Soil health is the foundation for productive and resilient cropping systems. Soil health management systems (SHMS), designed to minimize soil disturbance, maximize soil cover, encourage the presence of living roots, and enhance system diversity, can build drought resilience, reduce erosion, and increase nutrient availability. Investing in SHMS is a strategic business decision, and farmers interested in adopting these systems need information to support these investments to ensure the economic vitality of their operations.
The Soil Health Institute (SHI), in partnership with General Mills, interviewed 15 small grain farmers in the U.S. and Canada to examine the economic and on-farm benefits they experienced, aiming to provide essential economic information to support informed decision-making among small grain growers in both countries.
Approach
SHI conducted partial budget analysis to evaluate the economic impacts of SHMS adoption on 10 wheat farms in Kansas (KS) and North Dakota (ND), and five small grain farms in Manitoba, Saskatchewan, and Ontario, Canada. This approach compares costs and benefits before and after SHMS implementation. More details on SHI’s partial budget methodology can be found here: https://soilhealthinstitute.org/economics. On average, interviewed farmers had been practicing no-till for over 15 years and cover cropping for over 11 years, with farm sizes averaging 1,600 acres in the U.S. and 3,851 acres in Canada.
Summary of Economic and On-Farm Benefits
Average increase in net farm income for small grains from adopting a SHMS on 10 farms in KS and ND.
Average increase in net farm income for small grains from adopting a SHMS on five farms across Manitoba, Saskatchewan, and Ontario, Canada.
Average increase in net farm income across all crops in rotation (including grazing value, if applicable) from adopting a SHMS on 10 farms in KS and ND.
Average increase in net farm income across all crops in rotation (including grazing value, if applicable) from adopting a SHMS on five farms in Manitoba, Saskatchewan, and Ontario, Canada.
All 15 farms reported increased crop resilience from adopting a SHMS.
Twelve out of 15 farms reported increased field access from adopting a SHMS.
Summary
Farmers interviewed for this study have maintained their use of no-till and cover cropping for decades, showcasing the effectiveness of these practices. This sustained implementation has allowed them to boost their net farm income primarily by reducing expenses for producing small grains, with average savings of US$15/acre in the U.S. and US$27/acre in Canada, notably from decreased labor, fertilizer, and equipment ownership costs. Additionally, while small grain yield impacts attributable to SHMS varied across farms, with two farmers reporting yield increases, one reporting reduced yield, and 13 reporting no change, additional benefits of adopting SHMS were highlighted, including increased resilience to extreme weather, improved water quality, and enhanced soil organic matter, among others. Results from this analysis indicate that small grain farmers across the U.S. and Canada currently practicing conventional production methods may improve their profitability and operational resilience by adopting a SHMS tailored to their operation.
More detailed results are provided in the following factsheets: