Farm Comparison Edelira

Most of Paraguay’s experience with green manure crops and no-till on small farms has been in Edelira. This is attributable to:

• the enthusiasm and dedication of DEAG extensionist Magin Meza;
• a small group of farmers who were interested in and convinced about the value of green manure crops and no-till;
• to the valuable technical and financial support provided by the MAG-GTZ Soil Conservation Project;
• the formation of a No-till Small Farmer Association which was equipped (free of charge to the farmers) with a full complement of manual and animal-driven no-till equipment.

The Small Farmer No-till Association has 17 members, although only 7 are full-time active members permanently using no-till (F. Ozune, pers.comm.).

Interestingly Magin has classified no-till small farmers in Edelira into three types. Of the 50 farmers permanently using no-till it is estimated 12 are of Type I, 30 of Type II and 8 of Type III(M.Meza, pers.comm.):

• Type I: average 9 hectares. Only use matraca not animal traction for direct seeding.
• Type II: 15-20 hectares. Use animal traction for direct seeding with their own work oxen.
• Type III: >18 hectares. Do not own work oxen. Hire oxen or tractor for direct seeding. These farmers are more capitalised than the Type I or Type II farmers.

One of each of these farm types was selected for detailed analysis in the study.

The farm of Sr. Mendoza was analysed as representative of the Type I small farms which are generally less than 10 ha. Crops are sown manually and farmers do not have their own pair of work oxen. Occasionally minimum tillage is practised. The farming system is detailed in Appendix A1.2, Section A1.2.1.

Mendoza started farming his 9.2 ha farm in 1985. The farm lies within a valley and slopes towards a river that lies on its lowest boundary. When Mendoza purchased the farm the soils were badly degraded following 10 years of intensive cultivation by its previous owner.

The farm is operated by Sr. Mendoza and his wife. The Mendoza’s have five children aged from 8 months to 12 years of age. No labour is contracted with the older children making a valuable contribution outside of school hours.

Sr. Mendoza is a leading small farmer. He is a member of the Colonias Unidas Co-operative and is President of the newly established local small farmers’ co-operative Ka’aguyPoty.Ltda. Long-term credit for agro-forestry and fish production has been obtained through the CAH, while short-term credit is sourced from the Colonias Unidas Co-operative. In the initial years of farming the property, short-term credit was obtained from local traders and local co-operatives.

A minimal but functional complement of farm machinery and equipment is owned by the Mendozas. Details are provided in Appendix A1.2, Section A1.2.1. This minimal complement of machinery has enabled Mendoza to invest more in productive and profitable activities in recent years. Mendoza now has a motorcycle that has greatly improved their standard of living improving their access to commercial and social facilities.

Animals have a role in the farming system. Currently there are 5 cows, 8 pigs, 8 ducks and 30 chickens. These Animals provide important sources of protein for the family. The sale of meat and cheese surplus to family needs are important sources of supplementary income.

Some four hectares of land remained in forest when Mendoza started to farm the property in 1985. In the first year 0.5 ha were cultivated planting maize, mandioca and cotton. Two hectares were cultivated the following year consisting of 1 ha of soybeans and a variety of food crops mandioca, maize, mani, sandia, arroz and batata.

Over the following six years up to and including 1992, the cultivated area was increased each year. The main crop was soybeans when between 3.5 - 5 ha per year were grown. When there was sufficient cultivated ground available, 0.5-1 ha of cotton was also planted. Technical assistance from DEAG (Magin Meza) was first obtained in 1989 when the Comite Paso Ita was formed. Most of the remaining forest, a total of 3.5 ha, was cleared during 1990-91 and the first area of yerba mate (1 ha) was planted. In 1992, Mendoza first planted green manure crops (0.2 ha of acevem), kiri (100 trees) and tung (0.5ha), marking the beginning of a major transition in the farming system. The last planting of soybeans (3.5 ha) was in 1992.

