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Aaron Ristow, M.S. – AFT Author & NY Stewardship Manager
Michelle Perez, PhD – AFT Project Leader & Water Director
Florence Swartz – Consultant, Retired NRCS NY Economist
NACD ANNUAL MEETING
FEBRUARY 11, 2020
Soil Health Case Studies:
Quantifying Economic,
Water Quality, & Climate Outcomes
Outline
• Why quantify outcomes?
• SH CIG Project Overview
• Goals
• Team
• Methods
• Results
Why quantify soil health outcomes?
 Evidence that no-till/strip-till, cover crops,
nutrient management improve water
quality & soil health
 Not much information about economic
benefits linked with better soil health
 The agricultural community (farmers,
retailers, landlords, bankers, etc.) want to
know the “bottom line”
PROJECT OVERVIEW
Project Goal
Drive adoption of soil health practices by:
 Quantifying the economic & environmental
outcomes associated with these management
changes
 Increasing awareness
 Developing a persuasive education tool to help
convince farmers to adopt these practices on
owned and rented land
Meet the Team
Michelle Perez
Project Leader
Water Initiative Director
Florence Swartz
Project Economist
Retired NRCS NY Economist
Meet the AFT Authors
Aaron Ristow
NY Stewardship Mgr
Emily Bruner, PhD
Midwest Science Director
Justin Bodell
CA Stewardship Manager
Brian Brandt
Ag Innovations Director, OH
External Reviewers
 NRCS Economists
• Bryon Kirwan, Illinois State Economist
• Lynn Knight, Economist, East Region
• Lakeitha Ruffin, Oregon State Economist
 NRCS Soil Health Specialists
• Kabir Zahangir, West Regional Soil Health
Specialist
• James Hoorman, NE Regional Soil Health
Specialist
•NTT Reviewer
•Mindy Selman, USDA
Office of Ecosystem
Markets
•COMET-Farm Reviewer
•Matthew Stermer, Colorado
State University
METHODS FOR
ECONOMIC ANALYSIS
Economic Methods
 Partial budget analysis:
• Estimates the economic
effect of changes in a
farming operation
• Focuses only on variables
affected by the change
• Compares costs &
benefits “before” & “after”
soil health practice
implementation
 Primary effects evaluated:
1. Machinery
2. Fertilizer
3. Pesticide
4. Yield
5. Erosion repair
6. Learning costs
7. Other
Economic benefits of soil health practices
outweigh the costs of implementation
$
$
METHODS FOR
ENVIRONMENTAL ANALYSIS
Nutrient Tracking Tool – water quality
NTT is a free online tool for estimating N, P and sediment losses from
crop and pasture
COMET-Farm – greenhouse gases
Whole farm and ranch
carbon and GHG
accounting system
8 Soil Health Case Studies
8 Soil Health Case Studies
OVERARCHING FINDINGS
Yield & Income Benefits of Soil Health
Practices Across Six Crop Farms
 Improved Yield:
 1 farm reported no yield change while
 5 reported yield increases
 Range: 2% to 22% for at least one of the
crops grown
 Annual Change in Per Acre Net Income:
 6 farms reported increases
 Average increase: $41/ac/yr
 Range: $22 to $56/ac/yr
 Return on Investment:
 6 farms reported positive ROI
 Average was 151%
 Range was 35% to 343%
Input Benefits & Costs of Soil Health
Practices Across Six Farms
 Changes to Fertilizer Costs:
 1 farm increased costs while
 5 farms reduced costs
 Average savings: $36/ac/yr
 Range: $18 & $66/ac/yr
 Changes to Machinery, Fuel, and
Labor Costs:
 1 farm reported no change while
 5 farms reduced costs
 Average savings: $31/ac/yr
 Range: $20 to $60/ac/yr
Input Benefits & Costs of Soil Health
Practices Across Six Farms
 Pesticide Usage:
(Herbicide, Insecticide, and Fungicide)
 2 farms reported no change while
 4 reported changes
 2 farms increased by an average of
$8/ac/yr; Range: $5 & $11/ac/yr
 2 farms decreased by average of
$17/ac/yr; Range: $15 to $19/ac/yr
 Learning Costs:
 Average: $3.12/ac/yr
 Ranged from $440 to $12,940/yr or
44 cents to $10.35/ac/yr
