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ECONOMIC SURVEY RESULTS AND REGRESSION ANALYSIS OF FIXED AND VARIABLE COSTS FOR THE AREAWIDE PEST MANAGEMENT PROGRAM by Christina Welch Stair, Peter Quan, and Marshall A. Martin Staff Paper #00-6 August 2000

Dept. of Agricultural Economics Purdue University

Purdue University is committed to the policy that all persons shall have equal access to its programs and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation.

ECONOMIC SURVEY RESULTS AND REGRESSION ANALYSIS OF FIXED AND VARIABLE COSTS FOR THE AREAWIDE PEST MANAGEMENT PROGRAM by Christy Welch Stair, Peter Quan, and Marshall A. Martin Dept. of Agricultural Economics, Purdue University West Lafayette, Indiana 47907-1145 [email protected] Staff Paper #00-6 August 2000

Abstract Economic questionnaires were administered in 1997 and 1998 to farmers in the Indiana/Illinois, Kansas, and Iowa sites involved in the Areawide Pest Management (AWPM) program for the control of corn rootworms. These questionnaires provided information regarding variable and fixed costs of production for fields located within the management site and also the companion acreage. The economic analysis indicated that yields, variable costs per acre, and machinery costs per acre were not statistically different within a site across the inner core, outer ring, and companion acreage, with relatively few exceptions. This gives a solid baseline for a Net Present Value comparison between the soil insecticide and AWPM methods for control of corn rootworms, since fixed and variable costs of production not associated with corn rootworm control can be assumed to be statistically the same between the inner core, outer ring, and companion acreage. Various information regarding farming practices among the sites was obtained from the economic questionnaires, such as adoption rates of GPS (site-specific farming) and Bt corn (resistant to the European corn borer). Other observations included soil insecticide use, crop rotations, tillage types, and crop consultant use.

Keywords: Staff working papers, Dept. of Agricultural Economics, Purdue University, Areawide Pest Management

Copyright  by Christina Welch Stair, Peter Quan, and Marshall A. Martin. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.

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ECONOMIC SURVEY RESULTS AND REGRESSION ANALYSIS OF FIXED AND VARIABLE COSTS FOR THE AREAWIDE PEST MANAGEMENT PROGRAM by Christy Welch Stair, Peter Quan, and Marshall A. Martin Introduction In 1997 and 1998, economic questionnaires were administered to farmers in the Indiana/Illinois, Kansas, and Iowa sites involved in the Areawide Pest Management program (AWPM) for control of corn rootworms. These questionnaires were used to obtain cost of production information that was necessary to complete the economic analysis of AWPM versus the traditional soil insecticide method. The goal of the economic analysis was to determine the financial profitability of AWPM in comparison to the use of soil insecticides. If agronomically and economically viable, the AWPM approach to control corn rootworm could be adopted by midwestern corn producers. The initial hypothesis is that in 1997, the first year of the AWPM program, fixed and variable costs of production should not be statistically different between fields located in each AWPM site (management fields) and the fields located outside of the corresponding AWPM site (companion fields). A second hypothesis is that fixed and variable costs of production should not be statistically different between fields located in the inner core (the central 4 square miles within each AWPM site) and fields located in the outer ring (the outer 12 square miles within each AWPM site that surrounds the inner core). If these hypotheses are proven to be valid, then any profit differentials that are calculated within the 8-year time frame used in the Net Present Value economic analysis can be attributed to the corn rootworm control method implemented. The goal of the economic survey and regression analysis is to test for any differences in costs between the soil insecticide approach and the AWPM approach, as well as cost differences between the inner core and outer ring, that are not attributed to the corn rootworm control method. Production costs (other than corn rootworm control costs) and farming practices are not expected to be different between the AWPM approach and the traditional soil insecticide method, or between the inner core and outer ring. If this is indeed the case and production costs and farming practices are assumed to be equal, then the economic analysis can focus solely on corn rootworm contol cost differentials without fear of influence from the previously listed factors which could affect control costs. The economic survey also was necessary to obtain other information from each site such as yield data, percentage of acreage to which soil insecticides were applied, as well as soil insecticide cost data. All information is used in the Net Present Value calculations in the AWPM cost analysis.1

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For a complete report on the Net Present Value analysis see Stair, Quan, and Martin, 2000, An Economic Analysis of Corn Rootworm Management: Areawide Pest Management Versus Soil Insecticides-A Net Present Value Approach. Paper presented at the 2000 AAEA meetings in Tampa, FL. 2

Quantitative Methodology (Quan, 1999) The economic questionnaire administered to farmers in the Indiana/Illinois, Kansas, and Iowa sites consisted of two parts. Part one was designed to obtain information regarding general farm characteristics such as: • § § § § § § §

Total acres farmed Percentage of the farm that was owned Crop acreage distribution among the total acres Tractors utilized on the farm Services received from a crop consultant and/or supplier or dealer Adoption of site specific practices (precision farming) Acreage receiving custom applications Source of soil insecticides

Part two of the questionnaire examined farming practices, yields, and input costs of acreage in the AWPM site as well as acreage using the traditional soil insecticide method. This portion of the questionnaire asked specific questions about each cornfield such as: § Tillable acres § Three year cropping history § Three year tillage history § Date planted, row width and seeds per acre § Soil insecticides used, application rate, and cost per acre § Herbicide, fertilizer, lime, irrigation, and seed costs per acre § Drying costs per bushel § Ownership of the field § Potential yield based on the past five years § Actual yield and source of yield estimate § Field operations § Selected corn input costs per acre, yield per acre, and machinery costs per acre were analyzed with regression analysis to determine if there were statistically significant differences between the inner core, outer ring, and companion acreage. The hypothesis is that if these variables are not statistically different in 1997, then any differences captured in subsequent years can mostly be attributed to the AWPM program. Regression Analysis Methodolgy A regression analysis can be used to determine if there is a statistical relationship between a dependent variable and two or more independent variables. The equation expressing the regression function is expressed as: Y = Bo + B1 X1 + B2 X2 + …+ BNXN + e Where: Y is the response, or dependent variable 3

XN are explanatory, or independent variables BN are regression coefficients (slopes of the regression line) e is the error (variation in Y not captured by the explanatory variables) The null hypothesis implies that all the regression coefficients are equal to zero (i.e., B1 = B2 …= BN = 0). The alternative hypothesis implies that at least one of the regression coefficients is not equal to zero. A whole-model F-test can be used to determine if the null hypothesis is true. If the null hypothesis is not true, then at least one of the explanatory variables explains the variation in Y. The outcome of the whole-model F-test is: H0 (null) if F* < F (1 - α; p-1, n-p) Ha (alternative) if F* > F (1 - α; p-1, n-p) Where: F* is the quotient of the regression mean square and the error mean square 1 - α is the confidence level n is the number of observations p is the number of parameters estimated A t-test can be used to determine if a given individual regression coefficient is statistically different from zero. The null hypothesis implies that the regression coefficient equals zero (BN = 0) and the alternative hypothesis implies that the beta coeffiecient does not equal zero. The qualifications for the t-test are: H0 (null) if t*  < t (1 - α/2; n-p) Ha (alternative) if t*  > (1 - α/2; n-p) Where t* is the quotient of the estimated beta coefficient and the estimated standard error. Qualitative variables represent non-continuous variables. In this case, each qualitative variable is assigned a zero or one, depending on that variable’s status, such as field location. Yield and costs are examples of continuous variables. For example: Y = Bo + B1 X1 + B2 X2 + B3 X3 + e Where: X1 = 1 if Inner Core, 0 if Outer Ring or Soil Insecticide Field X2 = 1 if Outer Ring, 0 if Inner Core or Soil Insecticide Field X3 = Farm Size 4

