WHY ECONOMICS
INTRODUCTION
How do we decide to spend our money? Normally we compare the benefits of the
purchase or investment to its costs. Someone considering the purchase of a new car
might see better gas mileage and fewer repairs as benefits. Costs might include higher
car payments and higher insurance premiums. Someone wanting a computer might be
comparing benefits that a computer would give them in business or at home to the cost
of giving up other activities or items currently enjoyed.
In agriculture, producers must go through the same thought process when deciding
whether to purchase or invest in conservation. Will the benefits from conservation
outweigh the costs? Because these producers are the Natural Resource Conservation
Service's (NRCS) major clients, it is important that we understand the benefits and costs
of conservation. Economics is just one more tool to help us do a better job and to help
the land user make more informed decisions.
BENEFITS OF CONSERVATION
Benefits from conservation are numerous and may occur offsite as well as onsite. This
material examines onsite benefits in three parts: (1) productivity maintenance, (2)
decreased production costs and offsite benefits as a whole, and (3) changes in yields.
Much more detailed records of conservation effects can be found in Sections III and V of
the South Dakota Technical Guide (SDTG).
ONSITE BENEFITS
Productivity Maintenance
When we speak of maintaining productivity we're really referring to maintaining crop yields by
protecting the soil from erosion. In order to maintain yields, crops need sufficient nutrients and
water, and a soil profile that allows adequate root growth with sufficient tilth and organic matter.
When erosion occurs, crops are denied these basic needs to some extent. Wind erosion
causes loss of soil moisture and degradation of the soil profile through removal of topsoil.
Water erosion causes loss of topsoil that reduces the quality and quantity of the soil and causes
loss of nutrients. Water erosion can also cause onsite