This period under conventional cultivation was characterised by markedly falling soybean yields. Initially the crop yielded about 3,000 kg/ha. This reduced to around 2,000 kg/ha over six years. The lowest yield in any year was 800 kg/ha and in Mendoza’s opinion the yield of soybeans was declining "rapidly". The crop was always planted in the same plots to facilitate mechanical operations.

Sr. Mendoza also noted a decline in maize yield under conventional cultivation. In the best year maize yielded 1,200 kg/ha and in the worst year 300 kg/ha.

Cotton was rotated around the farm and produced about 1,200 kg/ha. A yield decline of cotton though was not noted.

Contour banks were constructed over 4 ha of the farm in 1993. These were formed manually by Sr. Mendoza and his wife using hand hoes. A total of 20 person-days were allocated to this reflecting the concern they had to try and conserve their soil which was rapidly eroding away. An attempt was also made to rotate crops, although as already noted, soybeans were always planted in the same area to facilitate soil cultivation and sowing operations by tractor and mechanical harvesting.

After 1992, when conventional cultivation was replaced with green manure crops and no-till, the system underwent a series of evolutionary changes. These changes to the farming system can be traced in Appendix A1.2. Essentially soybeans and cotton as the income-earning crops have been replaced with yerba mate, kiri, tobacco, mani, the sale of green manure crop seeds (canavalia, guandu and lab-lab), tobacco, mani and mandioca. Meat and mandioca flour (almidon) provide important sources of supplementary income. Tung and forestry trees will provide important sources of income in the future as the trees that have been planted in recent years mature.

No-till has offered the possibility to further diversify the farming system, reduce production costs and eliminate dependency on hired labour and machinery. Noteworthy also is that it has halted in a cost-effective way the debilitating decline that was occurring in crop yields. While the complexity of the operation and management of the farm has increased, income has risen substantially (see below) and risks are much lower compared to the system under conventional cultivation. This is because:

• the farming system is no longer so dependent on soybeans, where variations in yield and price resulted in widely fluctuating income;
• crop yields were following downward trends exposing the farming system to greater risk and lowered profits;
• costs are substantially reduced since the hiring of labour, tractors and work oxen is no longer required reducing the need for short-term credit which small farmers consider expensive and risky.

The farming system is presently highly diversified and complex. Most of the crops are planted in areas which are intercropped. Green manure crops now have an important function in terms of providing soil cover and to prevent soil erosion and to enrich the soil through the nitrogen fixation, the addition of organic matter and through the provision of other residual nutrients. The products sold are mandioca, almidon, mani, tung, yerba mate, kiri, tobacco, green manure crop seeds, chickens, pork, beef and milk and cheese. A wide range of food products are also produced, viz. poroto, maize, batata, peas, rice, diverse garden vegetables, honey and fish (tilapia). Given that the farm is within a relatively cool valley-bottom micro-climate, there is scope for further diversification. This could include various subtropical fruits that would improve the nutritional intake of the family and provide additional sources of income.

Labour requirements have fallen significantly. Referring to Tables 5 and 6 below it can be observed that labour needs for the farm under conventional cultivation were 181 person-days per annum, while under no-till it has reduced to 132 person-days, a reduction of 37%. This significantly reduces farm costs.

The lower costs/higher profits that were immediately apparent when the system was modified, enabled substantial investment in permanent crops and other activities– tung, yerba mate, agro-forestry, seed production of green manure crops, fish production and bee-keeping. In addition the Mendoza’s have been able to considerably improve their standard of living through the purchase of a motor cycle, an electric-powered water supply system and various domestic appliances including a refrigerator and TV and have been able to increase the size of their house.