Y = Cost e = Error (variation in Y not captured by Xs) BN = Regression Coefficients This equation can be used to test if variables that affect cost are statistically different between the inner core, outer ring, and companion acreage. If none of the regression coefficients are statistically different from zero, then the dependent variables are not statistically different between the inner core, outer ring, and companion acreage. If one or more of the regression coefficients are statistically different from zero, then one or more of the dependent variables are statistically different between the inner core, outer ring, and companion acreage. In this study, farm size is one of the explanatory variables. Operators of larger farms might benefit from economies of size as they spread machinery costs over more acres and obtain price discounts for a larger volume of purchased inputs. Dummy variables (qualitative) are used to represent the inner core, outer ring, and companion fields to determine if the mean responses of each group are statistically different from each other. The issue here is if yields or costs differ among the fields in the groups established in the AWPM project. The hypothesis is that the selected corn input costs per acre and yield per acre for the inner core, outer ring, and companion fields should not be significantly different from each other in 1997. If this hypothesis is true, then any differences captured in the subsequent years can most likely be attributed to the AWPM program, assuming that farmers continue with the same production practices and input use in subsequent years. Indiana/Illinois Results, 1997 In 1997 there were 5100 corn acres and 4500 soybean acres in the Indiana/Illinois AWPM site. The companion acreage consisted of 980 corn acres and 700 soybean acres. Seventy-six percent of the farmers who grew corn in the AWPM site or companion acres responded to the questionnaire. The farms ranged from 135 to 3650 acres, with 75% between 500 and 2000 acres. Farmers operating 77% of the total acreage owned less than 25% of the land they farmed. The dominant crops were corn and soybeans (98% of the total crop acreage). The remaining acreage was planted to alfalfa/hay, pasture, small grains, and wheat. The percentage of acreage that used custom applicators to apply inputs was examined in the survey. Fertilizer was custom applied to 54% of the total acreage, herbicides were custom applied to 49% of total acreage, and insecticides were custom applied to 7% of the total acreage. Sixty-nine percent of the farmers reported they did not use site specific practices. Fourteen percent of the farmers took soil samples and applied fertilizer and/or lime without GPS. Only a small percentage (one farmer) used a yield monitor and applied fertilizer and/or lime with GPS (3%). A consulting service was used by 74% of the farmers, and a supplier/dealer service was used by 26%. Fertilizer recommendations and soil sampling were used on 19% and 17% of total acreage, respectively. 5

Scouting was not very prevalent in the IN/IL site in 1997. Insect and weed scouting were used on no more than 8% of the total acreage, as were herbicide and insecticide recommendations from crop consultants. Seventy-two percent of the farmers purchased a soil insecticide from a private retail input supplier, and 10% bought soil insecticides from a local cooperative. Indiana/Illinois Corn Production Practices, 1997 A corn/soybean rotation was common in the IN/Il site, with 82% percent of the cornfields planted to first-year corn, and only 13% to second year corn. The tillable acreage in the AWPM program that was share rented, owned, or cash rented was 45%, 29%, and 23%, respectively. The average cash rent was $119 per acre and the average share rent was 50%. Corn was planted on 30, 36, and 38 inch row spacing at 28,094, 27,192, and 25,935 seeds per acre on 58%, 27%, and 15% of the tillable acreage, respectively. Conservation tillage was very common, with 85% of total tillable acreage being farmed with this method. Only 13% of acreage was reported as no-till. Pest resistant varieties were not frequently used (gray leaf spot resistant varieties comprised 7% of total tillable acreage, and a Bt variety to control European corn borer was used on only 4%). (Note: Bt corn was only first available commercially in 1996). The average reported yield, mostly calculated with scale weight tickets (92%) was 143 bushels per acre. The average yield for this region in 1997 according to USDA-NASS was 133 bushels per acre. Soil insecticide application was very common in 1997, with only 27% reporting using no soil insecticide. The most commonly used soil insecticide was Lorsban (43%) followed by Counter and Fortress (16% and 11%, respectively). The average insecticide, herbicide, fertilizer, lime, and seed costs were $13.27, $23.24, $64.19, $10.60, and $27.35 per acre, respectively. Drying costs were $0.14 per bushel. Regression Analysis, Indiana/Illinois, 1997 At a 95% confidence level, average yield per acre, drying costs per bushel, and insecticide, herbicide, fertilizer, lime, and seed costs per acre were not significantly different among the companion, inner core, or outer ring acreage in 1997. However, a t-test, also using a 95% confidence level, revealed that farm size explains some of the variation in yield, lime, and seed costs. The regression results indicated that as farm size increases, the yield and lime costs per acre increase, but seed costs per acre decrease. Yields were higher for larger farms, suggesting better management and more timely field operations. Since larger farms tend to get bigger discounts when purchasing inputs, lower input costs were expected for larger farms. The higher lime costs per acre for larger farms was not expected, but could be due to the use of more lime than smaller farmers because of more effective soil testing, or perhaps higher nitrogen levels. Indiana/Illinois machinery fixed cost data were obtained for 59 fields (3255.7 acres) in the 1997 economic survey. Seventy-two percent, 20%, and 8% of the data collected were from fields located in the outer ring, inner core, and companion acreage, respectively. Recall that 61%, 24%, and 15% of the acres in the Indiana/Illinois site were in the outer ring, inner core, and 6

companion groups, respectively. A regression analysis based upon the machinery cost data indicated that the inner core, outer ring, and companion acreage did not have significantly different per acre machinery costs. Farm size was not a significant explanatory variable. The machinery costs for the Indiana/Illinois site were $45.35 per acre in the outer ring, $44.26 per acre in the inner core, and $41.73 for the companion acreage, excluding acreage reported to be custom farmed (Appendix D). These results suggest that differences in machinery use are not an important consideration in the Net Present Value economic analysis of the AWPM program. 1 Indiana/Illinois Results, 1998 In 1998 there were fewer corn and soybean acres in the Indiana/Illinois AWPM site than in 1997 (5061 and 4112 acres, respectively). The companion acreage consisted of 615 corn acres (less than 1997) and 744 soybean acres (higher than 1997). The response rate to the questionnaire was equal to the response rate in 1997 (76%) Farms ranged from 216 to 3650 acres, with 62% between 500 and 2000 acres. Farmers operating 69% of the total acreage owned less than 25% of the land they farmed. Corn and soybeans accounted for 93% of the total crop acreage, with the remaining acreage planted to alfalfa/hay, pasture, small grains, and wheat, seed corn. (A small percentage was in the Conservation Reserve Program). Custom application of inputs was common for fertilizer and herbicides, but not insecticides. Fertilizer was custom applied to 52% of the total acreage, herbicides were custom applied to 40% of total acreage, and insecticides were custom applied to only 2% of the total acreage, all of which were slightly lower than in 1997. Site-specific practices were more common in 1998 than 1997 (50% in 1998 versus 31% in 1997). Those that did report using sitespecific practices did so with soil sampling, variable rate applications of fertilizer and lime, field mapping, variable rate seeding, and/or a yield monitor. Fertilizer, chemical recommendations, and/or soil sampling were used on 38% and 31% of the total acreage. Seventy-nine percent of the farmers purchased a soil insecticide from a private retail input supplier, and 25% bought soil insecticides from a local cooperative, unchanged from the previous year. Indiana/Illinois Corn Production Practice, 1998 A corn/soybean rotation remained common in the IN/Il site in 1998, with 67% percent of the cornfields planted to first-year corn, and only 14% to second year corn. The tillable acreage in the AWPM program that was share rented, owned, or cash rented was 42%, 25%, and 23%, respectively. The average cash rent was $122 per acre, up $3.00 per acre from 1997. The average share rent was 50%, unchanged from the previous year. Planting populations were higher in 1998, with 32,300, 28,400, and 27,400 seeds per acre being used on 81%, 6%, and 13% of the tillable acreage for 30, 36, and 38 inch row spacing, respectively. Conservation tillage was even more widespread, with 92% of total tillable acreage being farmed with this method. Only 6% of the corn acreage was reported as no-till.

