Economic consequences of soil compaction are modeled by assuming the s
oil as an exhaustible resource with changing value by the passage of t
ime. A model is developed to evaluate the effects of mechanization and
alternative machinery management strategies on the final value (produ
ctivity) of this resource. Positive effects of tillage operations are
balanced by often negative effects of soil compaction and erosion. In
addition, the effects of soil compaction on energy cost, air pollution
, capital cost, timeliness cost, and erosion are also evaluated.