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South Dakota State University

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Agricultural and Resource Economics

Conservation practice

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Full-Text Articles in Life Sciences

Cover-Crop Usage In South Dakota: Farmer Perceived Profitability And Future Adoption Decisions, Tong Wang, Zheng Xu, Deepthi Kolady, Jessica D. Ulrich-Schad, David Clay May 2021

Cover-Crop Usage In South Dakota: Farmer Perceived Profitability And Future Adoption Decisions, Tong Wang, Zheng Xu, Deepthi Kolady, Jessica D. Ulrich-Schad, David Clay

Economics Faculty Publications

Using bivariate ordered logit models, we investigate factors that determine farmers’ perceptions of cover-crop profitability and likelihood of future usage in the climate transition zone of the Northern Great Plains. Our results indicate that approximately 40% of long-term (10+ years) users perceived a profit increase of more than 5%. Additionally, future adoption decisions are positively affected by environment-oriented attitudes and negatively affected by prioritizing short-term profitability. More efforts can be directed toward educational programs that enhance understanding of the short- versus long-term economic benefits of cover crops.