Environmental Benefits of Soil Health
Practices Across all Six Farms
 Water Quality Improvement:
All 6 row crop farmers observed reduced soil and water runoff
On selected fields, NTT estimated:
 Average reduction in N losses was 61% (range was 23to 72%);
 Average reduction in P losses was 74% (range was 33to 92%); &
 Average reduction in sediment losses was 81% (range was 37to 99%
 Climate Improvement:
On selected fields, COMET-Farm estimated total GHG emissions were
reduced an average of 217% (range was 35 to 560%)
FEATURED FARMER
Jay Swede, NY, diversified crop rotation
 Genesee County Genesee River Watershed;
 Sweet corn, alfalfa, corn silage, grain corn
 Study area: 1,500 / 4,500 acres
 No-till, strip-till, cover crops, & nutrient management
 Cover crops: 450/ac/yr, oats, wheat, radishes or a mix in
sweet corn after alfalfa, and corn silage
NTT results: On a 25-acre field, N, P, & sediment reduced by 40, 92, & 96%
COMET results: Same field, total GHG reduced by 560%, taking 3 cars off road
Annual SH Benefits: $106,079
Annual SH Costs: $23,822
Annual SH PROFITS: $82,257 or $55/ac
(2018 dollars)
343% ROI
Jay Swede, NY, diversified rotation
Jay Swede, NY, diversified rotation
Farmer Uses of the Case Studies
We hope farmers will:
 Read the case studies & try one soil
health practice w/ or w/o help
AFT, 2 ag retailers, NRCS, & SWCD are
at the ready to help
 Say “yes” to a “Predictive
Assessment”
AFT is offering 4 “soil health curious
farmers” the service of running “what if”
scenarios => potential, future economic,
water quality, & climate benefits
Farmer Uses of the Case Studies
We hope farmers will share the
case studies with:
 Existing landowners - To discuss
sharing the risks and rewards of the soil
health investments
 New landowners – To add new fields
 Bankers –To secure additional financing
for the farm expansion
Uses of the Case Studies by the
Conservation Community
We hope:
 Government partners - NRCS,
SWCD, & Extension
 Non-profit
 Private sector - Ag retailers, crop
consultants, cover crop seed
dealers, strip-till equipment
providers, etc.
Use the case studies with their farm
customers to help answer questions
about the costs & benefits of adopting
soil health practices.
Contact Info
Michelle Perez
Water Initiative Director
mperez@farmland.org
Aaron Ristow
NY Stewardship Manager
aristow@farmland.org
Download the case studies at:
farmland.org/soilhealthcasestudies
To sign-up for a training, email:
SHtraining@farmland.org

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American Farmland Trust Soil Health Case Studies

  • 1. Aaron Ristow, M.S. – AFT Author & NY Stewardship Manager Michelle Perez, PhD – AFT Project Leader & Water Director Florence Swartz – Consultant, Retired NRCS NY Economist NACD ANNUAL MEETING FEBRUARY 11, 2020 Soil Health Case Studies: Quantifying Economic, Water Quality, & Climate Outcomes
  • 2. Outline • Why quantify outcomes? • SH CIG Project Overview • Goals • Team • Methods • Results
  • 3. Why quantify soil health outcomes?  Evidence that no-till/strip-till, cover crops, nutrient management improve water quality & soil health  Not much information about economic benefits linked with better soil health  The agricultural community (farmers, retailers, landlords, bankers, etc.) want to know the “bottom line”
  • 5. Project Goal Drive adoption of soil health practices by:  Quantifying the economic & environmental outcomes associated with these management changes  Increasing awareness  Developing a persuasive education tool to help convince farmers to adopt these practices on owned and rented land
  • 6. Meet the Team Michelle Perez Project Leader Water Initiative Director Florence Swartz Project Economist Retired NRCS NY Economist
