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COVER CROPS PAYCover crops can deliver return on investment (ROI) within the first few years of use, but some can pay off in the first year...The USDA Sustainable Agriculture Research and Education (SARE) program produced a recent national report on cover crop economics, based in part on national farmer survey data and interviews with industry leaders like La Crosse Seed. Their goal? Identify potential cover crop ROI.
Check out their findings in 6 areas of potential ROI:*
PAY OFF #1: DROUGHT DEFENSEPOTENTIAL $58 PER ACRE• Increases macropore soil cavities:
» Helps water infiltration » Helps reduce water evaporation » Helps keep soils cooler
• Exponential resiliency benefits after 5 years
Growers have noticed cover crops’ ability to mitigate the negative effects of a drought. When a drought hit in 2012, stunted corn had 11% extra yield when planted on cover crop acres - soybeans had 14% extra yield. Resiliency benefits can achieve over $100 an acre after five years of continuous use.
PAY OFF #2: GRAZINGPOTENTIAL $49 PER ACRE• Save on hay• Livestock manure boosts soil health
You can graze livestock on cover crops for up to 30 to 60 days in the fall or spring. Returns will depend on the cost of typical industry feeds, along with other expenses such as electric fencing and water, but ROI can begin as soon as you start and grow with time.
PAY OFF #3: WEED SUPPRESSIONPOTENTIAL $27 PER ACRE• Cover crop biomass suppresses weed emergence• Can help manage herbicide resistant weeds
Cover crops allowed to grow enough to form a biomass blanket before cash crop can choke out weeds and may help manage herbicide-resistant weeds. That can mean lower cost on residual herbicides and fewer applications before and after planting. Cover crop use before soybeans may show positive ROI in year one and positive ROI in year two when used before corn.
*Reference: https://usfarmersandranchers.org/stories/economic-sustainability/six-cover-crop-benefits-that-pay/
COVER CROPS PAYCover crops can deliver return on investment (ROI) within the first few years of use, but some can pay off in the first year...
PAY OFF #4: NO-TILL BENEFITSPOTENTIAL $24 PER ACRE• Reduces soil crusting• Aids soil aeration• Enhances earthworm tunnels
Transitioning to no-till can correlate with low yields in the first year, likely due to inevitable increases in compaction and poor soil aeration. Cover crops compliment no-till by helping to mitigate these effects.
PAY OFF #5: COMPACTION RELIEFPOTENTIAL $15 PER ACRE• Winter rye & radish root systems break up compaction• Cover crops can increase yield better than only tilling
Cover crop root systems, such as those of winter rye or radishes, create channels that break up compaction. A 4-year Ohio State University study showed that compacted soils yield more when corn or soybeans are grown after cover crops, compared to annual tilling without cover crops.
PAY OFF #6: SAVING NUTRIENTSPOTENTIAL $10 PER ACRE• Cover crops help add & keep nutrients in soil• Combined with certain crops, ROI can grow exponentially over time
With long enough growth, cover crop legumes add nitrogen benefits to a following crop, and there is greater potential for cover crops to hold nitrogen and other nutrients in place as well. When used with corn, this could provide an exponential ROI of $40 per acre over time.
Soil First® products were designed to meet the needs of farmers and landowners looking to increase productivity by preserving and bettering their soils. Think “SOIL FIRST®” when making your cover crop planting decisions!
References:[1] Rob Myers, Alan Weber, Sami Tellatin. Cover Crop Economics: Opportunities to Improve Your Bottom Line in Row Crops. United States Department of Agriculture Sustainable Agriculture Research and Education web site. Accessed March 1, 2020, at https://www.sare.org/Learning-Center/Bulletins/Cover-Crop-Economics
[2] Alan Sundermeier, Randall Reeder. Tillage, Cover Crop, and Compaction Effect on Corn. Ohio State University Agronomic Crops Extension. Accessed March 1, 2020 at https://agcrops.osu.edu/sites/agcrops/files/ofr_reports/Tillage-Cover-Crop-and-Compaction-on-Corn-Yield.pdf
