Cover Crop Decision Making Tool

by Michael Langemeier

This spreadsheet can be used to examine whether it is beneficial to use a cover crop.  Information needed to examine this decision includes the following: change in crop yields, crop price, cover crop seed cost, planting cost for cover crops, cover crop termination cost, fertilizer savings, and other costs changes such as a change in herbicide costs, or savings associated with soil health.

The addition of cover crops to a farm’s agricultural system can have significant impacts on the bottom line of the business. Despite strong agronomic evidence of the positive impact cover crops have on soil health, farmers are often hesitant to adopt cover crops. Learn more on Cover Crops And Farm Profitability In Central Indiana in our companion research article.

TAGS:

TEAM LINKS:

RELATED RESOURCES

Thinking Like A CFO for Your Farm Operation

February 10, 2023

A farm manager who thinks like a CFO can leverage balance sheet and cash flow information to develop accrual income, sources and uses of funds, and owner’s equity statements which can be used to ensure the farm is well positioned for the future. Join Purdue ag economists Michael Langemeier and James Mintert for an episode discussing why you should think like a CFO for your farm operation.

READ MORE

Cattle Finishing Net Returns Prospects for 2023

January 5, 2023

This article discussed recent trends in feeding cost of gain, the feeder to fed cattle price ratio, breakeven prices, and cattle finishing net returns. Average cattle finishing losses in 2022 were estimated to be approximately $70 per head.

READ MORE

U.S. Farm Sector Capital Expenditures

December 6, 2022

In response to relatively strong net farm income during the last three years, real capital expenditures have increased approximately 32 percent. Whether capital expenditures continue to increase depends on future net farm income prospects as well as factors such as interest rates, machinery inventories, and machinery and building prices.

READ MORE

UPCOMING EVENTS

Monthly Corn & Soybean Outlook Update

Webinar each month following USDA’s release of the updated World Agricultural Supply and Demand Estimates (WASDE). Catch the next monthly update on April 1 for the corn and soybean outlook following release of USDA’s Prospective Plantings reports. Registration is free.

Read More