Economic and Marketing Information
FOR INDIANA   FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana
January  30,   1965
by P.  R. Robbins, Agricultural Economics1
Many Indiana farmers have greatly increased crop
yields in recent years. To do so, they have put together
a complete package of improved practices and newer
technologies such as: proper fertilization, improved
varieties or hybrids, higher population, earlier planting,
improved weed and insect control, improved harvesting
methods and better drainage.
The need for putting together the "complete package"
can not be over-stressed. Just one weak link, such as
poor drainage or insufficient plant population, can eliminate the possibility of making a profit. As yield moves up,
it is important to keep everything in balance. Drainage
that was good enough for a 100-bushel corn yield level
may not be good enough for attaining 125-bushel yields
year after year.
Due to the amount and distribution of rainfall in most
areas of Indiana during the past few years, good drainage
has not appeared to be so important as in some earlier
periods. However, long-time weather records indicate that
wet seasons can again be expected. A wet, late spring
resulting in considerable yield reduction would be more
costly now than it would have been 10 years ago since
advancing production practices have meant advancing
per acre costs.
How  much  does poor  drainage affect yields?
Yield response from improved drainage is extremely
difficult to measure. For example, if one invests in additional drainage and then several relatively dry years
follow, the investment may not appear justified. If one
does not select a good hybrid, have adequate plant population or control weeds, the added drainage investment
likely will not be profitable. The returns to additional
investments for drainage will be different for each farm
situation since the need for drainage, the general level
of crop management, etc., will be different for each farm.
Experimental results and farmer experience show the
following  response  to  improved  drainage:
In plot tests at Herbert Davis Forestry Farm during
1962-64, the Blount silt loam, on which water can not
pond, produced an average of 123, 100 and 105 bushels
of corn per acre where tile was spaced at 25, 50 and 100
feet, respectively.2
On 304 fields of corn in west central Indiana in 1961,
cooperating farmers rated drainage as excellent, good and
fair. Corn yields based on drainage rating were as fol-
1 The author wishes to thank Don Sisson and Harry Galloway,
Purdue agricultural engineer and agronomist, for their help in
preparing this article.
2 Incomplete data from research project which will be continued for several more years.
lows: excellent drainage fields, 98 bushels; good drainage
fields, 91 bushels; and fair drainage fields, 82 bushels
per acre.
On Paulding soils in Ohio from 1954-56, corn yields
averaged 22 bushels higher, soybeans, six bushels higher;
oats, 15 bushels higher; and wheat, four bushels higher
where drainage was above average as compared with
fields where drainage  was below  average.
What determines the profitability of drainage?
Before investing in added drainage one should appraise the following factors:
(1) Yield increase expected from improved drainage.
This will largely depend upon: (a) how badly drainage
is needed and (b) level of management of the operator
in crop production. Usually one drains areas most in
need of drainage before moving to other parts of the farm.
Thus added drainage usually encounters diminishing returns per dollar invested.
(2) Crops to be grown, since they influence the profitability of improved drainage. In Indiana, corn can usually
pay for much more drainage investment than can lower
profit crops such as oats and pasture.
(3) Price expected for added production. During the
1959-63 period, the average per bushel harvest price
for corn and soybeans has been about $1.00 and $2.20,
respectively. Prices at this level were assumed in computing returns to improved drainage.
(4) Amount of capital available and alternative investment opportunities for this capital. Most farmers must
allocate scarce dollars among such things as improved
drainage, purchase of more land, new machinery and
equipment, more fertilizer and added expenditures for
the family.
Extensive drainage improvements require large, long-
term investments similar to the purchase of land. Thus,
farmers may often be torn between investment in additional land or extensive investment in drainage improvement. Return on land investments may be used in guiding
investments in improved drainage. During the past decade,
landlords have earned a curcent return of about 4 percent on land investments. The increase in land prices
has been at the rate of about 4 percent per year. Thus,
if improved drainage will earn a net return of 7 to 10
percent, such drainage should be as profitable as average
land investments. Badly needed drainage should give a
much higher return  than  this.
(5) Cost of added drainage, since this will greatly
influence its profitability. Complete tile drainage typically
will cost $100 or more per acre. Typical surface drainage
may run $25 per acre or more. However, costs may be