Cover Crop Profitability

Overview

Determining the profitability of your cover crop may not be as crystal clear as calculating your net profits. Some benefits start small and increase each year the practice is continued. Cover crops offer benefits across farm management, so consider the following improvements outlined by Dr. Rob Myers in How to Measure Cover Crop Success when evaluating the success of your cover crop:

  • Evaluate Soil Health: Cover crops add organic matter and fertilization while improving soil structure.
  • Determine Weed Suppression: Cover crops suppress weeds by competing for space and light.
  • Examine Erosion: Cover crops cover and hold the soil to prevent erosion.
  • Evaluate Nutrients: Soil sampling can predict what nutrients are being added and what is needed.
  • Determine Yield Impact: First year impacts are relatively low, after 3 years, significant impacts are measurable.

Many producers find increasing success and benefits with each year that they use cover crops. Cover crops help to reduce inputs while increasing yield, and have even better benefits when incorporated in a livestock system. Choosing the right cover crop mix is determinate on your farm management goals, and our skilled technicians are available to help you select the right mix to meet your needs.

Cover Crop Costs & Benefits Calculators

There are several tools available to help determine and calculate cover crop costs and profitability. Each calculator is designed as a downloadable and fillable Microsoft Excel document that will help you calculate the profitability of different cover crops for your practice. The economics simulator is a web-based tool that comes with a detailed user guide.

Iowa Learning Farms created the Cover Crop Cost and Cover Crop Seeding Rate Calculators, Iowa State University Extension and Outreach created the Economics of Cover Crops Costs & Benefits tool, and Iowa Soybean Association created the Cover Crop Economic Simulator. 

The Iowa Agriculture Alliance’s Iowa Cost Share Comparison page outlines helpful Cover Crop cost share program information for farmers to easily access. Their charts compare the services each program has to offer. Visit their webpage to download the charts to use their clickable weblinks to navigate the information with a breeze.

 Shared here is IAWA’s chart showing which incentives stack.

IAWA also provides an Interactive Cost Share Comparison tool that allows producers to add and compare how different incentive stack and to help producers decide which Cost Share Programs to enroll in to get the maximum benefits for their practice.

Maximize Benefits

Cover Crops will pay for themselves best when being used to meet multiple needs. 

From the SARE Technical Bulletin, some ways to gain more profitability out of Cover Crops include:

  • Grazing livestock
  • Preventing herbicide-resistant weeds
  • Increasing soil permeability from compaction
  • Increasing the speed and ease the transition to no-till
  • Controlling soil moisture during deficiency
  • Conserving fertilizer and nutrient costs
  • Applying for cover crop cost share programs
 
Cover Crop Profitability increases with each year of use. Some Cover Crops can also be harvested as cash crops.
 
Find more information and Cover Crop Fact Sheets at the National Resources Conservation Service. You can also see cover crops in action at our Cover Crop Demonstration Plot.

Private and Federal Funding

While the District can help you apply for State cost share funds, there are opportunities for stackable funding through other privately organized cost share programs.

Some private cost share opportunities we are aware of include but are not limited to:

There are Federal Funding opportunities also available for cover crops that may not be stackable with State Cost Share, but may be an attractive alternative:

Video Playlist

Playlist

4 Videos

Research on Economics & Profitability

The Economic Value of Cover Crops

Provided by Iowa Learning Farms, the Economic Value of Cover Crops Report shares a study estimating the value of retained nutrients and land value from the use of cover crops. See the full report or download the infographic using the following link: Learn More!

Provided by Sustainable Agriculture Research and Education (SARE), the Managing Cover Crops Profitability 3rd Edition book (2007) explores how and why cover crops work and provides information to build cover crops into any farming operation. This title is available for free as a PDF, Epub, or Mobi on their website. Print copies can also be purchased. See the full book using the following link: Learn More!

Provided by the Penn State Extension Office, the Economics of Cover Crops article dives into six major economic benefits Cover Crops provide to different farm practices. See the full article using the following link: Learn More!

Provided by Practical Farmers of Iowa, this article highlights economic advantages and profitability gains that can be made by grazing livestock on Cover Crops. See what economic benefits farmer Ben Albright reaped by sowing a test field adjacent to his feedlot using the following link: Learn More!

Provided by ISU Extension and Outreach, the How do Cover Crops Affect Whole Farm Profitability PowerPoint Presentation provides an overview of a profitability study that included over 50 farmer’s experiences. See detailed explanations of profitability information using the following link: Learn More!

Provided by the ISU Department of Economics, this article evaluates the change in net returns from implementing Cover Crops into corn and soy beans. See the details using the following link: Learn More!

Provided by Cambridge University Press, this study calculates the annual net returns to Cover Crop use for farmers in the Midwest. This publication can be downloaded for free on their website, see the full study using the following link: Learn More!

Cover Crop Resources

Fall 2023 Cover Crop Insights

A Report from Polk Soil and Water Conservation District As the planting season begins on the fields of Polk County, Iowa, the farmers have been reflecting on their fall Cover

Read More »

Peer Group Farmers

Peer group farmers are a valuable resource for anyone looking to start conservation projects or adopt regenerative farming practices. These experienced farmers have already implemented various conservation strategies on their own farms and can offer practical insights, advice, and support. By joining a peer group, you gain access to a network of individuals who understand the challenges and rewards of sustainable farming. They can provide guidance on best practices, share lessons learned, and even offer hands-on assistance. Engaging with peer group farmers can significantly ease the transition to new farming methods, helping you to avoid common pitfalls and achieve success more quickly. Their collective experience and willingness to share knowledge make them an indispensable part of the farming community.

The goal of Polk SWCD is to protect water quality and conserve soil resources in Iowa.

To provide leadership that helps people improve, conserve, and sustain our natural resources while educating them on the importance and practicality of maintaining our environment and quality of life.

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