During the interview Sr. Mendoza mentioned the following benefits of the no-till system:

• Increased income and profit at the same time work effort is less
• His soil is protected now from erosion
• Does not have to hire a tractor anymore and only on rare occasions is it necessary to hire work oxen
• His soils are recuperating, organic matter and soil fertility have increased and consequentially crop yields have risen and are more stable
• Now produces his own green manure crop seeds and sells surplus to his own requirements providing extra income
• The use of green manure crops has reduced the incidences of weeds. Much less time now spent weeding which he devotes to fish production, tending to his vegetable garden, looking after his animals and community activities
• Increased his diversity of crops and income. Crop diversity/rotations have reduced incidences of pests and diseases - e.g. in yerba mate no insecticide is now necessary whereas before had to spray 3-4 times per year with monocrotophos
• Reduced reliance now on soybeans or cotton as sources of farm income
• Now has a sustainable production system
• Increased income and improved lifestyle. Invested in more permanent crops (tung, yerba mate, agro-forestry trees), fish tanks, bee production, water tank and electric water pump.

When asked what costs or inconveniences are associated with no-till, Sr. Mendoza noted the following:

• Shortage of information on how to no-till
• More complicated system of production necessitating technical assistance
• Needs access to long-term credit
• Requires access to green manure crop seeds
• Extra cost in herbicide for weed control
• Neighbours intentionally burned his crop residues.

Sr. Mendoza does not plan to increase his farm size. He instead wishes to further diversify and intensify production on his existing area and to remain self-sufficient in labour not having to contract labour. When asked what specific future plans he had, Sr. Mendoza mentioned the following:

• Expand fish and honey production
• To educate his children
• Increase area of yerba mate
• Increase the number of agro-forestry trees
• Increase the number of cattle to 10 cows.

Full details of the financial analysis of Sr. Mendoza’s farm can be found in Appendix A1.2, Section A1.2.2. The financial analysis compares the financial results of the farm under conventional tillage prior the introduction no-tillage and green manure crops in 1992 to his current situation 6 years later. The same input and product prices (May 1998) are used for the two situations analysed (conventional cultivation and no-till). In addition, "expected" crop yields are used. Those under conventional cultivation are average yields realised during the latter years in conventional tillage, while those under no-tillage (present) are also averages based on Sr. Mendoza’s experience with no-till and green manure crops to date.

In order to compare the financial performance of the farming system under both conventional cultivation and no-till, the areas and yields of the permanent crops (viz. yerba mate, tung and kiri) planted before 1992 were considered to be the same for the two situations.

In the financial analysis, all activities have been valued separately. The improved soil fertility status of the farm is reflected in the higher yields of mandioca and maize under the no-till/green manure crops compared to those realised under conventional cultivation. A simplification has been made in the case of the diverse food crops. The relatively small area (about 0.2 ha – see Table 6), of poroto, mani and vegetables, which are grown solely for the purpose of family consumption, has been valued on the basis of mandioca, mani and maize. This simplification was necessary as there was insufficient time to value all of the crops separately. One further simplification made is that the income derived from the production of small animals and the preparation of mandioca flour (almidon), has not been included. To have done so would have complicated the analysis. Since the income derived from these activities would be about the same under both conventional cultivation and no-till, there exclusion does not affect significantly the comparative financial performance of the farm under the two systems analysed.

The financial performance of the farm when the conventional cultivation system was used is summarised in Table 5.

The total farm net income is estimated at US$1,960 and the total labour used at 181 person-days. The return to labour was calculated at US$10.85 per day.

The current situation under no-till and green manure crops is shown in Table 6.

Six years after the adoption of green manure crops and no-till on his farm, annual net farm income has risen to US$3,184. This is 62% higher than it would have been under conventional cultivation. At the same time the annual labour requirement has fallen from 181 person-days to 132 person-days. The return to labour is calculated at US$24.15 per day, over double that under conventional cultivation.

The most important sources of net farm income are yerba mate (total of US$1,433 which is 45% of the total farm income), kiri (21% of the total) and the sales of green manure crop seeds (total of US$381, 12% of the total). Mandioca and tung are also important at 11% and 5% respectively of the total farm net income.

The main reasons for the much improved financial performance of the farm are: 

• the savings in total labour costs;
• the elimination of the costs of soil cultivation;
• reduced weeding costs;
• higher crop yields;
• a move to more profitable production activities.

