Economics

Soil Health Business Case

Economics



of Soil Health Systems

ABOUT THE RESEARCH

Farmers and ranchers are business men and women, and the questions that often present the most significant barrier to adoption of soil health management systems pertain to the business case. The Soil Health Institute interviewed 100 farmers in 9 states who have adopted soil health systems and used partial budget analysis to evaluate their economics and answer the following question:

DO SOIL HEALTH PRACTICES INCREASE OR REDUCE PROFITABILITY?

The most desirable and robust information on how soil health affects profitability comes from real-world, on-farm data. However, a challenge is that every farm is different, making it difficult to know how repeatable results are from one farm to another. Insight into how reproducible results are across different soils, climate zones, and production systems can be obtained with replicated research plots; recognizing that research plots are very different from farms.

Consequently, the Institute is using a two-pronged approach for assessing profitability of soil health systems where the reality experienced by farmers is supplemented by results from nearby research sites. In each case, the Institute uses partial budget analysis as the tool for comparing expenses and returns in a soil health management system compared to a conventional management system.

A description of the partial budget analysis approach used by the Soil Health Institute can be found here.

HIGHLIGHTS OF THE SOIL HEALTH INSTITUTE'S 9-STATE ECONOMIC ANALYSIS
ON ADOPTING SOIL HEALTH MANAGEMENT SYSTEMS (SHMS)

100

farms assessed in states where 71% of the corn and 67% of the soybeans are grown in the U.S.

Background and Summary of Findings Across All 100 Farms

97%

reported increased crop resilience to extreme weather

85%

Net income increased for 85% of farmers growing corn and 88% of farmers growing soybean

67%

reported a higher yield than their conventional system

$24

Reduced the average cost to grow corn by $24/acre and soybean by $17/acre

$52

Increased net farm income by an average of $52/acre for corn and $45/acre for soybean

GET THE STATE-BY-STATE REPORTS

Register below for one or more webinars and receive the corresponding fact sheets

REGISTRATION IS FREE BUT REQUIRED

Iowa| 3/18/21 | 1pm CT/2pm ET
Iowa
3/18/21 | 1pm CT/2pm ET

Nebraska| 3/25/21 | 1pm CT/2pm ET
Nebraska
3/25/21 | 1pm CT/2pm ET

Tennessee| 4/1/21 | 1pm CT/2pm ET
Tennessee
4/1/21 | 1pm CT/2pm ET

Illinois| 4/8/21 | 1pm CT/2pm ET
Illinois
4/8/21 | 1pm CT/2pm ET

Indiana| 4/15/21 | 1pm CT/2pm ET
Indiana
4/15/21 | 1pm CT/2pm ET

South Dakota| 4/22/21 | 1pm CT/2pm ET
South Dakota
4/22/21 | 1pm CT/2pm ET

Minnesota| 4/29/21 | 1pm CT/2pm ET
Minnesota
4/29/21 | 1pm CT/2pm ET

Ohio| 5/6/21 | 1 pm CT/2pm ET
Ohio
5/6/21 | 1 pm CT/2pm ET

Michigan| 5/13/21 | 1pm CT/2pm ET
Michigan
5/13/21 | 1pm CT/2pm ET

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Economics of Soil Health Systems on 100 Farms is supported through the generosity of Cargill.