  • 7. Meet the AFT Authors Aaron Ristow NY Stewardship Mgr Emily Bruner, PhD Midwest Science Director Justin Bodell CA Stewardship Manager Brian Brandt Ag Innovations Director, OH
  • 8. External Reviewers  NRCS Economists • Bryon Kirwan, Illinois State Economist • Lynn Knight, Economist, East Region • Lakeitha Ruffin, Oregon State Economist  NRCS Soil Health Specialists • Kabir Zahangir, West Regional Soil Health Specialist • James Hoorman, NE Regional Soil Health Specialist •NTT Reviewer •Mindy Selman, USDA Office of Ecosystem Markets •COMET-Farm Reviewer •Matthew Stermer, Colorado State University
  • 10. Economic Methods  Partial budget analysis: • Estimates the economic effect of changes in a farming operation • Focuses only on variables affected by the change • Compares costs & benefits “before” & “after” soil health practice implementation  Primary effects evaluated: 1. Machinery 2. Fertilizer 3. Pesticide 4. Yield 5. Erosion repair 6. Learning costs 7. Other
  • 11. Economic benefits of soil health practices outweigh the costs of implementation $ $
  • 13. Nutrient Tracking Tool – water quality NTT is a free online tool for estimating N, P and sediment losses from crop and pasture
  • 14. COMET-Farm – greenhouse gases Whole farm and ranch carbon and GHG accounting system
  • 15. 8 Soil Health Case Studies
  • 16. 8 Soil Health Case Studies
  • 18. Yield & Income Benefits of Soil Health Practices Across Six Crop Farms  Improved Yield:  1 farm reported no yield change while  5 reported yield increases  Range: 2% to 22% for at least one of the crops grown  Annual Change in Per Acre Net Income:  6 farms reported increases  Average increase: $41/ac/yr  Range: $22 to $56/ac/yr  Return on Investment:  6 farms reported positive ROI  Average was 151%  Range was 35% to 343%
  • 19. Input Benefits & Costs of Soil Health Practices Across Six Farms  Changes to Fertilizer Costs:  1 farm increased costs while  5 farms reduced costs  Average savings: $36/ac/yr  Range: $18 & $66/ac/yr  Changes to Machinery, Fuel, and Labor Costs:  1 farm reported no change while  5 farms reduced costs  Average savings: $31/ac/yr  Range: $20 to $60/ac/yr
  • 20. Input Benefits & Costs of Soil Health Practices Across Six Farms  Pesticide Usage: (Herbicide, Insecticide, and Fungicide)  2 farms reported no change while  4 reported changes  2 farms increased by an average of $8/ac/yr; Range: $5 & $11/ac/yr  2 farms decreased by average of $17/ac/yr; Range: $15 to $19/ac/yr  Learning Costs:  Average: $3.12/ac/yr  Ranged from $440 to $12,940/yr or 44 cents to $10.35/ac/yr
  • 21. Environmental Benefits of Soil Health Practices Across all Six Farms  Water Quality Improvement: All 6 row crop farmers observed reduced soil and water runoff On selected fields, NTT estimated:  Average reduction in N losses was 61% (range was 23to 72%);  Average reduction in P losses was 74% (range was 33to 92%); &  Average reduction in sediment losses was 81% (range was 37to 99%  Climate Improvement: On selected fields, COMET-Farm estimated total GHG emissions were reduced an average of 217% (range was 35 to 560%)
  • 23. Jay Swede, NY, diversified crop rotation  Genesee County Genesee River Watershed;  Sweet corn, alfalfa, corn silage, grain corn  Study area: 1,500 / 4,500 acres  No-till, strip-till, cover crops, & nutrient management  Cover crops: 450/ac/yr, oats, wheat, radishes or a mix in sweet corn after alfalfa, and corn silage NTT results: On a 25-acre field, N, P, & sediment reduced by 40, 92, & 96% COMET results: Same field, total GHG reduced by 560%, taking 3 cars off road Annual SH Benefits: $106,079 Annual SH Costs: $23,822 Annual SH PROFITS: $82,257 or $55/ac (2018 dollars) 343% ROI
  • 24. Jay Swede, NY, diversified rotation
  • 25. Jay Swede, NY, diversified rotation
