Assessing the economic and environmental benefits adusumilli
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71st SWCS International Annual Conference July 24-27, 2016 Louisville, KY
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Assessing the economic and environmental benefits adusumilli
- 1. Assessing the Economic and Environmental Benefits and Costs of Cover Crops in Cotton Production System in Northwest Louisiana Naveen Adusumilli, Water Economist, LSU Agricultural Center, nadusumilli@agcenter.lsu.edu Daniel Fromme, Corn and Cotton Specialist, LSU Agricultural Center, DFromme@agcenter.lsu.edu 71st SWCS International Annual Conference July 24-27, 2016. Louisville, KY
- 2. The Tool… • Cover crop economics tool, an excel spreadsheet based economic assessment tool (NRCS) Cost categories Benefit categories • Cover crop seed • Nutrient credits • Planting • Chemical inputs reduction • Termination • Yield increase • Management • Reduced erosion • Long term soil fertility improvement • Long term improved water storage and infiltration capacity of soils • Net Present Value is used to estimate long-term profitability
- 3. Cover Crop data Study title Year Study duration Location Soil type The long term effects of winter cover crops on cotton production in Northwest Louisiana 1991 1973-1988 Bossier City, LA Sandy Loam Tillage and cover crops affect cotton growth and yield and soil organic matter 1997 1987-1996 Winnsboro, LA Silt loam Effects of tillage systems and winter cover crops on yield and maturity of cotton on a loess soil in Northeast Louisiana 1993 1987-1992 Winnsboro, LA Silt Loam Cotton yield and growth responses to tillage and cover crops on sharkey clay 1993 1989-1992 St. Joseph, LA Sharkey clay
- 4. Erosion reduction calculation! • Value of soil productivity for the Delta states (Louisiana, Arkansas, and Mississippi) as $0.43/ton, estimated in 1990 dollars, which is $0.71/ton in 2015 dollars • Value of reduced costs of removing sediments is $0.12/ton in 2007 dollars, which is $0.14/ton in 2015 dollars • Annual soil loss per acre per year in Louisiana, which is 2.32 tons/acre/year Hansen L, Ribaudo M (2008) Economic measures of soil conservation benefits. TB-1922. Economic Research Service, USDA.
- 5. No Till vs Conventional Till Study duration Location Soil type Cover crop(s) evaluated Costs of planting and terminating cover crops, $/acre Benefits, $/acre Short-term Long-term Total Net 1987- 1996 Winnsboro , LA Silt loam Hairy vetch No Till $62 $52 $38 $90 $28 C-Till $84 $14 $32 $46 -$38 1987- 1992 Winnsboro , LA Silt Loam Hairy vetch No Till $65 $61 $32 $93 $28 C-Till $85 $41 $40 $81 -$4
- 6. Study duration Location Soil type Cover crop(s) evaluated Costs of planting and terminating cover crops, $/acre Benefits,$/acre Short-ter m Long-term Total Net 1989- 1992 St. Joseph, LA Sharkey clay Hairy vetch No-Till $70 $48 $12 $60 -$10 C-Till $83 $123 $11 $135 $52 1973- 1988 Bossier City, LA Sandy Loam Hairy vetch No-Till C-Till $120 $139 $30 $169 $49 No Till vs Conventional Till
- 7. The Tool… • Cover crop economics tool, an excel spreadsheet based economic assessment tool (NRCS) Cost categories Benefit categories • Cover crop seed • Nutrient credits • Planting • Chemical inputs reduction • Termination • Yield increase • Management • Reduced erosion • Long term soil fertility improvement • Long term improved water storage and infiltration capacity of soils • Net Present Value is used to estimate long-term profitability
- 8. What’s next!!! • A choice to have tillage system benefit accounted • Do these benefits vary by soil type – Could Be!! • Moisture retention benefit premium by soil type, tillage system, and cover crop • Carbon benefit premium by cover crop, tillage system
- 9. What can change!!! • Unified message is missing!! • In face of climate challenges a cost-share structure that recognizes agronomic and environmental benefits • Currently, the national program relies on covering production related costs. In most cases, that incentive amounts to $70 per acre. • A recent change has increased the period of participation for farmers from three years to five years. • Although such improvements can be useful, a comprehensive approach in developing incentive payments accounting for the on- site and off-site benefits is needed.