The financial performance of each activity can be seen by comparing the per hectare net incomes of each activity in Tables 5 and 6. Considerable variation is evident between the different crops and for the same crops under the two farming systems. The yields, input requirements, prices and costs of each crop/activity are detailed in Appendix A1.2.2, Tables 2-18. Comparisons between crops and production systems can be drawn from these tables. For example, in the case of maize under conventional cultivation (refer to Appendix A1.2.2, Table 5) the average yield was 1,500 kg/ha and per hectare revenue US$107. In contrast, maize under no-till in combination with mucuna (see Appendix A1.2.2, Table 6), the yield of maize has risen to 4,000 kg/ha and the per hectare revenue rose to US$286. The costs of production of maize under conventional cultivation totalled US$151/ha while under no-till the cost of production of maize alone is US$129/ha. However, since mucuna is an integral part of the maize production system, considering the cost of producing maize and mucuna in combination, the total production cost is US$249/ha. The net income (ie revenue less total costs) of maize alone under conventional cultivation was minus US$43/ha while that of maize/mucuna is positive US$36/ha, which is a substantial rise.

One of the most significant savings is the elimination of soil cultivation under no-till. The per hectare costs of soil preparation for each of the main crops under conventional tillage incurred by Sr. Mendoza are summarised in Table 7 below. Cost savings are US$27/ha where one ploughing was done in the case of maize and mandioca and US$41/ha for mani where one ploughing plus one harrowing was normally needed.

Another saving under no-till compared to conventional cultivation is lowered weeding costs. For example, for mandioca under conventional cultivation, four weedings were necessary costing a total of Gs180,000/ha or US$64/ha (Appendix A1.2, Table 9). Under no-till, mandioca grown after avena, two applications of roundup are needed plus two manual weedings (Appendix A1.2, Table 10), the total costs for which, including the cost of herbicide application, are Gs135,000/ha or US$48/ha, which is 25% less than under conventional cultivation.

2.4.3. No-till Case Study Type II – Sr. Florencio Ozune

The farm of Florencio Ozune is representative of the Type II farms of 15-20 ha where no-till is done with oxen. These farmers have their own pair of working oxen. Florencio’s property of 18 ha, was first farmed by his brother in 1972. At this time it was completely covered in native forest. In 1975, 2 ha of tung were planted and by 1986 when Florencio took over the property 11 ha had been cultivated and 7 ha remained in native forest. Soybeans was the main crop. In 1997 Florencio purchased an additional 4 ha of land 400 m from his farm which is used for grazing cattle.

The farm is worked by Florencio, his wife and one adult permanent farm worker who lives on the farm. Two adult sons live in Buenos Aires. Florencio is a member of the Colonias Unidas Co-operative from whom he obtains his credit.

Animals have always been an important part in the farming system. Currently there are 6 cattle (one pair of work oxen, 2 younger bulls, 1 milking cow and 2 heifers), 13 pigs, 20 ducks and 25 chickens. The small animals provide protein supplements for the family and important sources of supplementary income.

A diverse range of tools and machinery are owned by Ozune. These include the normal range of hand-tools, small mandioca flour machine and a motorised stationery thresher (used previously for threshing soybeans). Sr. Florencio also has access to a wide range of manual and animal-traction no-till machinery that was provided by the MAG-GTZ project. The use of this machinery is controlled by the Small Farmer No-till Association. Florencio is the president of this association.

Since taking over the farm in 1986 Florencio continued to cultivate about 11 ha each year. Most of this area, normally about 7 ha, was planted in soybeans. In addition about 1.5 ha of cotton, 2 ha of maize, 0.5 ha of mani and diverse food crops on a small area of about 0.25 ha. In 1990 5 ha of tung and in 1992 1 ha of yerba mate were planted leaving only 1 ha in natural forest. All cultivation was done with oxen and soybeans were planted nearly always in the same location to facilitate mechanical harvesting. No specific soil conservation measures were undertaken.

Crop yields were declining rapidly under conventional cultivation. On newly cleared land soybeans yielded 3,500-4,000 kg/ha and then slumped to about 1,200 kg/ha. Maize and cotton yields also dropped. Average maize yields fell from 3,500 kg/ha to 2,500 kg/ha, while cotton was not so marked falling from 2,000 to 1,500 kg/ha.