  • 26. Farmer Uses of the Case Studies We hope farmers will:  Read the case studies & try one soil health practice w/ or w/o help AFT, 2 ag retailers, NRCS, & SWCD are at the ready to help  Say “yes” to a “Predictive Assessment” AFT is offering 4 “soil health curious farmers” the service of running “what if” scenarios => potential, future economic, water quality, & climate benefits
  • 27. Farmer Uses of the Case Studies We hope farmers will share the case studies with:  Existing landowners - To discuss sharing the risks and rewards of the soil health investments  New landowners – To add new fields  Bankers –To secure additional financing for the farm expansion
  • 28. Uses of the Case Studies by the Conservation Community We hope:  Government partners - NRCS, SWCD, & Extension  Non-profit  Private sector - Ag retailers, crop consultants, cover crop seed dealers, strip-till equipment providers, etc. Use the case studies with their farm customers to help answer questions about the costs & benefits of adopting soil health practices.
  • 29. Contact Info Michelle Perez Water Initiative Director mperez@farmland.org Aaron Ristow NY Stewardship Manager aristow@farmland.org Download the case studies at: farmland.org/soilhealthcasestudies To sign-up for a training, email: SHtraining@farmland.org

Editor's Notes

  1. SH Photo from Dee Ann Littlefield National Conservation Innovation Grant examining the economic, environmental benefits of soil health practice implementation on farms across the country.  I’ll start  with an overview of why the project is needed and the overarching goals, spend a little time introducing the team and all the work that went on behind the scenes to make these case studies happen, then wrap up with summarizing the results for three of the four case studies that have been published so far (as these three are the most relevant to the Midwest Region) Then I will ask a few questions of the audience myself and open it up to questions from the group
  2. This proposed project incorporates all four factors as core elements to our innovative approach which combines use of quantification tools to generate and disseminate case studies that showcase quantified outcomes with an effort to improve relationships between landowners and farmers and a focus on providing effective technical and financial assistance to aid SHMS adoption Define soil health for this audience the continued capacity of soil to function as a vital living ecosystem that sustains plants, animals, and humans. - NRCS definition
  3. Niemeyer – corn cover crop
  4. Source: https://www.chesapeakeprogress.com/clean-water/watershed-implementation-plans
  5. Second round including university economists – Remember to give a shout out to Gary for his review of the Ifft Case Study
  6. Photo Credit - Edwin Remsberg and USDA-SARE. Collected by Brennan.
  7. Photo Credit - Edwin Remsberg and USDA-SARE. Collected by Brennan.
  8. Funding from USDA's Office of Environmental Markets 
  9. CA – Almond grower; NM, CC, Mulch, Compost IL – Corn/Soy; CC, Strip-till, NT, NM; Corn/Soy; Cover crops; NM OH – Corn/Soy; NT, CC, NM; Corn/Soy; Strip-till, CC, NM NY – Alfalfa, Corn Silage or Grain, Strip-till, CC, N.M.; Grain corn, Soy and Wheat; NT,CC, NM
  10. Photo Credit - Edwin Remsberg and USDA-SARE. Collected by Brennan.
  11. Niemeyer (OH) spends time learning for his cover crop consulting business too (so we took ½ his learning costs for the farm operation). Make the wording more consistence
  12. Photo Credit - Edwin Remsberg and USDA-SARE. Collected by Brennan.
  13. Source: https://www.chesapeakeprogress.com/clean-water/watershed-implementation-plans
  14. Source: https://www.chesapeakeprogress.com/clean-water/watershed-implementation-plans
  15. Use a tool box. Focus on how this is a toolbox for them to use