71st SWCS International Annual Conference July 24-27, 2016 Louisville, KY

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.

10. Thankyou!!
Naveen Adusumilli
nadusumilli@agcenter.lsu.edu
318‐884‐0514
@nadusumilli