No-till and green manure crops were introduced in 1993. One hectare of maize followed by mucuna were planted. The following year (1994) this area was directly sown with cotton and a further 1.5 ha were directly sown with soybeans followed by out-of-season maize. In 1995 these areas were directly sown in avena followed by directly drilled soybeans. Also in 1995 an additional 1 ha of yerba mate was planted.

After only five years in no-till, yields of the major crops have noticeably risen. Soybeans over the last two seasons have averaged 3,000 kg/ha, cotton 2,400 kg/ha and maize 3,500 kg/ha. Florencio is pleased with his progress and would never revert back to conventional cultivation. Increased income has enabled him to purchase an additional 4 hectares of land with the aim of increasing his cattle numbers. He is also considering purchasing his own no-till equipment probably in association with 2 or 3 other farmers. The motivation for this is that the association’s equipment is shared by too many farmers and it is not always available when he needs it. Some 7 permanent users and a number of other farmers sometimes compete for it. There are also problems with machinery being returned after use not greased or incorrectly regulated. The latter is particularly a problem with the sprayers. Florencio is prepared to borrow money to purchase this equipment, but needs in his opinion a term loan for at least 5 years.

According to Florencio, he is deriving the following benefits from no-till:

• He has eliminated soil erosion
• The fertility of his soil is recuperating
• Extra forage for animals in winter (acevem/nabo)
• Saves time – no need to prepare the soil for planting and less time spent weeding
• Eases work load – more time now for other activities
• Reduced reliance now on soybeans or cotton as sources of farm income
• More easy to control weeds than in conventional tillage
• Sustainable form of farming

When asked what were the costs/inconveniences associated with no-till, Florencio mentioned the following:

• Technically more demanding and technical assistance is essential
• Very few extensionists understand no-till and there is a need for specific training
• Regulation of sprayers is very important
• Sharing of no-till equipment not easy – not always available on time and not always properly maintained
• Really needs access to long-term credit
• Requires access to seeds of green manure crops
• Extra cost in herbicide for weed control
• Many farmers who see his farm consider it to be untidy with many weeds

Full details of the financial analysis of Sr. Florencio’s farm can be found in Appendix A1.3. The analysis compares the financial results of the farm under conventional tillage before Sr. Florencio introduced no-tillage and green manure crops to his current situation 5 years later. The same input and product prices (May 1998) are used in analysing the two situations and in both "expected" crop yields are used. Those under conventional cultivation are average yields being realised in the latter years of conventional tillage, while those under no-tillage are also averages based on five-years experience with no-till and green manure crops.

In order to compare without bias the financial performance of the farming system under both conventional cultivation and under no-till, the areas and yields of the two permanent crops (viz. yerba mate and tung) were considered to be the same.

The relatively small area of food crops (about 0.25 ha) of poroto, mani and vegetables grown solely for the purpose of family consumption have been valued based on mandioca, mani and maize, assuming one third of each.

The financial performance of the farm under conventional cultivation is summarised in Table 8.

The total net farm income under conventional cultivation is estimated at US$2,844. Under this scenario, tung would have been the most important source of farm income. Soybeans would have also been a substantial part of the farm income, while cotton, yerba mate, mani, maize and cattle would have contributed less to farm income but would have nevertheless been important.

The total farm labour requirement is calculated at 300 person-days. The return to labour was calculated at US$9.47.

The current situation under no-till and green manure crops is shown in Table 9.

Five years after the introduction of green manure crops and no-till on this farm, net farm income has risen to US$3,853, 35% above that under conventional cultivation. At the same time the farm labour requirement has fallen by 20% to 239 person-days. The return to labour has risen quite impressively from US$9.47 per day to US$16.14 a 70% increase.

