2021 Cost-Benefit Analysis of Conservation Farming Practices

Co-led by NASA Harvest partner and ICGA’s Director of Water Quality Research, Dr. Laura Gentry, Precision Conservation Management (PCM) is the premier farmer service conservation program of the Illinois Corn Growers Association (ICGA). Initiated through funding by the USDA Natural Resources Conservation Service Regional Conservation Partnership Program and now co-led with the Illinois Soybean Association, PCM connects directly with farmers in service of evidence-based agricultural conservation practices. The initiative combines precision technology and data management with farm business and financials to help farmers manage, adopt, and adapt conservation practices long-term and improve on-farm decision-making. The program’s primary goal is to integrate conservation practices and financial data to help farmers better understand how specific management changes can impact both their environmental impact and their bottom line.

PCM promotes the efficiency and financial viability of adopting conservation farming practices by helping to simplify and manage the risks associated with adopting new farming methods. Placing high value on the business perspective of farmers, PCM evaluates ways to reduce environmental impacts of commercial agriculture on waterways and soil health without sacrificing farm profitability. In support of these goals, The Business Case for Conservation: Cost-Benefit Analysis of Conservation Practices is a key publication released each year, providing a holistic analysis of science-based data as it applies to conservation farming methods. Program leaders emphasize that it is critical to demonstrate that environmental goals can be achieved at the farmer level in a financially responsible way and encourage readers to “consider that obtaining high yields, and the higher input costs that goal often requires, may not be the best economic or conservation model for Illinois farms and Illinois farm families.” There is a long-held belief across the agricultural community that higher crop yields inextricably lead to increased profitability. However, the report provides evidence that the reduction of costs that often come with adopting precision conservation farming practices is a critical component of increased profitability, challenging the notion that higher yields will always lead to increased profits.

PCM understands that in order for conservation practices such as cover cropping and reduced tillage to be sustainable, their uptake and continuation over time must be relatively low-risk and financially viable for farmers. Therefore, the program works directly with cooperating farmers to collect and analyze field-level data, provide tools that help farmers identify opportunities to effectively implement regenerative farming methods, and connect across the agricultural supply chain to support farmers’ conservation efforts. In support of this broad agrifood system approach, this year PCM has announced a new partnership with the Illinois Soybean Association, doubling the size of the program from 15 to 31 counties and building what will become a landmark conservation program influencing conservation decisions on farm and policy decisions. PCM has also expanded into the major commodity crop-producing state of Nebraska by partnering with PepsiCo, the Nebraska Corn Board and the Nebraska Natural Resources Districts. These partnerships not only increase the footprint of the PCM program by reaching even more farmers, but also advance understanding of the various benefits of changing farm management practices as the best way to make positive water quality and climate impacts.

 While program expansion and partnerships across the agricultural sector are certainly key components of driving widespread positive change, farmer data and building trust remains at the forefront of the conversation. PCM recognizes that sharing field data is a difficult decision, especially when privacy and data usage are factored into the equation. Notably, PCM is a voluntary program that enables farmers to apply their field data in service of furthering the health and sustainability of both their own businesses and also that of the agricultural industry as a whole. Because the program heavily stresses a farmer-first approach, PCM is thoroughly transparent about how data is collected and analyzed, using aggregated and anonymized data to protect family farms while simultaneously serving the broader community. The team treats farmer data “just like what it is: a product of your farming operation that is valuable and influences the future of all farmers in this country” while also conducting ethically sound research on data-centric topics that farmers care most about like strip tillage, nitrogen fertilizer management and cover crops. This approach has caught the attention of policymakers who are responsible for crafting agricultural laws and regulations, enabling PCM to accurately and fairly represent farmers in policy debates on conservation practices.

For example, this year’s Business Case for Conservation notes that PCM member farmers have had an extremely positive environmental impact, seeing over 615,000 pounds of nitrogen reduction, 90,000 pounds of phosphorus reduction, 127,000 tons of sediment loss reduction, 141,000 acres of reduced tillage, close to 62,000 acres of in-season nitrogen application, and over 35,000 acres of cover crop planting. The report details various kinds of environmental assessments such as soil erosion, water quality index (an NRCS metric that evaluates runoff water quality) and greenhouse gas emissions. The report also provides analyses of the most profitable strategies for corn and soybean production, tillage application data and recommendations, nitrogen application information, and an evaluation of corn and soybean cover cropping.

Visit the Precision Conservation Management website to read the full report on The Business Case for Conservation: Cost-Benefit Analysis of Conservation Practices.