Cost Share Programs Boost Cover Crop Adoption

By Scout Nelson

New research from South Dakota State University’s Ness School of Management and Economics shows that cost share programs play a major role in helping farmers overcome financial barriers to cover crop adoption. The findings reveal that these programs not only support enrolled farmers but also inspire non-participants to adopt the practice, creating a positive “spillover” effect across the agricultural community.

Cover crops offer numerous environmental and production benefits, including improved soil fertility, water infiltration, and erosion control. They also help reduce nutrient runoff, enhance weed control, and support long-term crop yields. However, high upfront costs for seed, planting, and termination often discourage adoption, especially when economic benefits take years to appear.

According to researchers Tong Wang and Hailong Jin, cost share programs such as the Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP) have been vital in offsetting these costs. Participating farmers can receive up to 75% of implementation expenses, making it easier to try conservation practices earlier.

Their study, based on survey data from 350 eastern South Dakota farmers (2018–2021), found that 56% had adopted cover crops by 2021. Farmers enrolled in cost share programs began adopting cover crops two to four years earlier on average than those without financial support.

Interestingly, researchers found that even non-participants are now adopting cover crops independently. About 71% of current adopters fund cover crops without cost share help, demonstrating the long-term influence of these programs.

"We found that adopters receiving no cost share constitute most of the recent cover crop adopters," Wang said. "By motivating some producers to become early adopters (10-plus years), cost share programs have indirectly incentivized more farmers to adopt at their own expenses in more recent periods."

The study, published in Applied Economic Perspectives and Policy (2025), highlights how cost share programs shift adoption trends, creating long-term sustainability for U.S. agriculture. Funding for the research was provided by the South Dakota Corn Utilization Council.

Photo Credit: credit-minnesota-corn-growers-association