Ohio State University
farmdoc daily (11):106
farmdoc daily (11):106, Department of Agricultural and Consumer Economics, University of Illinois at
Urbana-Champaign, July 13, 2021. Permalink
Cover crops reduce nitrogen effluent in water and increase soil carbon over time, thereby providing environmental benefits, which may also translate into longer-term economic benefits. However, the costs associated with cover crops in the initial years usually exceed benefits accruing directly to farmers and landowners. Over time, benefits may increase and exceed costs. Land tenure and rental arrangements likely will impact adoption, with adoption more likely on owned farmland than rented farmland. Public policy that encourages cover crop adoption should consider rental arrangements’ impact on incentives. Similar incentive issues exist for other conservation practices, as well as carbon credit markets.

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