Economics of wheat residue management in doublecrop soybean

Residue management plays an important role in soil conservation. While conservation advocates encourage residue retention, Arkansas wheat (Triticum aestivum L. em Thell)-soybean [Glycine max (L.) Merr.] growers prefer burning of their wheat straw. Little information exists on the profitability and risk-efficiency of alternative wheat residue management options on soybean production. The objective of this study was to investigate the economic implications of leaving or burning wheat residue on the production of doublecrop soybean. Data from residue management experiments in Arkansas between 1992 and 1995 were used for this study. Net returns to different production arrangements for the soybean component of the system were estimated from enterprise budgets. Stochastic dominance analyses were used to identify appropriate production strategies based on net returns and risk preferences. Results indicated that the effects of leaving or burning wheat residue would depend on the complement of production systems used. Net returns could range from a high of $171/acre to a net loss of $45/acre depending on the production system, experimental location, and year. Focusing exclusively on the partial returns to soybean component, residue retention generally improved returns in fields that were tilled prior to planting while burning of wheat residue was a superior strategy under no-till (NT) systems. Stochastic dominance results showed that fields with tillage were preferred to NT fields, while the appropriate production systems would integrate preplant tillage with wheat residue retention under narrow row spacing arrangements.