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Pest resistant varieties were still not frequently used, but percentages were slightly increased (a Bt variety to control European corn borer was used on 12% of total tillable acreage, a herbicide resistant variety on 7%, and a gray leaf spot resistant variety on 3%). The average reported yield, calculated with scale weight tickets (68%), personal estimates (12%), or a combination of methods (10%) was 154 bushels per acre. The USDA-NASS average yield for this region in 1998 was 144 bushels per acre. Soil insecticide application remained very common in 1998, and actually increased from 1997, with only 10% using no soil insecticides. This could be the result of a heavy infestation of corn rootworm in 1997.1 The most commonly used soil insecticide was Lorsban (40%) followed by Counter and Fortress (33% and 16%, respectively). Regent was used on 1% of the acreage. Fertilizer and lime costs were lower than in 1997, with the average insecticide, herbicide, fertilizer, lime, and seed costs were $14.24, $24.15, $50.86, $4.35, and $27.58 per acre, respectively. Drying costs were also lower at $0.06 per bushel. The corn harvest was relatively early in 1998 with good field dry-down. Regression Analysis, Indiana/Illinois, 1998 At a 95% confidence level, average yield per acre, as well as herbicide, fertilizer, lime, and seed costs per acre, was not significantly different among the companion, inner core, or outer ring acreage in 1998. However, the insecticide costs per acre and drying costs per bushel were significantly different between the inner core and companion acreage as well as between the outer ring and companion acreage. A t-test using a 95% confidence level revealed that as farm size increases, insecticide costs per acre increase and drying costs per bushel decrease. Insecticide and drying costs for the inner core and outer ring were significantly lower than the companion acreage. Larger farms might have larger, more efficient drying equipment, which would explain lower drying costs. The higher insecticide costs per acre were not expected. Since 10%, 26%, and 64% of the data for insecticide costs came from fields located in the companion acreage, inner core, and outer ring fields, respectively, the low representation of the companion acreage might have contributed to the significant difference that was detected due to insufficient data for the companion fields. A summary of the economic survey results follows (Table 1), and detailed survey results can be found in Appendix A.

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Table 1. 1997 and 1998 Economic Questionnaire Results for the Indiana/Illinois AWPM Site Management Corn/Soybean Acreage Companion Corn/Soybean Acreage Percent Respondents Percent Cornfields Farm Crops (% of total crop acres) Corn Soybeans Wheat Small grains Alfalfa/Hay Pasture Other Custom application service (% of total acres) Herbicide Fertilizer Insecticide Resistant Variety (% of total tillable acres) No pest resistant Gray leaf spot resistant Bt with European corn borer resistance Herbicide resistant Mixed No response Soil insecticide (% of total tillable acres) None Counter Fortress Lorsban Regent No response Inputs (weighted average cost per acre for those that responded) Insecticide Herbicide Fertilizer Lime Seed Drying (per bushel)

1997 5100/4500 980/700 76% 68%

No. of Responses

29 73

1998 5061/4112 615/744 76% 78%

No. of Responses

28 73

55% 43% 0.2% 0.2% 0.8% 0.5%

28 28 1 4 5 5

52% 41% 0.2% 0.1% 1.2% 0.7% 5%

28 29 2 3 6 7 3

49% 1% 7%

28 27 27

40% 52% 2%

28 27 21

72% 7% 4% 0.5% 16%

55 5 2 1 10

58% 3% 12% 7% 16% 5%

45 3 7 4 10 4

27% 16% 11% 43%

20 11 6 33

10% 33% 16% 40% 1%

7 23 9 33 1

0.3%

3

$13.27 $23.24 $64.19 $10.60 $27.35 $0.14

49 72 662 21 64 60

$14.24 $24.15 $50.86 $4.35 $27.58 $0.06

61 72 73 10 64 60

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Kansas Results, 1997 In 1997 there were 4246 corn acres in the Kansas AWPM site and 1307 corn acres in the companion site. There was a 74% response rate to the economic questionnaire. Farms ranged from 147 to 6300 acres, with 49% between 500 and 2000 acres. A larger percentage of the respondents owned the land they farmed in Kansas than in the Indiana/Illinois site, with Kansas farmers who owned less than 25% of the land they farmed comprising only 39% of total acreage. Corn was the dominant crop with 37% of total acreage, followed by wheat, pasture, soybeans, and sorghum (19%, 17%, 15%, and 9%, respectively). The remaining acreage was planted to alfalfa/hay and small grains. Herbicides were custom applied to 42% of the total acreage, fertilizers were custom applied to 37% of total acreage, and insecticides were custom applied to 8% of the total acreage. Seventy-six percent of the farmers reported they did not use site- specific practices. Seventeen percent of the farmers took soil samples without GPS. A consulting service was used by 48% of the farmers, and a supplier/dealer service was used by 7%. A number of farmers responding to the survey indicated they used consultants for soil sampling, insect/weed scouting, and recommendations for insecticides, herbicides, and fertilizers (12%, 12%, 11%, 11%, and 9%, respectively). Fifty-two percent of the farmers purchased a soil insecticide from a private retail input supplier, and 14% bought soil insecticides from a local cooperative. Thirty-one percent reported that they did not purchase a soil insecticide to control corn rootworm larvae. Kansas Corn Production Practices, 1997 Unlike the Indiana/Illinois site, the majority of the tillable acreage in Kansas was planted to continuous corn (50%) with only 20% percent planted to first-year corn. It was unclear whether the remaining 30% of tillable corn acreage was first or second-year corn. The tillable acreage in the AWPM program that was share rented, owned, or cash rented was 43%, 36%, and 14%, respectively. The average cash rent was $121 per acre and the average share rent was 45%. Tillage practices were different in Kansas than in Indiana/Illinois. Corn on 89% and 11% of the tillable acreage was planted on 30 and 36 inch row spacing at 28,182 and 23,381 seeds per acre, respectively. Ridge-till was used on 57% of the tillable acreage, followed by conservation tillage (36%), conventional tillage (5%), and finally no-till (2%). Pest resistant varieties were used by some Kansas farmers. Gray leaf spot resistant varieties comprised 17% of total tillable corn acreage, and a Bt variety to control European corn borer was used on 1%. Eleven percent of the tillable corn acreage was planted to more than one type of a pest resistant variety. The average reported yield, mostly calculated with scale weight tickets (77%) was 167 bushels per acre, which is greater than the yields reported in the Indiana/Illinois site. The average yield in 1997 for irrigated corn in this region according to USDA-NASS was 152 bushels per acre. Soil insecticide application was very common in 1997, with only 23% reporting no soil insecticide use. The most commonly used soil insecticide was Counter (33%) followed by 10

