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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 adop-tion 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 crop use for farmers who 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 who used cover crops for grazing livestock or forage and received cost-share payments tended to derive net positive returns from cover crop 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," Journal of Applied Farm Economics, Purdue University, vol. 2(2).
    • Handle: RePEc:ags:pujafe:303000
    DOI: 10.22004/ag.econ.303000
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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, "undated". "Cover Crop Trends, Programs, and Practices in the United States," Economic Information Bulletin 309562, United States Department of Agriculture, Economic Research Service.
    3. Yu, Shuo, 2025. "Social Returns to Conservation: EQIP, Cover Crops, and Water Quality in the Midwest," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360735, Agricultural and Applied Economics Association.
    4. 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.
    5. 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.
    6. 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).
    7. 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.
    8. Wongpiyabovorn, Oranuch, 2025. "Alternative Policy Designs to Help Farmers Select Profitable Conservation Practices," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360631, Agricultural and Applied Economics Association.
    9. Bowman, Maria & Ferraro, Paul J. & Fuller, Kate Binzen & Gramig, Benjamin & Mosheim, Roberto & Njuki, Eric & Pratt, Bryan & Rejesus, Roderick & Rosenberg, Andrew, 2025. "Economic Outcomes of Soil Health and Conservation Practices on U.S. Cropland," Economic Research Report 358985, United States Department of Agriculture, Economic Research Service.
    10. 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.
    11. Johnson, Trevor & McCallister, Donna & Lewis, Katie & Farmer, Michael, 2025. "Technical Potential of Agricultural Carbon Sequestration in the Texas High Plains," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360747, Agricultural and Applied Economics Association.
    12. Plastina, Alejandro & Liu, Fangge & Sawadgo, Wendiam, "undated". "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.

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