Do Cover Crops Pay? Net Returns to Corn/Soybean Farmers in Iowa

Cover crops can induce revenue and expense changes in a farmer’s production system in several ways. Revenue can be affected by savings in livestock feed costs due to cover crop grazing, changes in cash crop production values following cover crop plantings, and cost-share payments that can partially offset the cost of cover crops. Expense changes due to cover crops can be broken down into planting, termination, and other costs. Planting costs include seed purchases, differential planting method costs, and labor. Termination costs typically include herbicide purchases, spraying, and labor. Some of the other costs that might change when using cover crops include costs to repair soil erosion, fertilizer and insecticide costs, cash crop seed costs, and changes in cash rent due to cover crop use.