There are a number of contributing factors to the increase in the financial performance of the farming system. While yields have increased for the major crops grown in the no-till system compared to the conventional system of cultivation, there have also been significant cost reductions. The detailed income and cost calculations of each crop/activity on the farm under conventional cultivation and no-till are presented in Appendix A1.3.2, Tables 2-15. A detailed analysis of these tables reveals the changes in income and costs under the two systems. For example, for soybeans, net income rises from US$132/ha under conventional cultivation (see Appendix A1.3, Table 12) to US$233/ha in no-till when soybeans are grown after avena where the costs of growing the green manure crop are included in the net income figure (see Appendix A1.3, Table 13). Labour requirement falls from 17 person-days under conventional cultivation to 7 person-days under no-till which is a considerable cost saving.

The costs of soil preparation in conventional cultivation were quite high and are saved when no-till is used. The per hectare costs of soil preparation for each of the main crops incurred by Florencio are shown in Table 10.

In the case of all of these crops one ploughing and one harrowing was carried out. The total cost savings of these two operations is US$32-US$38/ha which account for 10% to 21% of the total production cost of these crops.

Herbicides, primarily roundup, have become an integral part of the no-till system. This has significantly reduced the need for manual weeding. Details of the herbicides used and their costs can be seen in the crop budgets tabled in Appendix A1.3.2

2.4.4. No-till Case Study Type III – Sr. Victor Ramirez

Victor Ramirez was selected as being representative of the Type III farmers. These farms are of at least 18 ha and the farmers do not own their pair of own work oxen. Victor started to farm his 19.5 ha property in 1974. At this time it was virgin land completely covered in native forest. In the first year 4 ha of forest were cleared and in the following year 2 ha of soybeans and some girasol were planted. By 1979 the forested area had been completely felled.

The farm is worked by Victor, his wife, their son of 19 years of age and two teenage daughters who still go to school. Labour is often contracted for harvesting and work oxen are contracted for direct sowing of crops. Under the conventional cultivation system tractors were contracted for cultivation and sowing operations. Soybeans have been harvested mechanically, also under contract, since 1989.

Victor is no longer a member of the Colonias Co-operative but is a socio of the newly established Ka’aguyPoty. Ltd. Credit is obtained from the CAH.

The Ramirez’s also have a small trading shop (amazem) attached to their house, which provides supplementary income. Because of its main road location, trading of crops is facilitated. Much of the farm’s produce is sold directly to traders passing-by their farm gate .

Animals are an important part in the farming system. In May 1998 there were 5 cows, 20 pigs (12 sows and 8 fattening pigs) 6 cattle (one pair of work oxen, 2 younger bulls, 1 milking cow and 2 heifers) and 84 chickens.

A minimal range of manual tools and machinery are owned by Victor. In addition they own 2 bicycles. A motorcycle is owned by their son. Sr. Victor also has access through the Small Farmer No-till Association to a wide range of manual and animal-traction no-till machinery that was provided by the MAG-GTZ project.

Sr. Victor and his wife are entrepreneurs. They first established their amazen in 1976, closed it in 1979 and reopened again in 1984. Non-repayment of debts owed by customers forced the closure. Title to their farm was obtained in 1980 that provided them with more security for raising finance. During the interview Victor mentioned that many of their small farmer neighbours have been forced to sell their farms as debts with the co-operative or local traders mounted to unsustainable levels in response to declining crop yields especially of soybeans. He himself experienced financial stress on a number of occasions due to low yields of soybeans, girasol or maize. Hybrid maize was planted for the first time in 1995. It was also fertilised (200 kg NPK/ha). The crop failed due to drought. On each occasion, Victor was left having to repay funds borrowed to finance the costs of seed, fertiliser and soil cultivation, etc. In Victor’s opinion, the modification of his farming system in 1992 has saved them from inevitable financial ruin. Since this time they have been able to recover financially and now consider themselves in the healthiest financial position they have ever been in.

Soybeans was the main crop. From 2 ha planted in 1975 the area was gradually increased reaching 8 ha in 1985. This area was maintained every year up to 1992 when no-till was introduced on the farm. Girasol was an important part of the conventional cultivation system being a winter crop. Some 3-4 ha were grown each year. The last year it was grown was 1990. Declining yields and prices rendered the crop no longer a viable proposition. Cotton was also grown for income, stabilising at about 2 ha each year. About 1 ha of maize and 1 ha of mani provided additional income.

