2016 Cost Sheet for Cereal Rye Cover Crop

IA NRS Cost Tool Overview
Tyndall & Bowman, 2016
Draft
Land Use Practices
Cover Crops (Cereal Rye example): Cover crops are plants that are used to protect soils during
the period between the harvest and establishment of crops such as corn and soybeans (table 1). They have
the capacity to scavenge/ retain nitrates, reduce erosion in the field and reduce the movement of
phosphorus. Based on the science summary produced by
the Iowa Nutrient Reduction Strategy (Lawrence 2013),
cereal rye cover crops result in an average 31% reduction
in nitrate (N) field loss and about 29% reduction in
phosphate (P) loss (though it should be noted that the
standard deviations are quite high indicating highly
variable results). There are many other cover crop types
suitable for different regions in Iowa; cover crop choice
is a matter of field level land use goals and regional crop
suitability. The Midwest Cover Crops Council has
developed and made available online, a comprehensive
field guide and species selection decision tool; this can be
found at: http://www.mccc.msu.edu/index.htm.
Cereal Rye. Photo: Iowa Learning Farm
Table 1. General practice characteristics of cereal rye cover crops as used in Iowa and basic cost
parameters. This practice can be cost shared with the NRCS via the EQIP cover crop program.
Best
Management
Practice
Cover Crops
(NRCS Practice
Code 340)
Goals of Practice
Reduce erosion from wind and water.
Increase soil organic matter content.
Capture and recycle or redistribute nutrients
(particularly N) in the soil profile.
Suppress Weeds.
Manage soil moisture.
Minimize and reduce soil compaction.
Basic Cost Parameters
Seed costs (usually cereal rye or mix).
Planting (aerial or broadcast).
Termination (herbicide or mechanical).
Opportunity costs from potential losses from
effects on corn or bean yield.
General extra management costs (e.g., walking
fields, adjusting equipment, etc.)
Cost Overview for Cereal Rye Cover Crops:
Depending on the method of seeding (drilling, aerial, broadcast) and cover crop termination (chemical or
mechanical) the total average annual cost ranges from a low of about $57 per acre to a high of about $68
per acre (see table 2 below). The single costliest aspect of using cover crops based on this analysis is the
cost of seed (based on 2016 prices from online Cornbelt region seed dealers); less expensive, local seed
sources may well be available variably by region within the state. Aerial seeding is in general more
expensive than broadcast seeding and herbicide termination is generally more expensive than mechanical
methods. Table 3 below outlines various cost bearing activities generally associated with establishing and
managing cereal rye cover crops in Iowa (note: management activities may vary from farm to farm). For
more information, please see Roley et al. (2016).
IA NRS Cost Tool Overview
Tyndall & Bowman, 2016
Draft
Table 2: Average costs 1 for Cereal Rye Winter Cover Crops in Iowa 2016.
Aerial option total cost
per acre (herbicide
termination)
Broadcast option total
cost per acre
(herbicide
termination)
EQIP2 Aerial option
total cost per acre
(herbicide
termination)
EQIP2 Broadcast
option total cost per
acre (herbicide
termination)
~ $65
~ $63
~ $25
~ $23
Min $42; Max $84
Min $37; Max $80
Min $2; Max $44
Min $0; Max $40
1. Assumes no negative or positive yield effects.
2. 2016 Iowa EQIP Basic Payment Rates Chemical or mechanical kill species—$40.13/Ac;
http://www.nrcs.usda.gov/wps/PA_NRCSConsumption/download?cid=nrcseprd420279&ext=pdf
Important caveat: Please note that the direct and indirect cost of any Best Management Practice can
vary considerably from site to site and are largely contingent on: initial conditions, hydrology, soils, crop,
practice design, management characteristics and experienced opportunity costs (which can be highly
variable). As with all of these types of financial assessments, the costs presented here are simply baseline
numbers and are meant to be informative rather than prescriptive.
References
Iowa Learning Farms and Practical Farmers of Iowa. (2014) Winter Cereal Rye Cover Crop Effect on Cash Crop
Yield. Available at: http://practicalfarmers.org/farmer-knowledge/research-reports/2014/winter-cereal-rye-cover-crop-effectcash-crop-yield/
Lawrence J. 2013. Iowa Strategy to Reduce Nutrient Loss: Nitrogen and Phosphorus Practices. Iowa State
University Extension and Outreach. SP 0435. February 2013.
