Supply of Cover Crops under Alternative Conservation Contract Features

Using cover crops within row-crop agricultural systems offers many potential ecosystem service benefits including potential water quality and soil health benefits. While cover crops are supported under many payment for ecosystem service programs exist in the U.S., adoption rates remain low—according to the U.S. Department of Agriculture only 4.7 percent of total cropland was planted with cover crops in 2022. Thus, there is policy interest in how conservation contracts can be designed to improve the uptake of cover cropping. We report preliminary estimates of the supply of cover cropping under alternative conservation contracts that vary features such as contract length, frequency, stringency, payment provider (e.g., government, NGO, private sector), and payment amounts. The data come from an OMB-approved survey of Midwestern farmers using a combined push-to-web and paper survey that achieved response rate of 28%. The sample uses USDA Farm Service Agency records to identify a stratified random draw of corn and soy farmers with strata based on acreages. A choice experiment that varies contract features is used to estimate farmer adoption of conservation contracts for cover cropping. Preliminary results suggest features that payment levels, increased contract flexibility, and reduced transaction costs can significantly enhance enrollment.