Crop yields were declining rapidly under conventional cultivation. On newly cleared land soybeans yielded 3,000-3,500 kg/ha. Yields declined to as low as 800 kg/ha. Initially cotton yielded 3,500-4,000 kg/ha and by 1992 had fallen to 2,000-3,000 kg/ha. Mandioca yielded about 15 t/ha with no noticeable difference in yield over the years. Maize, which was always planted on the most fertile land, fell from about 3,500 kg/ha to 3,000 kg/ha. Mani yields fell from about 1,800 kg/ha to 1,600 kg/ha.

Prior to the introduction of green manure crops and no-till, no soil conservation measures were used.

No-till and green manure crops were introduced in 1992. Three hectares maize and mucuna were sown followed by directly sown soybeans. In the same year 2.5 ha of yerba mate were planted and 3 ha of tung in 1993. Over the subsequent years gradually the area of no-till was increased on the farm.

The system under no-till is still evolving. While it is more complex than the conventional cultivation system with more crops being grown, many of them interplanted with other crops, it is nevertheless less risky. Farm income is now less dependent on soybeans and cotton which are quite risky crops to grow. The no-till system is also much more profitable than conventional cultivation (see below). Avena is the main green manure crop preceding soybeans, cotton, maize/mucuna, mani and mandioca. In 1997 it was grown on a total of 13.25 ha. In 1998 avena before soybeans was substituted with a mixture of acevem and nabo. In 1996 100 kiri trees were planted and in 1997 green manure crop seeds were first harvested. In 1998 seeds of mucuna, lab-lab and canavalia were harvested. Zapallo and poroto were interplanted with cotton following avena increasing farm income.

After six to seven years of no-till, crop yields have risen. Last year, an average of 2,780 kg/ha of soybeans were harvested in an area which yielded 800 kg/ha in 1992 following 17 years of conventional cultivation. Under no-till, mandioca planted after avena has been yielding 22 t/ha up from 15 t/ha in the conventional system. Under no-till maize is planted with mucuna and yields again average about 3,500 kg/ha close to the levels achieved on virgin land following deforestation. Mani yields have been restored to about 1,800 kg/ha, which is what they were following deforestation.

Herbicides, especially roundup, are used in the no-till system to control weeds and reduce the need for manual weeding. Details of the herbicides used are provided in the crop budgets tabled in Appendix A1.4.2.

According to Victor, he is deriving the following benefits from no-till:

• Recuperating the fertility of his soil
• Higher soybeans yields
• Lower production costs of all crops
• Eased work load – more time now for other activities, to relax and visit friends
• More relaxed now and not so worried about droughts or heavy rains
• Increased income and profit

When asked what were the costs/inconveniences associated with no-till, Victor mentioned the following:

• No increases in costs are perceived
• Specialised technical support is essential

Full details of the financial analysis of Sr. Victor’s farm can be found in Appendix A1.4. The analysis compares the financial results of the farm under conventional tillage before no-tillage and green manure crops were introduced to his current situation 6 years later. The same input and product prices are used (May 1998 values) to evaluate the situation before no-till was introduced and the current situation. In addition, "expected" crop yields are used; those under conventional cultivation are average yields which were obtained in the later years of conventional tillage, while those under no-tillage are also averages based on Sr. Victor’s experiences with no-till and green manure crops to date.

In order to compare the financial performance of the farming system under both conventional cultivation and under no-till, the areas and yields of the two permanent crops (viz. yerba mate and tung) were considered to be the same.

The financial performance of the farm under conventional cultivation is summarised in Table 11.

The total net farm income under conventional cultivation is estimated at US$2,905. Under this scenario, tung would have been the most important source of farm income. Soybeans would have been the second most important source of net farm income, while cotton, yerba mate and mani would have contributed less to farm income but would have nevertheless been important.

