There continues to be a question as to the overall effectiveness of co
nservation tillage practices in reducing the impact of agricultural pr
oduction on the environment. While it is generally recognized that wat
er runoff and soil erosion will decline further, as tillage and mulch
tillage systems are not used more extensively on cropland, what will h
appen to pesticide and fertilizer use remains uncertain. To gain some
insight into this, the conservation tillage adoption decision is model
led. On the assumption that the decision to adopt conservation tillage
is a two-step procedure, the first decision is whether or not to adop
t a conservation tillage production system and the second concerns the
extent to which conservation tillage should be used-appropriate model
s of the Cragg and Heckman (dominance) type are estimated. Based on fa
rm-level data on corn production in the United States for 1987, the pr
ofile of a farm on which conservation tillage was adopted is that the
cropland had above-average slope and experienced above-average rainfal
l, the farm was a cash grain enterprise, and it had an above-average e
xpenditure on pesticides and a below-average expenditure on fuel and c
ustom pesticide applications. Additionally, for a farm adopting a no-t
illage production practice, an above-average expenditure was made on f
ertilizer.