Economics of wheat residue management in doublecrop soybean

Residue management plays an important role in soil conservation. While cons ervation advocates encourage residue retention, Arkansas wheat (Triticum ae stivum L. em Thell)-soybean [Glycine max (L.) Merr.] growers prefer burning of their wheat straw. Little information exists on the profitability and r isk-efficiency of alternative wheat residue management options on soybean p roduction. The objective of this study was to investigate the economic impl ications of leaving or burning wheat residue on the production of doublecro p soybean. Data from residue management experiments in Arkansas between 199 2 and 1995 were used for this study. Net returns to different production ar rangements for the soybean component of the system were estimated from ente rprise budgets. Stochastic dominance analyses were used to identify appropr iate production strategies based on net returns and risk preferences. Resul ts indicated that the effects of leaving or burning wheat residue would dep end on the complement of production systems used. Net returns could range f rom a high of $171/acre to a net loss of $45/acre depending on the producti on system, experimental location, and year. Focusing exclusively on the par tial returns to soybean component, residue retention generally improved ret urns in fields that were tilled prior to planting while burning of wheat re sidue was a superior strategy under no-till (NT) systems. Stochastic domina nce results showed that fields with tillage were preferred to NT fields, wh ile the appropriate production systems would integrate preplant tillage wit h wheat residue retention under narrow row spacing arrangements.