Force, Aztec, Furadan, and Fortress (11%, 4%, 2%, and 2%, respectively). There was no response for 24% of the tillable acreage. Irrigation was an additional input cost that was only present in the Kansas site. The average insecticide, herbicide, fertilizer, irrigation, and seed costs were $14.28, $19.45, $47.46, $35.00, and $31.81 per acre, respectively. Drying costs were $0.05 per bushel. Regression Analysis, Kansas, 1997 At a 95% confidence level, average yield per acre, as well as drying costs per bushel, herbicide, irrigation, and seed costs per acre, was not significantly different among the companion, inner core, or outer ring acreage in 1997. However, insecticide and fertilizer costs were significantly different between the outer ring and companion acreage. A t-test, also using a 95% confidence level, revealed that as farm size increased, yield also increased. The results also suggest that as farm size increased, the average insecticide, irrigation, fertilizer, and herbicide costs per acre also increased. In addition, the results indicate that the outer ring’s insecticide costs per acre are significantly greater than the control area, and fertilizer costs per acre are significantly less than in the control area. Kansas machinery fixed cost data were obtained for 58 fields (2552.7 acres) in the 1997 economic survey. Sixty-two percent, 25%, and 14% of the data collected were from fields located in the outer ring, inner core, and companion acreage, respectively. Recall that 54%, 24%, and 22 percent of the acres in the Kansas site were in the outer ring, inner core, and companion groups. A regression analysis based upon the machinery cost data indicated that the inner core, outer ring, and companion acreage did not have significantly different machinery costs. Farm size was not a significant explanatory variable. The machinery costs for the Kansas site were $53.14 per acre in the outer ring, $53.81 per acre in the inner core, and $52.53 for the companion acreage, excluding acreage reported to be custom farmed (Appendix D). These results suggest that differences in machinery use are not an important consideration in the Net Present Value economic analysis.1 Kansas Results, 1998 In 1998, there was an increase in the acreage planted to corn in the Kansas AWPM site (4850 acres vs. 4246 in 1997). There was also a small increase in the corn acreage in the companion site (1400 acres vs. 1307 in 1997). The response rate to the economic questionnaire in 1998 was only 42%, considerably lower than the 74% response rate in 1997. Farms ranged in size from 140 to 2400 acres, with 64% between 500 and 2000 acres. Kansas farmers who owned less than 25% of the land they farmed comprised 35% of total acreage. Corn was the dominant crop with 37% of the total crop acreage, followed by wheat, pasture, soybeans, and sorghum (18%, 16%, 15%, and 9%, respectively). The remaining acreage was planted to alfalfa/hay and small grains. Custom application of inputs remained common in 1998 for herbicides and fertilizers, but not insecticides. Herbicides were custom applied to 41% of the total acreage, fertilizers were custom applied to 33% of total acreage, and insecticides were custom applied to only 8% of the total acreage. A majority of the farmers reported they did not use site-specific practices (86%). 11

Seven percent used a yield monitor with GPS. Other practices used were variable rate applications of fertilizer and lime, and variable rate seeding and field mapping. In 1998, soil insecticides were still used in the companion acreage, but not in the AWPM management acreage. Of those farmers in the companion site, 43% percent of the farmers purchased a soil insecticide from a private retail input supplier, and 14% bought soil insecticides from a local cooperative. Forty-three percent of the farmers in the companion site reported that they did not purchase a soil insecticide to control corn rootworm larvae. Kansas Corn Production Practices, 1998 In 1998, the majority of the tillable acreage in Kansas was planted to continuous corn (44%) with only 23% percent planted to first-year corn. It was unclear whether the remaining 33% of tillable acreage was first or second-year corn. The tillable acreage in the AWPM program that was share rented, owned, or cash rented was 47%, 38%, and 4%, respectively. Cash rent was only reported for one field ($100 per acre) and the average share rent was 46%. Planting populations were higher in 1998, with 28,845 and 30,000 seeds per acre being used on 89% and 11% of the tillable acreage for 30 and 36 inch row spacing, respectively. Ridge-till was used on 57% of the tillable acreage, and conservation tillage was used on 38%. Pest resistant varieties were used by more Kansas farmers in 1998 than in 1997. Gray leaf spot resistant varieties increased to 28% of total tillable corn acreage, and a Bt variety to control European corn borer increased to 9%. Twenty-eight percent of the tillable acreage was planted to more than one type of a pest resistant variety. The average reported yield, mostly calculated with scale weight tickets (63%) was 148 bushels per acre, which is lower than the yields reported in 1997. The USDA-NASS average yield in 1998 for irrigated corn in this region also was lower in 1998, at 146 bushels per acre compared to 152 bushels per acre in 1997. Soil insecticide applications were lower in 1998, with 78% reporting no soil insecticide use. The most commonly used soil insecticide was Furidan (11%) followed by Force, Counter, and Aztec (5%, 3%, and 1%, respectively). The average insecticide, herbicide, fertilizer, irrigation, and seed costs were $11.31, $22.28, $49.88, $27.35, and $31.02 per acre, respectively. Drying costs were only $0.01 per bushel, which was lower than in 1997. Regression Analysis, Kansas, 1998 At a 95% confidence level, average yield per acre, as well as drying costs per bushel, and insecticide, fertilizer, and seed costs per acre, was not significantly different among the companion, inner core, or outer ring acreage in 1998. However, herbicide and irrigation costs were significantly different among the three areas. A t-test, also using a 95% confidence level, revealed that as farm size increased, irrigation costs increased. In addition, the average per acre irrigation cost in the outer ring was significantly greater than the per acre irrigation costs in the control and inner core areas. Also, the irrigation cost for the control area was significantly greater than for the inner core. This might possibly reflect soil type of field location. Inner core herbicide costs were significantly greater that for the outer ring, and both were significantly greater than for the control area. The 12

low representation in the survey from the inner core (3% from the inner core vs. 39% companion and 58% outer ring) may explain the significant difference between the other two areas and the inner core. A summary of the economic survey results for Kansas follows (Table 2), and detailed survey results can be found in Appendix B.

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Table 2. 1997 and 1998 Economic Questionnaire Results for the Kansas AWPM Site

Management Corn Acreage Companion Corn Acreage Percent Respondents Percent Cornfields Farm Crops (% of total crop acres) Corn Soybeans Wheat Sorghum/Milo Small grains Alfalfa/Hay Pasture Other Custom application service (% of total acres) Herbicide Fertilizer Insecticide Resistant Variety (% of total tillable acres) No pest resistant Gray leaf spot resistant Bt with European corn borer resistance Mixed No response Soil insecticide (% of total tillable acres) None Aztec Counter Force Fortress Furadan Penncap-M (foliar insecticide) No response Inputs (weighted average cost per acre for those that responded) Insecticide Herbicide Fertilizer Irrigation Seed Drying (per bushel)

