FARM-LEVEL ECONOMIC AND ENVIRONMENTAL IMPACTS OF EASTERN CORN BELT CROPPING SYSTEMS

Output from two process simulation models (EPIC and GLEAMS) was combined with a farm level linear programming model to assess the economic and environmental implications of selected eastern Corn Belt farming systems. The farm level economic results suggest that an alfalfa (Medicago sativa L.)-based cropping system is generally less profitable than a corn-soybean (Zea mays L.-Glycine max L. [Merr.1) rotation produced under farm program prices or recent average market price conditions. Net returns are projected to decline by approximately 38% if alfalfa is included in an eastern Corn Belt cropping system. The adoption of a corn-alfalfa cropping system could reduce annual soil erosion and the quantity of nitrates in surface water runoff relative to a conventional corn-soybean rotation. The corn-alfalfa system, however, leads to an increase in atrazine and alachlor runoff in surface water and an increase in nitrate percolation. A more environmentally desirable outcome may be attained by continuing farm programs that reduce acreage planted to corn. Yet to maintain farm income and encourage voluntary farmer participation, taxpayer costs may be unacceptably high. Thus, there are significant trade-offs among environmental goals, federal budget reduction efforts, and income and employment in farming and agribusiness.