Cover crops are gaining attention across South Dakota as more producers look for ways to improve soil health, manage risk, and strengthen long‑term productivity. Research consistently shows that cover crops improve soil structure, increase water‑holding capacity, reduce erosion, and help buffer crop losses during drought or extreme weather (Wang and Jin 2025; Wang et al. 2020; Aglasan 2023). Although adoption remains modest—rising from 0.9 percent of cropland in 2012 to 2.3 percent in 2022—several eastern counties now exceed 4 percent, signaling growing regional leadership in cover crop use (Wang and Cheye 2024).
For many operations, the key question is whether cover crops can work economically. The most common barrier to adoption is the up‑front investment required to seed and manage a cover crop. Establishment costs typically range from $42 to $120 per acre, including seed, planting, fertilizer adjustments, application, and termination (Bergtold et al. 2017). Producers may also face opportunity costs such as delayed planting or soil‑moisture use in dry years, which can influence short‑term profitability. These early‑season considerations often shape whether cover crops fit into a particular operation.
Despite these initial costs, cover crops can generate meaningful returns over time. Research shows that they reduce fertilizer needs by roughly $7.98 per acre and can improve yields in subsequent crops by $31.37 to $66.42 per acre (Bergtold et al. 2017). Improvements in soil function, water infiltration, and erosion control also contribute to long‑term productivity and resilience, even if those benefits are harder to quantify in a single season.
South Dakota research highlights how integrating livestock can accelerate economic returns. Tobin et al. (2020) found that grazing cover crops generated a net benefit of $17.23 per acre in the first year and $43.61 per acre in the second year. These estimates reflect a whole‑system evaluation that includes seed, planting, and termination costs, the value of grazing, and additional expenses such as fencing materials, energizers, water tanks, and water hauling. For many operations, grazing integration is the most effective way to turn cover crops into a positive economic contributor early in the adoption process.
Financial assistance programs play a central role in reducing risk and encouraging adoption. A Corn Belt survey found that 56 percent of producers would adopt cover crops if cost‑share support were available (Tobin et al. 2020). The Environmental Quality Incentives Program (EQIP) is designed for first‑time or early‑stage adopters and can cover up to 75 percent of establishment costs, including seed, planting, and termination. EQIP also provides technical assistance from conservation planners, and contracts typically last one to five years, giving producers time to learn how cover crops fit into their system without carrying the full financial burden.
For producers who already use cover crops and want to expand or enhance their system, the Conservation Stewardship Program (CSP) offers a different type of support. CSP rewards ongoing conservation and encourages higher‑level management, including multi‑species mixes, deeper‑rooted varieties, and improved grazing integration. Contracts last five years and can be renewed, offering a longer planning horizon for refining cover-crop strategies. Because CSP evaluates whole‑farm conservation performance, cover crops often complement broader stewardship goals such as improving soil structure, reducing erosion, and increasing water infiltration.
Both EQIP and CSP accept applications annually through local USDA Service Centers. New EQIP and CSP applications are typically due January 15, and CSP renewals are due June 20 on an annual basis. These programs continue to play an important role in helping South Dakota producers manage risk, build soil health, and strengthen the long‑term economic performance of their operations.
References
- Aglasan, Serkan, et al. Cover Crops, Crop Insurance Losses, and Resilience to Extreme Weather Events. American Journal of Agricultural Economics, 12 Oct. 2023.
- Bergtold, J.S., S. Ramsey, L. Maddy, and J.R. Williams. 2017. "A Review of Economic Considerations for Cover Crops as a Conservation Practice." Renewable Agriculture and Food Systems 34(1): 62–76.
- Tobin, C., S. Kumar, T. Wang, and P. Sexton. 2020. “Demonstrating short-term impacts of grazing and cover crops on soil health and economic benefits in an integrated crop-livestock system in South Dakota” Open Journal of Soil Science, 10 (3), 109-136. DOI: 10.4236/ojss.2020.103006
- Wang T., X. Zheng, D. Kolady, J. D. Ulrich-Schad and D. Clay. 2021. Cover crops usage in South Dakota: farmer perceived profitability and future adoption decisions. Journal of Agricultural and Resource Economics, 46(2): 287-307. doi: 10.22004/ag.econ.304768.
- Wang T. and Cheye S. (April 8, 2024). Conservation Practices Increasing in South Dakota.
- Wang, T. and H. Jin. 2025. Effectiveness of government cost share programs on cover crop adoption: A new perspective. Applied Economic Perspectives & Policy.
