Cover Crops Show Payoff When Grazing Cuts Costs

South Dakota research found grazing can help cover crops generate positive returns sooner.

Field of pink crimson clover. Agriculture nitrogen-fixing cover crop_Photo by Michaela via AdobeStock_400994928.jpg

Field of pink crimson clover, a nitrogen-fixing cover crop used in agriculture to manage soil health.

Photo by Michaela via Adobe Stock

BROOKINGS, S.D. (RFD News) — Cover crops can improve soil health and drought resilience, but South Dakota State University Extension says economics remain a major barrier to adoption. Establishment costs typically range from $42 to $120 per acre, depending on seed, planting, fertilizer adjustments, and termination.

Research cited by SDSU estimates cover crops can reduce fertilizer costs by about $7.98 per acre and improve subsequent crop returns by $31.37 to $66.42 per acre. Benefits from erosion control, water infiltration, and soil structure may add value over time.

Integrating livestock can improve the near-term economics. South Dakota research found grazing cover crops generated net benefits of $17.23 per acre in the first year and $43.61 per acre in the second year after accounting for establishment and grazing expenses.

Cost-share programs can also reduce financial risk. The Environmental Quality Incentives Program can cover up to 75 percent of establishment costs, while the Conservation Stewardship Program supports producers expanding more advanced systems.

SDSU says adoption remains modest statewide but is growing in several eastern South Dakota counties.

Farm-Level Takeaway: Grazing and cost-share assistance can help cover crops reach a positive return sooner while producers build longer-term soil benefits.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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