARS Home
                            Staff Directory
                            Labs and Research Centers (Map)
                            Headquarter Offices
                            Organizational Chart
                            Employee Services (REE Employees Only)
                            Office of Outreach, Diversity, and Equal Opportunity
            Work With Us
                Work With Us Home
                            ARS Vacancies at USAJOBS
                            Careers at ARS Information
                            Scientific Collaborations
                            Extramural Agreements
                            1890 Faculty Research Sabbatical ProgramSearch small
                    Search
            
            ARS Home
                                About ARS
                                Contact Us




ARS Home Research Publications at this Location





- ARS National Programs
- Search for a scientific manuscript
- Search for a research project
- ARS Software
- Programs and Projects
- Collaborations
- Subjects of Investigation
- Publications

Title:   Author  item
                                            Fathelrahman, Eihabitem
                                            Ascough Ii, Jamesitem
                                            HOAG, DANA - COLORADO STATE UNIVERSITYitem
                                            Malone, Robert

                                                         - *Rob*item
                                            Heilman, Philip

                                                         - *Phil*item
                                            Wiles, Loriitem
                                            KANWAR, RAMESH - IOWA STATE UNIVERSITY
  Submitted to: Experimental Agriculture
                                    Publication Type: Peer Reviewed Journal
                                    Publication Acceptance Date: 10/23/2010
                                    Publication  Date: 1/26/2011
                                    Citation: Fathelrahman, E.M., Ascough II, J.C., Hoag, D.L., Malone, R.W., Heilman, P., Wiles, L., Kanwar, R.S. 2011. An economic and stochastic efficiency comparison of tillage systems in corn and soybean under risk. Experimental Agriculture. 47(1):111-136.Interpretive Summary: This study evaluates the efficacy of the stochastic efficiency with respect to a function (SERF) methodology for conventional and conservation tillage systems using 14 years (1990-2003) of economic budget data collected from 36 plots at the Iowa State University Northeast Research Station near Nashua, IA.  We use the SERF approach examine which of four different tillage systems (chisel plow, moldboard plow, no-till, and ridge-till) on continuous corn and corn/soybean cropping systems are the most risk-efficient in terms of maximizing economic profitability (gross margin and net return) across a range of risk aversion preferences. In addition to the SERF analysis, we conduct an economic analysis of the tillage system alternatives using simple statistical measures such as mean, standard deviation, and skewness for ranking purposes.  The Stop Light approach for analyzing and visually displaying probabilistic information contained in the tillage system cumulative density functions (CDFs) is also demonstrated.  Statistical analysis of the economic measures alone provided contradictive and non-conclusive rankings. SERF analysis results were dependent on the crop (corn or soybean), economic outcome of interest (gross margin or net return), and the level of risk aversion.  The moldboard plow tillage system was preferred across the entire range of risk aversion for the corn gross margin analysis, and the no-till (soybean gross margin), ridge-till (corn net return), and moldboard plow (soybean net return) tillage systems were preferred at lower levels of risk aversion but not at higher levels.  For the Stop Light analysis, the moldboard plow tillage system was preferred regardless of decision maker objective to minimize risk or maximize gross margin or net return.
                                Technical Abstract: Recently, a new method of stochastic dominance called stochastic efficiency with respect to a function (SERF) has been developed.  Unlike traditional stochastic dominance approaches, SERF uses the concept of certainty equivalents to rank a set of risk-efficient alternatives instead of finding a subset of dominated alternatives. This study evaluates the efficacy of the SERF methodology for conventional and conservation tillage systems using 14 years (1990-2003) of economic budget data collected from 36 plots at the Iowa State University Northeast Research Station near Nashua, IA.  Specifically, the SERF approach is used to examine which of four different tillage systems (chisel plow, moldboard plow, no-till, and ridge-till) on continuous corn and corn/soybean rotation cropping systems are the most risk-efficient in terms of maximizing economic profitability (i.e., gross margin and net return) by crop across a range of risk aversion preferences.  In addition to the SERF analysis, we conduct an economic analysis of the tillage system alternatives using simple statistical measures such as mean, standard deviation, and skewness for ranking purposes.  Finally, we demonstrate the use of a complementary method, the Stop Light approach, for analyzing and visually displaying the probabilistic information contained in the tillage system cumulative density functions (CDFs).  Statistical analysis of the economic measures alone provided contradictive and non-conclusive rankings (e.g., examination of the gross margin and net return means for corn and soybean showed that each of the tillage system alternatives was the highest ranked depending on the crop). SERF analysis results were also dependent on the crop (corn or soybean), economic outcome of interest (gross margin or net return), and the level of risk aversion.  The moldboard plow tillage system was preferred across the entire range of risk aversion for the corn gross margin analysis.  For the other SERF analyses, the no-till (soybean gross margin), ridge-till (corn net return), and moldboard plow (soybean net return) tillage systems were preferred at lower levels of risk aversion but not at higher levels.  For the Stop Light analysis, the moldboard plow tillage system was preferred regardless of whether the objective of the decision maker is to minimize risk or maximize gross margin or net return.


Return to top


Connect with ARS Sign up


ARS Home
                            USDA.gov
                            Plain Writing
                            Policies & Links
                            Civil Rights Statements
                            FOIA
                            Accessibility Statement
                            Privacy Policy
                            Non-Discrimination Statement
                            Quality of Information
                            USA.gov
                            WhiteHouse.gov