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9. Assume a farmer is considering switching from conventional tillage on 300 acres of soybeans to using a no-till planter. Use the following information to
9. Assume a farmer is considering switching from conventional tillage on 300 acres of soybeans to using a no-till planter. Use the following information to analyze this decision using the partial budget format (4 quadrants) discussed in class. Show work your work. It may be helpful to do in excel and then copy and paste here. Machinery (including fuel) variable costs for the tractor and no-till planter are expected to be $10.00 per acre Machinery variable costs for conventional tillage have averaged $15.00 per acre over the past several years Labor requirements for conventional tillage are 3.0 hours per acre with a value of $18.00/hour Labor requirements for no-till are 1.5 hours per acre at $18.00 hour In recent years, conventional till soybean yields have averaged 54 bushels per acre With no-till, the soybean yield is expected to drop 2 bushels per acre Soybeans are expected to be worth $8.80/bushel during the year considered. a. b. c. d. e. f. g. Should the farmer make this change? (Yes or No) Why or why not
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