Breakout Session Slides Cultivating Resiliency: Linking Soil Health to Profitability – SHI Soil Health Educator Dr. Katherine East, SHI Soil Scientist Kade Flynn, and NACD Soil Health Champion Don Elsbernd discuss how the Soil Health Institute (SHI), working alongside partners including the National Association of Conservation Districts (NACD), has assessed the economics of soil health management systems (SHMS) on a national scale. In this session, SHI will showcase the economic benefits of adopting SHMS and present innovative methods to reduce production costs and increase net farm income. Drawing from the experiences of over 160 U.S. farms, they will illustrate how SHMS can effectively mitigate operational risks across diverse climates and production systems. Tuesday, February 13 3:30 - 4:10 p.m.

1. CULTIVATING RESILIENCY: LINKING SOIL HEALTH
TO PROFITABILITY
KADE FLYNN, SOIL SCIENTIST
KATHERINE EAST, SOIL HEALTH EDUCATOR
FEB 13, 2024
1
Enriching Soil, Enhancing Life

2. Economics of Soil Health Systems
2
Archie Flanders,
Ph.D.
Agricultural
Economist
Emily Ball, M.S.
Soil Health
Educator
Jessica Kelton, M.S.
Soil Health Educator
Cristine Morgan,
Ph.D.
Chief Scientific
Officer
Wayne Honeycutt,
Ph.D.
President and CEO
Emily Bruner, Ph.D.
Chief of Staff
Dianna Bagnall, Ph.D.
Research Soil Scientist
Katherine East, Ph.D.
Soil Health Educator
& Modelling
Specialist
Mara Cloutier, Ph.D.
Project Manager
Ann Marie Calabro,
B.A.
Soil Health Educator
& Project Manager
Misty Miles, M.S.
Project Manager
Cameron Ogilvie,
M.S.
Soil Health Educator

3. 3
The Soil Health Institute
The Soil Health Institute
(SHI) is a global
nonprofit with a mission
to safeguard and
enhance the vitality and
productivity of soil
through scientific
research and
advancement.

4. 4
To provide farmers with the
economic information they need
when deciding whether to adopt
soil health management systems
(SHMS).
Partial budget analysis compares costs and benefits before and after SHMS adoption.
Objective

5. 5
• Interviewed over 165 farmers+ who have adopted SHMS for at least 5
years to obtain their production information.
• Calculated partial budgets to compare benefits and costs before and
after SHMS adoption
• Only differences between management systems are included in partial
budget analysis. *
• Calculated revenue by using a standardized set of long-term average
prices.
+Results from 150 of these interviews have been released to date. *USDA payments were not included.
Approach

6. Economic Projects Overview
6
1. 100 farms surveyed across 9 MW
states in corn/soy production
systems

7. Economic Projects Overview
7
1. 100 farms surveyed across 9
MW states in corn/soy
production systems
2. 21 farms surveyed across 5
states in cotton production
systems

8. Economic Projects Overview
8
1. 100 farms surveyed across 9
MW states in corn/soy
production systems
2. 21 farms surveyed across 5
states in cotton production
systems
3. 30 farms assessed across 20
states representing a diverse
range of cropping rotations

9. 9
Soil Health Institute (SHI) Economic Resources
Regional and State-Level Reports and Webinars:
Corn and Soy
100 farms surveyed
across 9 MW states

10. Characteristics of the 100 Farms
10
State
No.
Farms
Corn Soybean
Winter/
Spring
Wheat
Double1
Crop
Wheat
Cotton Other2
Avg.
Crop
Acres
Illinois 11 459 459 16 18 0 0 934
Indiana 16 1628 1630 110 6 0 105 3,473
Iowa 10 1202 923 0 0 0 0 2,125
Michigan 10 366 494 184 0 0 234 1,278
Minnesota 10 959 703 20 0 0 248 1,930
Nebraska 12 840 557 41 8 0 47 1,485
Ohio 11 426 473 87 14 0 108 1,095
S. Dakota 10 776 746 100 0 0 68 1,690
Tennessee 10 1,043 1,083 0 548 655 43 2,824
Total 100 89,324 82,499 6,435 6,028 6,548 9,098 194,003

11. Adoption of SHMS by 100 Farmers
74
26
71
88
12
79
83
17
58
89
11
83
54
46 48
95
5
47
87
13
54
95
5
22
100
0
19
85
15
53
37 35
5
0
20
40
60
80
100
120
No-till Reduced-till Cover crops
Percent
of
Planted
Acres
Illinois Indiana Iowa Michigan Minnesota Nebraska Ohio South Dakota Tennessee Nine-state U.S.
11
USDA-NASS (2017)