1997 4246 1307 74% 71%

Responses

1998 4850 1400 42% 28%

Responses

37% 15% 19% 9% 0.2% 3% 17%

28 27 22 14 3 13 19

37% 15% 18% 9% 0.1% 2% 16% 3.4%

14 14 9 8 1 7 9 5

42% 37% 8%

26 22 13

41% 33% 8%

12 12 11

68% 17% 1% 11% 3%

57 13 1 5 3

34% 28% 9% 28%

14 9 1 7

23% 4% 33% 11% 2% 2% 2% 24%

26 5 19 6 2 2 2 17

78% 1% 3% 5%

25 1 1 1

7% 1% 1%

1 1 1

$14.28 $19.45 $47.46 $35.00 $31.81 $0.05

30 75 72 65 76 6

$11.31 $22.28 $49.88 $27.35 $31.02 $0.01

30 31 22 31 6

29 79

14

14 31

Iowa Results, 1997 In 1997 there were 6020 corn acres in the Iowa AWPM site. The Iowa site had only a 44% response rate to the economic survey, which was substantially lower than the 1997 response rates for the other two sites. Farms ranged from 35 to 1500 acres, with 66% between 500 and 1500 acres. Farmers operating 22% of the total farming acreage owned less than 25% of the land. Corn was the dominant crop with 70% of total crop acreage, followed by soybeans, alfalfa/hay, pasture, small grains, and wheat (17%, 6%, 3%, 2%, and 2%, respectively). Fertilizers were custom applied to 49% of the total corn acreage, herbicides were custom applied to 37% of total corn acreage, and insecticides were custom applied to 10% of the total corn acreage. Sixty-seven percent of the farmers reported they did not use site specific practices. Six percent reported they used a yield monitor with GPS, and 17% stated they used a yield monitor without GPS. Other practices without GPS included field mapping, soil sampling, and variable lime application. A consulting service was used by 6% of the farmers, and a supplier/dealer service was used by 22%. A number of farmers responding to the survey indicated they used soil sampling, recommendations for fertilizers, herbicides, and insecticides, and insect/weed scouting (17%, 16%, 15%, 14%, and 6%, respectively). Fifty-six percent of the farmers purchased a soil insecticide from a private retail input supplier, and 33% bought soil insecticides from a local cooperative. Eleven percent reported that they did not purchase a soil insecticide to control corn rootworm larvae. Iowa Corn Production Practices, 1997 The majority of the tillable corn acreage in Iowa was planted to continuous corn (79%) with only 12% percent planted to first-year corn. It was unclear whether the remaining 8% of tillable corn acreage was first or second-year corn. The tillable corn acreage in the AWPM program that was share rented, owned, or cash rented was 44%, 19%, and 15%, respectively. The average cash rent was $122 per acre and the average share rent was 50%. Corn was planted on 30 and 38 inch row spacing at 29,100 and 26,800 seeds per acre on 65% and 35% of the tillable acreage, respectively. Conservation tillage was the most common (93% of tillable acreage), followed by no-till (7%) and conventional tillage (1%). Pest resistant varieties were used by some Iowa farmers. Gray leaf spot resistant varieties comprised 6% of total tillable corn acreage, a herbicide resistant variety was planted on 4%, and a Bt variety to control European corn borer was used on only 2% of the tillable acreage. Fifteen percent of the tillable corn acreage was planted to more than one type of a pest resistant variety. Forty-seven percent was not planted to a pest resistant variety, and the variety that was planted on the remaining 26% of the tillable corn acreage was not reported. The average reported yield, mostly calculated with personal estimates (29%) was 151 bushels per acre, which is greater than the yields reported in the Indiana/Illinois site, but less than 15

the yields reported for the Kansas sites. Scale weight tickets, yield monitors, and weigh wagons were used to estimate yield on 16%, 11%, and 8% of the total tillable acreage, respectively. The average yield in 1997 for this region according to USDA-NASS was 141 bushels per acre. Soil insecticide application was very common in 1997, with only 6% reporting using no soil insecticides. The most commonly used soil insecticide was Force (39%) followed by Counter, Furadan, Lorsban, Fortress, and Dyfonate (16%, 8%, 6%, 3%, and 2%, respectively). There was no response for 19% of the tillable corn acreage. The average insecticide, herbicide, fertilizer, lime, and seed costs were $12.53, $25.37, $46.95, $8.40, and $28.62 per acre, respectively. Drying costs were $0.11 per bushel. Regression Analysis, Iowa, 1998 At a 95% confidence level, average yield per acre, as well as insecticide, fertilizer, lime, and seed costs per acre, was not significantly different among the companion, inner core, or outer ring acreage in 1997. However, herbicide and drying costs were significantly different between the inner core and outer ring areas. A t-test, also using a 95% confidence level, revealed that as farm size ni creased, fertilizer and herbicide costs decreased, but drying costs increased. The results also suggested that herbicide and drying costs of the outer ring were significantly greater than the inner core. Iowa machinery fixed cost data were obtained for 38 fields (1189.2 acres) in the 1997 economic survey. Seventy-three percent, 17%, and 10% of the data collected were from fields located in the outer ring, inner core, and companion acreage, respectively. A regression analysis based upon the machinery cost data indicated that the inner core, outer ring, and companion acreage did not have significantly different machinery costs. Farm size was not a significant explanatory variable. The machinery costs for the Iowa site were $44.99 per acre in the outer ring, $44.85 per acre in the inner core, and $49.84 for the companion acreage, excluding acreage reported to be custom farmed (Appendix D). These results suggest that differences in machinery use are not an important consideration in the Net Present Value economic analysis.1 Iowa Results, 1998 In 1998, there were 6829 corn acres in the Iowa AWPM site. The Iowa site had a higher response rate to the economic survey in 1998 than in 1997 (55% vs. 44% in 1997). Farms ranged in size from 100 to 1950 acres, with 76% between 500 and 2000 acres. Farmers operating 9% of the total farming acreage owned less than 25% of the land. Corn was the dominant crop with 65% of total acreage, followed by soybeans, alfalfa/hay, and pasture (22%, 8%, and 3%, respectively). Custom applications of fertilizers were the most common. Fertilizers were custom applied to 41% of the total corn acreage, herbicides were custom applied to 25% of total corn acreage, and insecticides were custom applied to 15% of the total corn acreage. Fifty percent of the farmers reported they did not use site-specific practices. Twenty-three percent, 18%, 14%, 9%, and 5% of the farmers reported taking soil samples, using variable rate fertilizer or lime 16

applications, field mapping, using a yield monitor and variable rate seeding with GPS, respectively. For fields not involved in the AWPM program, 45% reported that they used a consulting service, 41% a supplier/dealer service, and 14% reported using neither. A number of farmers responding to the survey indicated they used consultants for fertilizer and/or chemical recommendations, soil sampling, and insect/weed scouting (35%, 29%, and 4% of the total corn acreage, respectively). For fields involved in the AWPM program, 64% reported that they used a consulting service and/or a supplier/dealer service, and 9% reported using neither. A number of farmers responding to the survey indicated they used consultants for insect scouting, fertilizer and/or chemical recommendations, soil sampling, and insect/weed scouting (32%, 28%, 23%, and 10% of the total acreage, respectively). Thirty-two percent of the farmers purchased a soil insecticide from a private retail input supplier, and 36% bought soil insecticides from a local cooperative. Thirty-two percent reported that they did not purchase a soil insecticide to control corn rootworm larvae, which was a higher percentage than in 1997. Iowa Corn Production Practices, 1998 The tillable crop acreage in the AWPM program that was owned or cash rented was 44%, and 28%, respectively, with 26% having mixed ownership. Cash rent was only reported for one field ($126 per acre). Planting populations were similar to those in 1997, with 28,800 and 28,900 seeds per acre being used on 80% and 18% of the tillable corn acreage for 30 and 38 inch row spacing, respectively. Conservation tillage was reported on 100% of the tillable acreage. Pest resistant varieties were used by some Iowa farmers. Gray leaf spot resistant varieties decreased to only 1% of total tillable corn acreage, but use of a Bt variety to control European corn borer increased to 11% of the tillable corn acreage. Forty-one percent of the tillable corn acreage was planted to more than one type of a pest resistant variety. Thirty-two percent was not planted to a pest resistant variety. The average reported yield, mostly calculated with a yield monitor (38%) was 159 bushels per acre, which is higher than the average yields of 151 bushels per acre reported in 1997. Other methods used to estimate yields were personal estimates (27%), scale weight tickets (12%), and weigh wagons (11%). The remaining estimates were based on a combination of methods. The USDA-NASS average yield for this region in 1998 was 152 bushels per acre, compared to 141 bushels per acre in 1997. Few Iowa farmers applied a soil insecticide in 1998, with 70% reporting no soil insecticide use. The most commonly used soil insecticide was Furidan (11% of tillable corn acreage) followed by Counter, Force, Lorsban, and Aztec (10%, 5%, 1%, and 0.4%, respectively). The average insecticide, herbicide, fertilizer, lime, and seed costs were $13.48, $24.72, $37.00, $6.28, and $30.66 per acre, respectively. Drying costs were $0.10 per bushel. 17

