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Annual Net Returns to Cover Crops in Iowa

Author

Listed:
  • Plastina, Alejandro
  • Liu, Fangge
  • Sawadgo, Wendiam
  • Miguez, Fernando E.
  • Carlson, Sarah
  • Marcillo, Guillermo

Abstract

Despite the active promotion of cover crops as a key conservation practice, their adoption is very limited. We developed a series of partial budgets based on a statewide survey of Iowa farmers to evaluate the changes in net returns resulting from the incorporation of cover crops into a corn or soybean production system. The average net returns to cover crops use for farmers that did not use cover crops for grazing livestock or forage were consistently negative across different planting and termination methods, tillage practices, and experience levels. Only farmers that used cover crops for grazing livestock or forage, and received cost-share payments tended to derive net positive returns from cover crops use. Our results can be used as benchmarks for current or potential cover croppers, and for ground-truthing agricultural and conservation policy design.

Suggested Citation

  • Plastina, Alejandro & Liu, Fangge & Sawadgo, Wendiam & Miguez, Fernando E. & Carlson, Sarah & Marcillo, Guillermo, 2018. "Annual Net Returns to Cover Crops in Iowa," ISU General Staff Papers 201802280800001038, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201802280800001038
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    References listed on IDEAS

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    1. Plastina, Alejandro & Liu, Fangge & Sawadgo, Wendiam & Miguez, Fernando & Carlson, Sarah, 2018. "Partial Budgets for Cover Crops in Midwest Row Crop Farming," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2018.
    2. Arbuckle, J. Gordon, Jr., 2015. "2012 Iowa Farm and Rural Life Poll: Rural issues and quality of life," ISU General Staff Papers 201512101558191229, Iowa State University, Department of Economics.
    3. Arbuckle, J. Gordon, Jr. & Lasley, Paul, 2015. "2012 Iowa Farm and Rural Life Poll: Pest resistance and certified conservation," ISU General Staff Papers 201512101604181231, Iowa State University, Department of Economics.
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    Cited by:

    1. Nisarga Kodadinne Narayana & William L. Kingery & Alayna A. Jacobs & Jon K. Allison & Shankar Ganapathi Shanmugam, 2022. "Effects of Tillage and Winter Cover Management in a Maize Soybean Rotation on Soil Bacterial and Fungal Community Composition," Land, MDPI, vol. 11(12), pages 1-14, December.
    2. Wallander, Steven & Smith, David & Bowman, Maria & Claassen, Roger, 2021. "Cover Crop Trends, Programs, and Practices in the United States," Economic Information Bulletin 309562, United States Department of Agriculture, Economic Research Service.
    3. Seojeong Oh & Benjamin M. Gramig, 2023. "Valuing Ecosystem Services and Downstream Water Quality Improvement in the U.S. Corn Belt," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(3), pages 823-872, August.
    4. Sawadgo, Wendiam & Zhang, Wendong & Plastina, Alejandro, 2019. "What drives landowners’ conservation decisions? Evidence from Iowa," ISU General Staff Papers 201905230700001082, Iowa State University, Department of Economics.
    5. Thompson, Nathanael M. & Reeling, Carson J. & Fleckenstein, Michelle R. & Prokopy, Linda S. & Armstrong, Shalamar D., 2021. "Examining intensity of conservation practice adoption: Evidence from cover crop use on U.S. Midwest farms," Food Policy, Elsevier, vol. 101(C).
    6. Megan N. Hughes & Michael R. Langemeier, 2020. "An Analysis of the Economic Effects of Cover Crop Use on Farm Net Returns per Acre in Central Indiana," Sustainability, MDPI, vol. 12(12), pages 1-9, June.
    7. Plastina, Alejandro & Liu, Fangge & Sawadgo, Wendiam, 2018. "Additionality in cover-crop cost-share programs in Iowa: a matching assessment," 2018 Annual Meeting, August 5-7, Washington, D.C. 274454, Agricultural and Applied Economics Association.
    8. Chen, Le & Rejesus, Roderick M. & Brown, Zachary S. & Boyer, Christopher M. & Larson, James A., 2020. "Adoption of Cover Crops under Uncertainty: A Real Options Method," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304391, Agricultural and Applied Economics Association.

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