12. Partial Budget for 100 Farms Adopting SHMS
12
CORN SOYBEAN
BENEFITS COSTS BENEFITS COSTS
CATEGORY, $/ac. Reduced Expense Additional Expense Reduced Expense Additional Expense
Seed 4.08 12.62 2.79 10.02
Fertilizer & Amendments 22.36 1.14 9.20 0.25
Pesticides 9.22 7.90 10.00 8.07
Fuel & Electricity 3.91 1.90 4.33 1.80
Labor & Services 11.13 8.24 10.94 8.24
Post-harvest Expenses 0.18 3.48 0.00 0.93
Equipment Ownership 16.18 11.08 18.41 10.72
EXPENSE CHANGE, $/ac. 67.06 46.36 55.67 40.03
Additional Revenue Reduced Revenue Additional Revenue Reduced Revenue
Yield, bu./ac. 7.73 0.39 2.91 0.00
Price Received, $/bu. 4.21 4.20 10.05 10.00
REVENUE CHANGE, $/ac. 32.54 1.64 29.25 0.00
Total Benefits Total Costs Total Benefits Total Costs
TOTAL CHANGE, $/ac. 99.60 48.00 84.92 40.03
CHANGE IN NET FARM INCOME, $/ac. 51.60 44.89

13. Corn & Soybean Net Farm Income Increases
due to SHMS for 100 Farms in Nine States
13
39
38
63
47
64
37
25
38
32
38
68
49
65
37
54
51
55
69
52
45
0
10
20
30
40
50
60
70
80
Corn Soybean
$/Acre
Illinois Indiana Iowa Michigan Minnesota Nebraska Ohio South Dakota Tennessee Average

14. Additional Benefits Reported by 100 Farmers
Benefit % Responding Yes
Increased Yield 67
Reduced Fertilizer Input 83
Increased Crop Resilience 97
Increased Access to Field 93
Improved Loan, Land, Insurance Terms 41
Improved Water Quality 100
Protects License to Operate 98
Increased Soil Organic Matter 54
14

15. Key Findings: Corn and Soy
15
Corn
• Averaged 855 acres, used
conservation tillage only on 37
farms, conservation tillage and
cover crops on 63 farms
• SHMS increased net income by
an average of $52/acre in corn
Soybean
• Averaged 855 acres,
used conservation
tillage only on 36 farms,
conservation tillage and cover
crops on 64 farms
• SHMS increased net income
by an average of $45/acre in
soybean
Adding cover crops to conservation tillage in corn and
soy increased soil health without decreasing net income

16. 16
Soil Health Institute (SHI) Economic Resources
Regional and State-Level Reports and Webinars:
Cotton
21 farms surveyed
across 5 states

17. Texas
• Averaged 4,752 acres, used no-till on
63%, reduced tillage on 37%, and cover
crops on 84% of acres
• All farmers reported increased cotton
yield that averaged 124 lb./acre
• It cost an average of $63/acre less to
grow cotton using a SHMS
• SHMS increased net income by an
average of $157/acre for cotton
Georgia
• 8 farmers averaged 1,439 acres, used
reduced tillage on 68%, and cover crops on
64% of acres
• No farmers reported a decrease in cotton
yield and 3/8 farmers reported increased
cotton yield that averaged 72 lb./acre
• It cost an average of $48/acre less to grow
cotton using a SHMS
• SHMS increased net income by an average
of 97.23/acre for cotton
Key Findings: Cotton
17

18. Texas
• Six farmers used no-till and one used
strip-till. Five farmers reduced trips with
sand fighters.
• Average reduction in emissions of 0.43
metric tons of CO2E per cotton acre per
year
• Average of 3,119 cotton acres
• Together, these 8 farmers removed the
equivalent of 225 cars per year from the
road.
Georgia
• All surveyed farmers used strip-till.
• Average reduction in emissions of 0.02
metric tons of CO2E per cotton acre per year
• Average of 715 cotton acres.
• Together, these 8 farmers removed the
equivalent of 48 cars per year from the road
GHG benefits: Cotton
18
SHMS reduced greenhouse gas (GHG) emissions from cotton production through:
• Reduced use of diesel fuel
• Decreased use of fertilizers and amendments

19. 30 farms assessed across 20 U.S.
states representing a diverse range
of cropping rotations
19
Individual Farm Case Studies and Videos
Soil Health Institute (SHI) Economic Resources

20. Key Findings: 30 Farms
20
• Across 29 farms, SHMS increased net farm
income by an average of $65/acre.
• 42% of farms growing corn reported a yield
increase due to SHMS, and 32% of farms
growing soybean reported a yield increase due
to adopting a SHMS. Increased crop yield was
reported for 35% of other crops using a SHMS.
• Cover crop seed costs averaged $21/acre for
corn and $16/acre for soybean. Cover crop
seed costs averaged $25/acre when used with
other crops.
• Four farms grazed cover crops, allowing them
to increase revenue by an average of $26/acre.

21. Key Findings: 30 Farms
21
https://www.youtube.com/watch?v=ZkavsEQpgmc

22. Find these resources online at soilhealthinstitute.org
22
Regional and State-
Level Reports and
Webinars: Cotton
Regional and State-
Level Reports and
Webinars: Corn/Soy
Individual Farm Case
Studies and Videos