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Evaluating Benefits and Costs of Cover Crops in Cotton Production System in Northwest Louisiana

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  • Adusumilli, Naveen
  • Fromme, Daniel

Abstract

Cover crop adoption by producers as part of a production cycle depends on their objectives regrading time management, cost vs benefits, and environmental obligations. A myriad of studies that examined the economics of cover crops found them to be often idiosyncratic, i.e., results depend on the region, weather patterns, soil type, and management practices. The studies determined that lack of long-term economic outlook for the incorporation of cover crops as one of the factors for their minimal adoption in many parts of the country. Thus, we aim to assess the economic impact of long-term adoption of cover crops as part of a production cycle. Partial budgeting tool, CoverCropEconomics, is used to generate the overall costs and benefits. The data on agronomic variables, i.e., yield, organic matter, applied nitrogen, soil microbial counts, and among others are obtained from a 30-year cover crop research conducted in Northwest Louisiana. The research reported a significant increase in yield for crops planted following cover crops. Additionally, research shows improvements in soil nitrogen and soil organic matter suggesting added profits to the farmer. Accounting for those economic and agronomic variables, overall long term net benefits of incorporating cover crops amount to 1,354 per acre, with majority of the benefits contribution through yield increase of cash crop. The results can be useful for conservation agencies to evaluate their current incentive payments toward cover crop adoption.

Suggested Citation

  • Adusumilli, Naveen & Fromme, Daniel, 2016. "Evaluating Benefits and Costs of Cover Crops in Cotton Production System in Northwest Louisiana," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230024, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:230024
    DOI: 10.22004/ag.econ.230024
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    References listed on IDEAS

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    1. Lazarus, Sheryl S. & White, Gerald B., 1984. "Economic Impact Of Introducing Rotations On Long Island Potato Farms," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 13(2), pages 1-8, October.
    2. Labarta, Ricardo A. & Swinton, Scott M. & Black, J. Roy & Snapp, Siglinde & Leep, Richard, 2002. "Economic Analysis Approaches To Potato-Based Integrated Crop Systems: Issues And Method," Staff Paper Series 11677, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. Wang, Tong & Xu, Zheng & Kolady, Deepthi & Ulrich-Schad, Jessica D. & Clay, David, 2020. "Cover-Crop Usage in South Dakota: Farmer Perceived Profitability and Future Adoption Decisions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(2), August.
    2. C., Apar G. & Ghimire, Rajan & Blayney, Don & Acharya, Ram N., 2018. "Feasibility of Using Cover Crops to Enhance Soil Organic Matter and Crop Yield in New Mexico," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266735, Southern Agricultural Economics Association.

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    Keywords

    Production Economics; Resource /Energy Economics and Policy;

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