One of the reasons growers choose not to use cover crops is because they don’t think the practice is profitable. However, like with any crop, it all comes down to each individual choice by a grower as to whether covers will be successful.
Alejandro Plastina, an associate professor and economist with Iowa State University Extension, recently presented during a webinar hosted by Iowa Learning Farms about several studies on cover crop adoption and economic considerations.
Plastina surmises that cover crop adoption rates are still low because cover crops are not profitable for most farmers in crop-only production systems. However, he notes that cover crops can be profitable under the right conditions when livestock are added to the mix.
One of the studies Plastina shared was done in 2016, evaluating 15 growers in Illinois, Iowa and Minnesota who did receive financial incentives for their covers. The study found that cover crops increased costs by $43.10 per acre, on average, with seed costs and seeding itself making up the largest portion of those added costs. Using herbicide for terminating covers cost $2.50 per acre. Growers saw their yields increase an average of $9 per acre.
Increased revenue with cover crops was $21.40 per acre, on average, leaving a deficit of $21.70 per acre.
A 2017 study evaluated 79 growers from Illinois, Iowa, Minnesota, and North Dakota who did receive financial incentives for seeding cover crops. The results from this study found that the average cost of seeding covers was $35-37 per acre. Growers saw an average yield loss of 2 bu/acre in corn but experienced a 3 bu/acre increase in soybeans. Cover crops before corn saw a reduction in economic returns of $21 per acre, while cover crops before soybeans merited a $25 increase per acre.
Although it appears that seeding cover crops before soybeans is more profitable in this case, growers were still losing $3 per acre.
Finally, Plastina shared results from a 2017 study of 674 growers in Iowa. This study found that the median added costs for covers in both corn and soybeans was $34-35 per acre, with yields being like fields without cover crops. Median net returns, including financial incentives, were a $15 per acre decrease for covers before corn, and a $19 per acre decline for covers before soybeans.
However, when livestock were added to the analysis, net returns went into the black when it was possible to graze or harvest the cover crop for hay. If livestock were part of the system, growers saw a net return of $7 per acre before corn, and $1 per acre for covers before soybeans.
Cover crops can be profitable if a grower makes smart decisions about implementing them. Adding livestock to the mix — whether owned by the grower or if the grower works with a livestock producer to graze or harvest covers as hay — can make the difference for some operations.
One of the reasons growers choose not to use cover crops is because they don’t think the practice is profitable. However, like with any crop, it all comes down to each individual choice by a grower as to whether covers will be successful.
Alejandro Plastina, an associate professor and economist with Iowa State University Extension, recently presented during a webinar hosted by Iowa Learning Farms about several studies on cover crop adoption and economic considerations.
Plastina surmises that cover crop adoption rates are still low because cover crops are not profitable for most farmers in crop-only production systems. However, he notes that cover crops can be profitable under the right conditions when livestock are added to the mix.
One of the studies Plastina shared was done in 2016, evaluating 15 growers in Illinois, Iowa and Minnesota who did receive financial incentives for their covers. The study found that cover crops increased costs by $43.10 per acre, on average, with seed costs and seeding itself making up the largest portion of those added costs. Using herbicide for terminating covers cost $2.50 per acre. Growers saw their yields increase an average of $9 per acre.
Increased revenue with cover crops was $21.40 per acre, on average, leaving a deficit of $21.70 per acre.
A 2017 study evaluated 79 growers from Illinois, Iowa, Minnesota, and North Dakota who did receive financial incentives for seeding cover crops. The results from this study found that the average cost of seeding covers was $35-37 per acre. Growers saw an average yield loss of 2 bu/acre in corn but experienced a 3 bu/acre increase in soybeans. Cover crops before corn saw a reduction in economic returns of $21 per acre, while cover crops before soybeans merited a $25 increase per acre.
Although it appears that seeding cover crops before soybeans is more profitable in this case, growers were still losing $3 per acre.
Finally, Plastina shared results from a 2017 study of 674 growers in Iowa. This study found that the median added costs for covers in both corn and soybeans was $34-35 per acre, with yields being like fields without cover crops. Median net returns, including financial incentives, were a $15 per acre decrease for covers before corn, and a $19 per acre decline for covers before soybeans.
However, when livestock were added to the analysis, net returns went into the black when it was possible to graze or harvest the cover crop for hay. If livestock were part of the system, growers saw a net return of $7 per acre before corn, and $1 per acre for covers before soybeans.
Cover crops can be profitable if a grower makes smart decisions about implementing them. Adding livestock to the mix — whether owned by the grower or if the grower works with a livestock producer to graze or harvest covers as hay — can make the difference for some operations.