Regression Analysis, Iowa, 1998 At a 95% confidence level, average yield per acre, as well as drying cost per bushel, lime, and seed costs per acre, was not significantly different among the companion, inner core, or outer ring acreage in 1997. However, herbicide and fertilizer costs for the inner core and outer ring were significantly less than the companion area. Also, the average insecticide costs per acre were significantly higher for the outer ring as compared to the companion area. A t-test, using a 95% confidence level, suggested that as farm size increased, yield per acre and insecticide costs per acre also increased, but fertilizer and herbicide costs decreased. The results also suggest that herbicide and fertilizer costs for the inner core and outer ring were significantly less than for the companion acreage. Additionally, insecticide costs of the outer ring were significantly greater than for the companion acreage. A summary of the economic survey results for Iowa follows (Table 3), and detailed survey results can be found in Appendix C. Conclusions Economic questionnaires were administered in 1997 and 1998 to farmers in the Indiana/Illinois, Kansas, and Iowa sites involved in the Areawide Pest Management (AWPM) program for the control of corn rootworms. These questionnaires provided information regarding variable and fixed costs of production for fields located within the management site and also the companion acreage. The economic analysis indicated that yields, variable costs per acre, and machinery costs per acre were not statistically different within a site across the inner core, outer ring, and companion acreage, with relatively few exceptions. These results indicate that there is a solid baseline for the Net Present Value comparison between the soil insecticide and AWPM methods for control of corn rootworms, since fixed and variable costs of production not associated with corn rootworm control can be assumed to be statistically the same between the inner core, outer ring, and companion acreage. Various information regarding farming practices among the sites was obtained from the economic questionnaires. It was observed that there was little adoption of GPS (site-specific farming) or Bt corn (resistant to the European corn borer) in 1997 or 1998 for any of the sites. Another observation was that the Indiana/Illinois site relied more on soil insecticides than the other two sites. Also, a corn/soybean rotation prevailed in the Indiana/Illinois site, while continuous corn was more common in Iowa. A wide range of rotational crops was present in Kansas. Conservation tillage predominated in the Indiana/Illinois and Iowa sites, while ridge tillage was more common in Kansas, which matches with the irrigation systems prevalent in the Kansas site.

18

Table 3. 1997 and 1998 Economic Questionnaire Results for the Iowa AWPM Site

Management Corn Acreage Companion Corn Acreage Percent Respondents Percent Cornfields Farm Crops (% of total crop acres) Corn Soybeans Wheat Small grains Alfalfa/Hay Pasture Other Custom application service (% of total acres) Herbicide Fertilizer Insecticide Resistant Variety (% of total tillable acres) No pest resistant Gray leaf spot resistant Bt with European corn borer resistance Herbicide resistant Mixed No response Soil insecticide (% of total tillable acres) None Aztec Counter Dyfonate Force Fortress Furadan Lorsban No response Inputs (weighted average cost per acre for those that responded) Insecticide Herbicide Fertilizer Lime Seed Drying (per bushel)

1997 6020

Responses

1998 6829 287 55% 56%

Responses

44% 32%

18 52

70% 17% 2% 2% 6% 3% 0%

17 12 1 8 14 7

65% 22% 0.2% 1% 8% 3% 0.5%

22 21 1 9 19 10 1

37% 49% 10%

15 16 10

25% 41% 5%

21 21 17

47% 6% 2% 4% 15% 26%

31 3 1 1 2 14

32% 1% 11%

18 2 9

41% 16%

10 3

6%

6

16% 2% 39% 3% 8% 6% 19%

6 2 20 1 3 2 12

70% 0% 10%

29 1 2

5%

4

11% 1% 2%

4 1 1

$12.53 $25.37 $46.95 $8.40 $28.62 $0.11

29 28 34 6 34 19

$13.48 $24.72 $37.00 $6.28 $30.66 $0.10

11 39 39 4 38 16

19

22 42

Appendix A: Results of the 1997 and 1998 Economic Questionnaire for the Indiana/Illinois AWPM Site

Management corn/soybean acreage Companion corn/soybean acreage Percent of farmers that responded Percent of corn fields Percent of AWPM acreage Percent of AWPM tillable acres Farm size (% of total farming acres) 0-499 500-999 1,000-1,499 1,500-1,999 2,000-2,499 2,500-6,500 Percent of farm acreage owned (% of total farming acres) 0-25% 26%-50% 51%-75% 76%-100% Total farm crops (% of total crop acres) Corn Soybeans Wheat Sorghum/Milo Small grains Alfalfa/Hay Pasture Other Custom application service (% of total farming acres) Herbicide Fertilizer Insecticide Site specific practices (% of total farmers) None With GPS Combine yield monitor Field mapping Soil sampling Variable fertilizer/lime application Variable rate seeding Without GPS Combine yield monitor Field mapping Soil sampling Variable fertilizer/lime application Variable rate seeding

20

IN/IL 1997 5100/4500 980/700 76% 68% 69% 68%

No. of IN/IL Responses 1997 5061/4112 615/744 29 76% 73 78% 4216 85% 4176 85%

No. of Responses

14% 27% 24% 21%

11 9 5 3

14%

1

7% 9% 14% 21% 27% 11%

7 8 4 4 4 1

77% 9% 3% 10%

22 3 1 3

69% 12% 9% 10%

18 3 4 3

55% 43% 0.2%

28 28 1

52% 41% 0.2%

28 29 2

0.2% 0.8% 0.5%

4 5 5

0.1% 1.2% 0.7% 5%

3 6 7 3

49% 54% 7%

28 27 27

40% 52% 2%

28 27 21

69%

20

50%

14

3% 10% 7% 3%

1 3 2 1

7% 14% 14% 7%

2 4 4 2

1 4 4

4% 14% 29% 21% 11%

1 4 8 6 3

3% 14% 14%

28 73 4820 4807

Service source for all farm acreage (% of total farmers) Consultant Supplier/Dealer None No response Services for all farming acreage (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer recommendations Herbicide recommendations Insecticide recommendations Service source for farm acreage-not in the AWPM program (% of total farmers) Consultant Supplier/Dealer None No response Services for farm acreage-not in the AWPM program (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer and/or chemical recommendations Service source for farm acreage-in the AWPM program (% of total farmers) Consultant Supplier/Dealer None No response Services for farm acreage-in the AWPM program (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer and/or chemical recommendations CRW insecticide source (% of farmers) Did not purchase Local cooperative Private retail input supplier Both AWPM fields (% of total tillable acres) First year corn Second year corn Mixed Unknown

