Economics of Cover Crop Alternatives, SARE Producer Grant

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Presentation transcript:

Economics of Cover Crop Alternatives, SARE Producer Grant Josh Roe

Background Many benefits of cover crops are well established. Little data on economic return. Received a SARE producer grant, (October 1, 2013 start date) to study the economics of grazing, haying and “leaving” cover crops.

Background Chose a location on the farm with good access to water and pens for grazing. Field has been in continuous no-till for approximately 15 years, alfalfa, corn, soybeans, and wheat. Slight variation in the field, more sandy soil to the east.

Design 61 acres planted in three plots: A plot each: for: Grazing Haying Leaving

Design Continued In the plots for leaving alone and grazing the mix is (pounds/acre): Oats (30 pounds) Spring Field Peas (20 pounds) Radish, (3 pounds) Turnips, (2 pounds) Sorghum, (1 pound)

Design Continued Same mix minus the radish and turnips in hayed plot. Planted into wheat stubble on August 6. Received 8 inches of rain within two weeks.

Cover Crop Establishment Costs Leaving Alone Cover Crop Establishment Costs   Per Acre Total Additional Chemical Application (glyphosate) $15.59 $951.00 Drilling $17.48 $1,066.00 Seed $33.79 $2,061.00 $66.85 $4,078.00

Hayed Portion Swathed October 14th 38 bales averaging 1,750 pounds

Hayed Treatment Summary Yield (Tons/Acre) 1.59 "Income" Per Ton $90.00 Cost Per Ton $73.40 Net Income/Ton $16.66

Net Income/Acre Given Price Price/Ton Net Income/Acre $100 $42.79 $90 $26.89 $80 $10.99 $73.09 $0.00 $70 -$4.91 $60 -$20.81 $50 -$36.71 19% Decrease in Price

Net Income/ Acre Given Yield Tons/Acre Net Income/Acre 1.70 $36.79 1.59 $26.89 1.50 $18.79 1.40 $9.79 1.30 $0.79 1.29 $0.00 1.20 -$8.21 1.10 -$17.21 1.00 -$26.21 19% Decrease in Yield

Grazing Portion Start grazing on October 19th Package one: 58 head of 858 pound steers for 26 days Package two: 58 head of 780 pound steers for 60 days Grazing terminated January 17th Supplemented with 7 pounds corn gluten pellets per day, forage (during wet conditions), and mineral

Grazing Summary Head 58 Days of Grazing 86 Average Daily Gain 2.13 Pounds of Gain Per Head 183.18

Gain Results Total Cost $7,190.56 Cost Per Head $123.98 Cost Per Pound of Gain $0.68

Caution! “Optimal” rainfall (for NC Kansas). High cattle prices.

Lessons Learned Received 9” rain on May 5, 2015, significant gully erosion, but what would have happened without cover crops? Surprisingly little regrowth after haying. No corn yield impact, but again, adequate rainfall in 2015. Lots of “activity” compared to farm across the road!