Do cover crops pay Objectives Identify the costs of planting cover crops Explore the benefits and returns How do costs and benefits add up Longterm and offfarm benefits Resources for funding ID: 653829
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Slide1
An Introduction
to Cover Crop Economics
Do cover crops pay?Slide2
Objectives
Identify the costs of planting cover cropsExplore the benefits and returnsHow do costs and benefits add up?Long-term and off-farm benefits
Resources for fundingSlide3
First, what are the costs?
Cost per acre
Seed
$20-30
Planting the seed
$10-12
Terminating the cover crop
$0-10
Total
$30-50
Average cost for seed and seeding the cover crop: $37/acre,
b
ased on SARE/CTIC/ASTA cover crop survey data.Slide4
Photo
: Rob Myers
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.Slide5
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.
2-12% yield increases reported in corn and soybean crops planted after a cover crop
Benefits and returnsSlide6
Increases in soybean yield over
time (years) since starting the use of cover cropsSlide7
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 Aaron Roth
Photo by Rob MyersSlide8
Returns
Return per acre
Yield increase
$25
- 32
Nitrogen
fertilizer savings
$0-41
(corn)
$0-5 (soybean)
Weed and pest management
$0-23
Grazing opportunities
$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.Slide9
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.Slide10
Net Returns?
Cost per acre
Return per acre
Seed
$20-30
Yield increase
$25
-32
Planting the seed
$10-12
Nitrogen
fertilizer savings
$0-41
(corn)
$0-5 (soybean)
Terminating the cover crop
$0-10
Weed and pest management
$0-23
Returns
before grazing
Grazing potential income
$25-101
$19-38
Total
$30-52
Total potential return with grazing included
$44-139
Potential exists for positive net returns if cover crops are managed and utilized well.Slide11
Long-term returns
Build soil organic matter – improve nutrient cycling, soil moisture, and land value
Reduce soil compaction (potentially eliminate deep tillage)
Reduce disease pressure by increasing system diversity
Improve overall soil health – improve yields, increased resilience
Reduce erosion of soil
Mix of oats, radish, and triticale in
Holtwood
, PA on Steve Groff’s farm.
Photo by Edwin
RemsbergSlide12
Most farmers agree that cover crops can reduce yield variability during extreme weather events.Slide13
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
Off-farm returns
to societySlide14
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
RemsbergSlide15
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.”Slide16
Takeaways
Many see cover crops as a long term investment in their soil health and productivityThe 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.Slide17
Resources for funding
NRCS Environmental Quality Incentives ProgramNRCS Conservation Stewardship ProgramSARE Program Farmer Rancher grants
State cost-share programsSlide18
Thank you!
Photo by Edwin
Remsberg