21

IN/IL 1997

No. of IN/IL Responses 1997

69% 24%

20 7

17%

5

6% 8% 17% 19% 5% 7%

6 6 11 4 2 3

No. of Responses

25% 466% 29% 7%

7 13 8 2

7% 9% 31% 38%

3 5 15 12

79% 36% 4% 7%

22 10 1 2

16% 10% 8%

21 13 11

17% 72% 10%

5 21 3

4% 18% 71% 7%

1 5 20 2

79% 13% 7% 2%

58 10 3 2

67% 14% 12% 7%

53 11 6 3

Land (% of total tillable acres) Owned Cash rented Share rented Mixed No response Land rent (weighted average of those that responded) Cash rent Share rent Row width (weighted average of those that responded) 30 36 38 Seeds per acre (weighted average of those that responded) 30 36 38 Week planted 4/15 - 4/21 4/22 - 4/28 4/29 - 5/5 5/6 - 5/12 5/13 - 5/19 1997 tillage practice (% of total tillable acreage) Conservation No-till Ridge Conventional No response Resistant variety (% of total tillable acreage) No pest resistant Gray leaf spot resistant Bt with European corn borer resistance Herbicide resistant Mixed No response Yield - bushel per acre (weighted average for those that responded) Potential Actual

22

IN/IL 1997

No. of IN/IL Responses 1997

No. of Responses

29% 23% 45% 3%

22 14 34 3

23% 25% 42% 8% 1%

16 17 35 4 1

$119.00 50%

13 34

$122.00 50%

15 35

58% 27% 15%

52 5 16

81% 6% 13%

52 5 16

28,094 27,192 25,935

37 19 16

32,300 28,400 27,400

52 5 16

15% 30% 16% 5% 33%

14 18 12 3 26

85% 13%

60 12

92% 6%

66 4

2%

1

1% 1%

2 1

72% 7% 4% 0.5% 16%

55 5 2 1 10

58% 3% 12% 7% 16% 5%

45 3 7 4 10 4

153 143

67 68

152 154

70 71

Yield estimate (% of total tillable acreage) Combine yield monitor Private scouting service Weigh wagon Scale weight tickets Best estimate Mixed No response Soil insecticide (% of total tillable acreage) None Aztec Counter Dyfonate Force Fortress Furadan Lorsban Regent Penncap-M (foliar insecticide) No response Inputs (weighted average cost per acre for those that responded) Insecticide Herbicides Fertilizer Lime Irrigation Seed Drying (per bushel)

23

IN/IL 1997

No. of IN/IL Responses 1997

No. of Responses

91% 6% 1% 1%

67 4 1 1

68% 12% 10% 10%

54 8 5 6

27%

20

10%

7

16%

11

33%

23

11%

6

16%

9

43%

33

40% 1%

33 1

3%

3

$13.27 $23.24 $64.19 $10.60

49 72 62 21

$14.24 $24.15 $50.86 $4.35

61 72 73 10

$27.35 $0.14

64 60

$27.58 $0.06

64 60

Appendix B: Results of the 1997 and 1998 Economic Questionnaire for the Kansas AWPM Site

Management corn acreage Companion corn acreage Percent of farmers that responded Percent of corn fields Percent of AWPM acreage Percent of AWPM tillable acres Farm size (% of total farming acres) 0-499 500-999 1,000-1,499 1,500-1,999 2,000-2,499 2,500-6,500 Percent of farm acreage owned (% of total farming acres) 0-25% 26%-50% 51%-75% 76%-100% Total farm crops (% of total crop acres) Corn Soybeans Wheat Sorghum/Milo Small grains Alfalfa/Hay Pasture Other Custom application service (% of total farming acres) Herbicide Fertilizer Insecticide Site specific practices (% of total farmers) None With GPS Combine yield monitor Field mapping Soil sampling Variable fertilizer/lime application Variable rate seeding Without GPS Combine yield monitor Field mapping Soil sampling Variable fertilizer/lime application Variable rate seeding

Kansas 1997 4246 1307 74% 71% 66% 66%

No. of Kansas Responses 1997 4850 1400 29 42% 79 28% 3655 33% 3641 33%

No. of Responses

4% 17% 17% 15% 27% 19%

8 8 5 3 4 1

5% 21% 7% 36% 32%

4 4 1 3 2

39% 35% 4% 21%

14 8 3 4

35% 48% 15% 2%

5 5 2 2

37% 15% 19% 9% 0.2% 3% 17%

28 27 22 14 3 13 19

37% 15% 18% 9% 0.1% 2% 16% 3.4%

14 14 9 8 1 7 9 5

42% 37% 8%

26 22 13

41% 33% 8%

12 12 11

76%

22

86%

12

7%

1

7%

1

7% 7%

1 1

17%

24

14 31 2071 2051

5

Service source for all farm acreage (% of total farmers) Consultant Supplier/Dealer None No response Services for all farming acreage (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer recommendations Herbicide recommendations Insecticide recommendations Service source for farm acreage-not in the AWPM program (% of total farmers) Consultant Supplier/Dealer None No response Services for farm acreage-not in the AWPM program (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer and/or chemical recommendations Service source for farm acreage-in the AWPM program (% of total farmers) Consultant Supplier/Dealer None No response Services for farm acreage-in the AWPM program (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer and/or chemical recommendations CRW insecticide source (% of farmers) Did not purchase Local cooperative Private retail input supplier Both AWPM fields (% of total tillable acres) First year corn Second year corn Mixed Unknown

25

Kansas 1997

No. of Kansas Responses 1997

48% 7% 34% 10%

14 2 10 3

0.4% 12% 12% 9% 11% 11%

1 13 13 10 11 11

No. of Responses

57%

8

29% 14%

4 2

13% 14% 10%

7 7 7

43% 21% 14% 21%

6 3 2 3

7% 9% 10%

6 8 8

31% 14% 52% 3%

9 4 15 1

43% 14% 43%

6 2 6

20% 50% 24% 6%

25 40 9 5

23% 44% 23% 10%

12 13 3 3

Land (% of total tillable acres) Owned Cash rented Share rented Mixed No response Land rent (weighted average of those that responded) Cash rent Share rent Row width (weighted average of those that responded) 30 36 38 Seeds per acre (weighted average of those that responded) 30 36 38 Week planted 4/15 - 4/21 4/22 - 4/28 4/29 - 5/5 5/6 - 5/12 5/13 - 5/19 1997 tillage practice (% of total tillable acreage) Conservation No-till Ridge Conventional No response Resistant variety (% of total tillable acreage) No pest resistant Gray leaf spot resistant Bt with European corn borer resistance Herbicide resistant Mixed No response Yield - bushel per acre (weighted average for those that responded) Potential Actual

