The complementary interaction between topsoil depth and technical progress for winter wheat in the Palouse region was found to strengthen the long run payoff to conservation tillage. Nonetheless, conservation tillage was found to be competitive with conventional tillage only if its current yield disadvantages were eliminated. Conservation tillage was relatively more competitive on shallower topsoils and for longer planning horizons. Short-term subsidies coupled with research directed towards reducing the cost and yield disadvantages of conservation tillage in the Palouse were advocated to maintain long-term soil productivity.