Plastina, A. and A. Johanns (2016) 2016 Iowa farm custom rate survey. Ag Decision Maker. File A3-10; FM 1698
(Revised, March 2016). Avialable at: https://www.extension.iastate.edu/agdm/crops/pdf/a3-10.pdf
Roley, S., Tank, J., Tyndall, J.C., Witter, J. (2016) How cost-effective are cover crops, wetlands, and two-stage
ditches for nitrogen removal in the Mississippi River Basin? Water Resources & Economics.
This cost information may be cited as:
Tyndall, J., and T. Bowman (2016) Iowa Nutrient Reduction Strategy Best Management Practice cost overview
series: Cover crops. Department of Ecology & Natural Resource management, Iowa State University.
IA NRS Cost Tool Overview
Tyndall & Bowman, 2016
Draft
Table 3. Custom rate costs associated with winter cereal rye cover crop (Secale cereal)1 planted in Iowa; primary cover goal is nitrogen scavenging.
Costs presented in 2016 dollars. Data updated from Roley et al., 2016.
Year
cost
incurred
Range of
costs (units)
Mean
price
(ac)
0
$0.20 $0.40/lbs
$36
120 lbs per acre seeding rate.
There are a number of regional seed companies that feature
seeds for cover crops of all kinds.
0
$0.20 $0.40/lbs
$30
100 lbs per acre seeding rate.
There are a number of regional seed companies that feature
seeds for cover crops of all kinds.
Planting cost
option 1 - aerial
0
$7.50 to
$16.00/ acre
$11.00
Typical aerial Seeding Rate: 83-150 lb./Ac
PLS.
Seeding rate: http://mccc.msu.edu/states/Iowa.html; Cost
information: Plastina and Johanns (2016):
Planting cost
option 2 broadcast
0
$8.00 to
$15.00/acre
$12.25
Typical broadcast Seeding Rate: 69-125
lb./A PLS.
Cost Activities 2
Seed cost Planting option
1 aerial
Seed cost –
Planting option
2 broadcast
Cover
termination herbicide
Cover
termination disking
0
Variable
0
$8.00 to
$25.50/ acre
Notes
Data Sources
Seeding rate: http://mccc.msu.edu/states/Iowa.html; Cost
information: Plastina and Johanns (2016): Seed drilling is also an
option and costs on average ~ $17.00 per acre.
$18.43
Glyphosate: $18.70/ gal.; AMS: $0.35/lb.;
Nonionic surfactant: $26/gal; Application:
$7.23/acre = 64 oz. glyphosate + 2.5 lb.
AMS + 4.8 oz. NIS = Total: $18.43/acre.
Cost data modified from: Holmes 2014
http://www.agribizshowcase.com/wpcontent/uploads/2012/02/Cover-Crops-in-Iowa-Holmes.pdf;
Glyphosate cost estimate:
http://www.nass.usda.gov/Statistics_by_State/Iowa/Publicatio
ns/Prices/reports/IA_PRICESPAID_04_14.pdf
$16.75
Cover crop termination by disking could
involve 2 + passes, yet one pass is likely to
occur regardless of the presence of cover
crops so only one pass is counted here.
Cost data: Plastina and Johanns (2016)
Increased Management cost is a general
category; includes extra time spent: walking
fields to assess cover crop progress, adjusting
equipment, etc. Assumed to be 3% of
establishment & Mgt cost.
General management information from The Iowa Learning
Farm: http://www.extension.iastate.edu/ilf/content/covercrop-resources
Based on Iowa field trials, the impact of
cereal rye on corn and bean yields is
assumed to be negligible.
Yield trial data: Iowa Learning Farms & PFI 2014
Increased crop
management
0
Variable
Variable
Impacts on crop
yield
0
Variable
--
1
There are a number of different cover crops that are suitable in Iowa under certain conduction and locations. Cover crop choice is a matter of field level land use goals
and regional crop suitability. The Midwest Cover Croup Council has a tool that can help farmers make cover crop selection choices: http://www.mccc.msu.edu/selectorintro.html
2
Establishment and management of cover crops will vary depending on initial conditions, soil, previous cropping system, and practice design (including choice of crop,
planting and termination).