Conservation - Economics

Is it possible to get conservation provisions in a lease?

Yes. It is not only possible, but it is desirable.  A tenant and landlord should include soil conservation practices as a part of their lease negotiation.  Provisions to cover the interest of both parties can be put in writing in the lease.  For examples of areas to consider go to the Ag Decision Maker home page at: www.extension.iastate.edu/agdm.   This web site contains a wealth of general information and specific information for leases and lease arrangements.

Iowa farmland is increasingly being owned by older people. How will this change in demographics effect conservation practices?

Approximately one-fourth of Iowa’s land is owned by people over 75 years old.  Most of them indicate they will pass the land to their children.  This indicates a likely increase in absentee ownership, as the land is divided among the children, many of whom will not live in Iowa.  Preliminary studies seem to indicate that an increase in absentee ownership will not automatically lead to a decrease in soil conservation.  Most farmers will farm the land in a similar manner whether it is owned or rented.

One of the big differences is that renters will tend to take a shorter term point of view when it comes to implementing conservation practices.  Their control of the land is less certain and thus they are less likely to want to make long term commitments.  Whether or not landlords are diligent in ensuring their long-term interest is honored remains to be seen. 

Will I see a yield decrease from no-till?

Any new practice comes with a learning curve, therefore results in the first years of no-till may vary.  Experienced ILF cooperators report average yield reductions of 5-6 percent in corn and actually experience higher average soybean yields with no-till practices. 

More importantly, even with a lower yield, no-till can be more profitable because less labor, fuel, and machine hours went into producing the crop.   Generally, less equipment and horsepower is needed for no-till systems, so the fixed costs of your system can be reduced as well.

Other Resources:

For information about the Conservation Reserve Program:
CRP: It's in Your Hands (USDA-NRCS)

For information about financial and technical assistance for conservation programs:
A Guide to Conservation Programs for Iowa's Landowners (USDA-NRCS)

For information about RUSLE2:
RUSLE2 Overview
http://www.ia.nrcs.usda.gov/technical/RUSLE2.html

Department of Ecomonics, Iowa State University