The total farm labour requirement is calculated at 379 person-days. The return to labour was calculated at US$7.66.

The current situation under no-till and green manure crops is shown in Table 12.

Six years after the introduction of green manure crops and no-till on this farm, net farm income has risen to US$5,778. Compared to conventional cultivation, net farm income has almost doubled rising by 99%. At the same time the farm labour requirement has slightly fallen 8% to 350 person-days. The return to labour has risen quite impressively over-doubling from US$7.66 per day to US$16.52.

A number of factors contribute to this impressive rise in the financial performance of the farming system. Probably the over-riding factors have been the management capability and preparedness of this small farm family to make positive changes to their farming system. This has enabled them to profitably exploit the new production opportunities possible through the use of green manure crops and no-till. For example, the profitability of soybeans has risen from US$79/ha in conventional cultivation to US$236/ha. However, since mandioca is more profitable to grow than soybeans under no-till, and the demand for labour is much less for mandioca than soybeans, 7 hectares of mandioca are now grown while the area of soybeans has been reduced from 8 ha to 3 ha. Another striking example is the intercropping of zapallo and poroto with cotton which has provided a per hectare net income of US$500/ha compared to a net income from cotton of US$232 in the conventional system.

While yields have increased for the major crops grown in the no-till system compared to the conventional system of cultivation, there have also been significant cost reductions. The detailed income and cost calculations of each crop/activity on the farm under conventional cultivation and no-till are presented in Appendix A1.4.2, Tables 2-17. A detailed analysis of these tables reveals the changes in income and costs under the two systems. Among the most significant differences are:

1. yield increases in no-till;
2. savings in labour in no-till compared to conventional cultivation;
3. elimination of the costs of soil tillage in no-till.

For example, in the case of soybeans, labour requirement falls from 23.5 person-days under conventional cultivation to 4 person-days under no-till (see Appendix A1.4, Tables 14 and 15). For the same crop, net income rises from US$79/ha under conventional cultivation to US$236/ha in no-till when grown after acevem/nabo where the costs of growing the green manure crop are included in the net income figure.

The costs of soil preparation prior to sowing crops is high. These costs are saved when no-till is used. The per hectare costs of soil preparation for each of the main crops which were incurred by Victor are shown in Table 13.

In the case of all of these crops one or two ploughings and one or two harrowings were carried out. The total per hectare cost savings of these operations is US$32 to US$64/ha which account for 14% to 28% of the total production cost of these crops.

Significant savings in the cost of weeding have been realised in mandioca under no-till compared to conventional cultivation. The cost of weeding mandioca in the conventional system is Gs315,000/ha (US$113/ha). This has been reduced to Gs103,500/ha (US$37/ha) under no-till including the costs of herbicides and their application (see Appendix A1.4, Tables 9 and 10). Cost savings of US$76/ha have therefore been realised in mandioca. In cotton cost savings realised have been US$29/ha. For the other crops, experience to date has not seen savings in the cost of weed control.

A comparison can be drawn between the economics of conventional cultivation and no-till in the four farming systems analysed in this study. The results are summarised in Table 14.

The results suggest that green manure crops and no-till have the potential to substantially raise the profitability of small farms in Edelira. Furthermore, these technologies provide hope for these farms to be transformed from unsustainable farming systems to sustainable ones. This is a most important transformation with potentially high payoffs from economic, environmental and social viewpoints. It can be observed in Table 14 that in all three systems analysed, net farm income has increased markedly. Sr. Victor has made the most impressive increase (99%). This farming system, as well as that of Mendoza, has undergone more changes since the introduction of no-till than that of Florencio. Returns to labour have all shown major increases due to the increased net farm incomes being achieved with lower labour inputs than under conventional cultivation.

The precarious position of Sr. Bruno’s conventional cultivation system is obvious. The estimated net farm income of US$567/annum is very low reflecting the low productivity and relatively high cost structure of this system. These results are thought to be typical of many small farmers in Edelira where the yields of soybeans and cotton have reached low levels due to soil erosion. The financial viability and sustainability of these systems are clearly under threat.