An Introduction to Cover Crop Economics Do cover

An Introduction to Cover Crop Economics Do cover crops pay?

Objectives • Identify the costs of planting cover crops • Explore the benefits and returns • How do costs and benefits add up? • Long-term and off-farm benefits • Resources for funding

First, what are the costs? Cost per acre Seed $20 -30 Planting the seed $10 -12 Terminating the cover crop Total $0 -10 $30 -50 Average cost for seed and seeding the cover crop: $37/acre, based on SARE/CTIC/ASTA cover crop survey data.

Incorporating cover crops into the cropping system may require adapting current equipment or hiring someone to do the planting equipment, possibly with a high clearance seeder which allows the planting of a cover crop before a cash crop is harvested. Photo: Rob Myers

Benefits and returns 2 -12% yield increases reported in corn and soybean crops planted after a cover crop Crop Year Corn Soybeans 2012* 9. 6% 11. 6% 2013 3. 1% 4. 3% 2014 2. 1% 4. 2% 2015 1. 9% 2. 8% Data provided from farmers in the SARE/CTIC national cover crop survey. Differences are statistically significant based on analysis by Purdue University. 2012 was a major drought year, where cover crop benefits were striking due to better soil moisture management.

Increases in soybean yield over time (years) since starting the use of cover crops

Cover crops can also add to a farm’s bottom line by sometimes reducing the need for inputs like fertilizer or pesticides and by adding an opportunity to graze livestock on cover crops as a high value forage. Photo by Rob Myers Photo by Aaron Roth

Returns Return per acre Yield increase Nitrogen fertilizer savings Weed and pest management Grazing opportunities $25 - 32 $0 -41 (corn) $0 -5 (soybean) $0 -23 $19 -38* *Based on stocking two head of cattle per acre for one to two months at Missouri land leasing values for animal grazing. This may undervalue the high quality of cover crop fall forage compared to existing pasture grass.

Crimson clover Photo: Rob Myers Legume cover crops fix atmospheric nitrogen and may therefore provide nitrogen to other crops and may reduce fertilizer-related input costs.

Net Returns? Cost per acre Seed Planting the seed Terminating the cover crop Return per acre $20 -30 Yield increase $10 -12 Nitrogen fertilizer savings $25 -32 $0 -41 (corn) $0 -5 (soybean) Weed and pest $0 -10 management Returns before grazing Grazing potential income Total potential return $30 -52 with grazing included Potential exists for positive net returns if cover crops are managed and utilized well. $0 -23 $25 -101 $19 -38 $44 -139

Long-term returns ü Build soil organic matter – improve nutrient cycling, soil moisture, and land value ü Reduce soil compaction (potentially eliminate deep tillage) ü Reduce disease pressure by increasing system diversity ü Improve overall soil health – improve yields, increased resilience ü Reduce erosion of soil Mix of oats, radish, and triticale in Holtwood, PA on Steve Groff’s farm. Photo by Edwin Remsberg

Most farmers agree that cover crops can reduce yield variability during extreme weather events.

Off-farm returns to society § Less sedimentation in streams and rivers § Reduced movement of pesticides off of farms § Reduced nutrient loading of surface waters – local rivers, lakes, and even further to areas like the Gulf of Mexico § Increased sequestration of carbon into the soil § Benefits for wildlife, pollinators § Countryside value – greener landscape fall to spring

Landscapes are connected by air and water. Cover crops not only benefit the farmer but also benefit society, through off-farm returns in water and air quality enhancement and the creation of habitat for pollinators. Photo by Edwin Remsberg

From the farmers: “Cover crops are a long term investment in improving your soil biology. ” “Start small with crops that winter kill. Realize that the real benefits will come with time. Proper mindset is crucial. ”

Takeaways • Many see cover crops as a long term investment in their soil health and productivity • The profitability of cover crops depends upon each particular enterprise and management decisions. • Cover crops should be managed and planned for like any other part of the enterprise. • It may take a trial and error process to get the system that works best.

Resources for funding • NRCS Environmental Quality Incentives Program • NRCS Conservation Stewardship Program • SARE Program Farmer Rancher grants • State cost-share programs

Thank you! Photo by Edwin Remsberg