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Economics: Jorgensen Land and Cattle Case Study (Part 2)

November 15, 2017 Video

In this video Nick Jorgensen provides a simple calculation related to equipment costs and economics based on what Jorgensen land and cattle may have done 30 years ago in a wheat – fallow system compared to today. By not operating tillage equipment and running a sprayer the Jorgensens are saving between $25 and $45 in reduced equipment costs. Keep in mind that Nick wisely provides a range because even in the case of one operation things change (number of tillage passes, number of spray passes, unit costs for equipment etc.), but the principles don’t change. Your operation may also vary, but the bottom line is that just on equipment costs alone by going no till, your equipment input costs (capital, maintenance, fuel) will go down. While one may argue the amounts and the range, the direction of input costs is pretty certain – they go down.

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