26

Kansas 1997

No. of Kansas Responses 1997

No. of Responses

36% 14% 43% 7%

29 9 40 1

38% 4% 47% 11%

14 1 15 1

$121.00 45%

9 40

$100.00 46%

1 15

89% 11%

75 4

89% 11%

29 1

28,182 23,381

75 4

28,845 30,000

29 1

13% 37% 34% 17%

5 14 8 3

38%

13

57%

17

5%

1

36% 2% 57% 5%

24 1 49 5

68% 17% 1%

57 13 1

34% 28% 9%

14 9 1

11% 3%

5 3

28%

7

166 167

76 76

161 148

29 30

Yield estimate (% of total tillable acreage) Combine yield monitor Private scouting service Weigh wagon Scale weight tickets Best estimate Mixed No response Soil insecticide (% of total tillable acreage) None Aztec Counter Dyfonate Force Fortress Furadan Lorsban Regent Penncap-M (foliar insecticide) No response Inputs (weighted average cost per acre for those that responded) Insecticide Herbicides Fertilizer Lime Irrigation Seed Drying (per bushel)

27

Kansas 1997

No. of Kansas Responses 1997

0.4% 77% 17% 4% 1%

1 59 13 5 1

23% 4% 33%

No. of Responses

63% 37%

20 11

26 5 19

78% 1% 3%

25 1 1

11% 2% 2%

6 2 2

5%

1

7%

1

2% 24%

2 17

1% 1%

1 1

$14.28 $19.45 $47.46

30 75 72

$11.31 $22.28 $49.88

30 31

$35.00 $31.81 $0.05

65 76 6

$27.35 $31.02 $0.01

22 31 6

Appendix C: Results of the 1997 and 1998 Economic Questionnaire for the Iowa AWPM Site Iowa 1997 6020

Management corn acreage Companion corn acreage Percent of farmers that responded Percent of corn fields Percent of AWPM acreage Percent of AWPM tillable acres Farm size (% of total farming acres) 0-499 500-999 1,000-1,499 1,500-1,999 2,000-2,499 2,500-6,500 Percent of farm acreage owned (% of total farming acres) 0-25% 26%-50% 51%-75% 76%-100% Total farm crops (% of total crop acres) Corn Soybeans Wheat Sorghum/Milo Small grains Alfalfa/Hay Pasture Other Custom application service (% of total farming acres) Herbicide Fertilizer Insecticide Site specific practices (% of total farmers) None With GPS Combine yield monitor Field mapping Soil sampling Variable fertilizer/lime application Variable rate seeding Without GPS Combine yield monitor Field mapping Soil sampling Variable fertilizer/lime application Variable rate seeding

28

No. of Responses

44% 32% 28% 28%

No. of Iowa Responses 1997 6829 287 18 55% 52 56% 1920 59% 1913 59%

34% 34% 33%

12 4 2

24% 23% 17% 35%

12 5 2 3

22% 29% 8% 41%

6 2 1 9

9% 48% 17% 26%

4 5 3 10

70% 17% 2%

17 12 1

65% 22% 0.2%

22 21 1

2.0% 6% 3%

8 14 7

1.0% 8% 3% 0.5%

9 19 10 1

37% 49% 10%

15 16 10

25% 41% 5%

21 21 17

67%

12

50%

11

6%

1

9% 14% 23% 18% 5%

2 3 5 4 1

17% 11% 11% 11%

3 2 2 2

18%

4

18% 5%

4 1

22 42 4219 4182

Service source for all farm acreage (% of total farmers) Consultant Supplier/Dealer None No response Services for all farming acreage (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer recommendations Herbicide recommendations Insecticide recommendations Service source for farm acreage-not in the AWPM program (% of total farmers) Consultant Supplier/Dealer None No response Services for farm acreage-not in the AWPM program (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer and/or chemical recommendations Service source for farm acreage-in the AWPM program (% of total farmers) Consultant Supplier/Dealer None No response Services for farm acreage-in the AWPM program (% of total farming acres) Insect scouting Insect and weed scouting Soil testing Fertilizer and/or chemical recommendations CRW insecticide source (% of farmers) Did not purchase Local cooperative Private retail input supplier Both AWPM fields (% of total tillable acres) First year corn Second year corn Mixed Unknown

29

Iowa 1997

No. of Iowa Responses 1997

6% 22% 33% 39%

1 4 6 7

6% 17% 16% 15% 14%

1 3 4 4 4

11% 33% 56%

2 6 10

12% 79% 5% 3%

10 38 2 2

No. of Responses

45% 41% 14%

10 9 3

4% 29% 35%

3 8 9

64% 64% 5% 9%

14 14 1 2

32% 10% 23% 28%

13 4 12 16

32% 36% 32%

7 8 7

Land (% of total tillable acres) Owned Cash rented Share rented Mixed No response Land rent (weighted average of those that responded) Cash rent Share rent Row width (weighted average of those that responded) 30 36 38 Seeds per acre (weighted average of those that responded) 30 36 38 Week planted 4/15 - 4/21 4/22 - 4/28 4/29 - 5/5 5/6 - 5/12 5/13 - 5/19 1997 tillage practice (% of total tillable acreage) Conservation No-till Ridge Conventional No response Resistant variety (% of total tillable acreage) No pest resistant Gray leaf spot resistant Bt with European corn borer resistance Herbicide resistant Mixed No response Yield - bushel per acre (weighted average for those that responded) Potential Actual

30

Iowa 1997

No. of Iowa Responses 1997

No. of Responses

44% 19% 15%

18 14 6

44% 28%

29 9

22%

14

26% 2%

3 1

$122.00 50%

11 6

$126.00

7

65%

27

80%

30

35%

25

18%

11

29,100

27

28,800

30

26,800

24

28,900

11

2% 30% 41% 27%

1 14 16 10

100%

42

93% 7%

48 3

1%

1

47% 6% 2% 4% 15% 26%

31 3 1 1 2 14

32% 1% 11%

18 2 9

41% 16%

10 3

148 151

31 36

153 159

4 42

Yield estimate (% of total tillable acreage) Combine yield monitor Private scouting service Weigh wagon Scale weight tickets Best estimate Mixed No response Soil insecticide (% of total tillable acreage) None Aztec Counter Dyfonate Force Fortress Furadan Lorsban Regent Penncap-M (foliar insecticide) No response Inputs (weighted average cost per acre for those that responded) Insecticide Herbicides Fertilizer Lime Irrigation Seed Drying (per bushel)

31

Iowa 1997

No. of Iowa Responses 1997

No. of Responses

11%

1

38%

10

8.0% 16% 29% 15% 21%

3 11 19 6 12

11% 12% 27% 13%

4 5 16 7

6%

6

16% 2% 39% 3% 8% 6%

6 2 20 1 3 2

70% 0.4% 10%

29 1 2

5%

4

11% 1%

4 1

19%

12

2%

1

$12.53 $25.37 $46.95 $8.40

29 28 34 6

$13.48 $24.72 $37.00 $6.28

11 39 39 4

$28.62 $0.11

34 19

$30.66 $0.10

38 16

Appendix D: Results of the 1997 Machinery Fixed Costs of the Indiana/Illinois, Kansas, and Iowa AWPM sites Machinery Fixed Costs per Acre, Excluding Custom Acreage Outer Core

Inner Core

Companion Acreage

IN/IL $/acre n1 (# fields) n2 (# acres)

$45.35 42 2348.2

$44.26 13 643.6

$41.73 4 263.9

IOWA $/acre n1 (# fields) n2 (# acres)

$44.99 24 872.2

$44.85 11 204

$49.84 3 113

KANSAS $/acre n1 (# fields) n2 (# acres)

$53.14 36 1570.7

$53.51 13 627

$52.53 9 355

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