Cover Crop Financial Incentives Expand for Fall Seeding

By Kurt Lawton

PFI seeks more farmers to receive $10 to $40 per acre incentive to plant cover crops through one of eight programs across eight states.

Practical Farmers of Iowa (PFI) offers a variety of private cover crop cost share programs that are still available if you sign up soon!


Farmers can receive from $10 to $40 per acre by seeding cover crops this fall, depending on individual program details. These payments can be coupled with publicly-funded NRCS, WQI, or crop insurance cost share programs. Land is not eligible if it’s already enrolled in another private cost share program and enrollment is limited to one corn and one soybean PFI-managed program.

“Last year farmers took advantage of more than $1 million dollars in cover crop cost share paid by food and beverage companies to corn and soybeans growers in their supply chains,” says Sarah Carlson, Strategic Initiatives Director for Practical Farmers of Iowa (PFI). “Companies are hungry to support farmers making lasting changes to their farms through the addition of cover crops and want to help de-risk adding the practice through offering cost share incentives. More than 600 farmers worked with PFI in 2020 and in 2021 we are on target to work with nearly 800.”

Prairie City, Iowa, farmer Will Cannon became involved in the Unilever/ADM program when they began a project for sustainably-sourced soybean oil for Hellmann’s mayonnaise through the ADM soybean crushing plant in Des Moines. “Working with Unilever has been great and I give a lot of credit to them, ADM, and PFI for creating an economic incentive to not only expand cover crop acres, but to help farmers become more effective at growing them as part of their cropping system.”

The benefits Cannon receives by participating in these cost-share programs has inspired him to think beyond simply paying for seed and application. “We’ve used the economic incentive to invest in application technologies and build a cover crop system for corn and soybeans much faster than we ever could have on our own,” he says. “It’s been a great program to help us seed cover crops on all our acres every year.”

Oakland, Nebraska, farmer Matt Nelson is in his second year using the Cargill/PepsiCo/Bayer cover crop program as he sells corn to the Cargill elevator in Blair. As a cow-calf producer, he likes the multiple benefits from flying on a cover crop mix of cereal rye, radishes, turnips, and oats into standing corn in August. “Extra forage from the cover crops for the grazing cows reduces our hay costs during fall and winter,” he says. “Then in the spring we plant soybeans green into the tall cereal rye before we terminate the rye. We’re seeing soil health benefits, plus the mat created by the rye reduces our weed control costs—increasing the total program value with reduced cover crop seed costs thanks to this program.”+

Cover crop stand before before planting at Mike Nelson’s farm.

 

Cereal rye mat aids weed control and reduces costs for Nelson.

 

Total program value is increased with reduced weed control costs and better soil health.

 

Cannon likes seeing more cover crops seeded in his area every fall and he continues to enlist local farmers to reap benefits from cover crops and these programs. Each program is tied to locations where farmers sell their corn or soybean commodities. Multiple elevator facilities are eligible as listed below and on the website. Check out the programs in your area to see if you qualify and sign up today.

1. Central Iowa: ADM/Unilever Sustainable Soybean Cover Crop Program

You can qualify for this program if you sell soybeans into the central Iowa ADM supply chain: Direct to ADM Des Moines; Direct to ADM-Atlantic; or if you sell direct to any of the following facilities: 21 Century Co-op, BB&P Feed and Grain, DFS, Heartland Co-op, Key Co-op, Landus, Mid-Iowa Co-op, Pella Feed Service, Smith Fertilizer and Grain, Two Rivers Co-op, or United Farmers Co-op.

If you’re new to cover crops, you’ll receive $40 per acre on up to 40 acres. Existing cover croppers can get $10 per acre on 160 acres or 10% of acres farmed, whichever is larger. To be eligible for this program, the targeted field cannot be enrolled in another private cost share program like Indigo Carbon, ESMC, Bayer Carbon or Nori. PFI adds a set of usual requirements for education, verification, and planning. ADM/Unilever will compensate farmers by March 31, 2022, upon verification of completed requirements.

2. Eddyville, Iowa: PepsiCo/Cargill Low Carbon Corn Program

Qualify if you sell corn to the Cargill facility in Eddyville or any of the following facilities: Heartland Co-op, Key Co-op, Two Rivers Co-op, Mid-Iowa Co-op, Smith Fertilizer & Grain, DFS in Oskaloosa, United Farmers Co-op, Pella Feed Service, Fremont Elevator, The Tri-County Grain Corp, Troy Elevator, MFA, or Hedrick Elevator.

New cover crop growers receive $40 per acre on up to 40 acres, and existing cover croppers receive $10 per acre on 160 acres or 10% of acres farmed, whichever is larger. Plant cover crops in fall 2021 on land not enrolled in another private cost share program like Indigo Carbon, ESMC, Bayer Carbon, or Nori. If participating in the Soil and Water Outcomes Fund program, field eligibility needs to be determined. PFI adds a set of usual requirements for education, verification, and planning. Pepsi/Cargill will compensate farmers by March 31, 2022, upon verification of completed requirements.

3. Iowa and Nebraska: Cargill/Pepsico/Bayer Low Carbon Corn Cover Crop Cost Share Program

Qualify if you sell corn to the Cargill facility in Blair, Nebraska, or any of the following facilities: New Cooperative (Fort Dodge, Iowa), Cogdill Farm Supply (Dunlap Iowa), Heartland Co-op (Blair, Nebraska, area only), Central Valley Ag (York, Nebraska), CHS Inc (Cenex Harvest States), Gavilon Grain (Fremont, Nebraska), or Norag LLC (West Union, Iowa).

New and existing cover crop users receive $10 per acre up to 200 acres. Targeted field cannot be enrolled in another private cost share program like Indigo Carbon, ESMC, Bayer Carbon, or Nori. If participating in the Soil and Water Outcomes Fund program, field eligibility needs to be determined. PFI adds a set of usual requirements for education, verification, and planning. Cargill will compensate farmers by March 31, 2022, upon verification of completed requirements.

4. Clinton, Iowa: ADM Cover Crop Program

Qualify if you sell corn to the Clinton ADM supply chain. New and existing cover crop users receive $10 per acre up to 200 acres. Targeted field cannot be enrolled in another private cost share program like Indigo Carbon, ESMC, Bayer Carbon, or Nori. If participating in the Soil and Water Outcomes Fund program, field eligibility needs to be determined. PFI adds a set of usual requirements for education, verification, and planning. ADM will compensate farmers by March 31, 2022, upon verification of completed requirements.

5. Columbus, Nebraska: ADM Cover Crop Program

Qualify if you sell corn to the Columbus ADM facility. Targeted field cannot be enrolled in another private cost share program like Indigo Carbon, ESMC, Bayer Carbon, or Nori. If participating in the Soil and Water Outcomes Fund program, field eligibility needs to be determined. PFI adds a set of usual requirements for education, verification, and planning. ADM will compensate farmers by March 31, 2022, upon verification of completed requirements.

6. Crete, Nebraska: Centerfield Cover Crop Program

Qualify if you sell corn to the Bunge Crete facility. Targeted field cannot be enrolled in another private cost share program like Indigo Carbon, ESMC, Bayer Carbon or Nori. PFI adds a set of usual requirements for education, verification and planning. Bunge will compensate farmers by March 31, 2022, upon verification of completed requirements.

7. Mound City, Missouri: Lifeline Cover Crop Program

Qualify if you sell corn to the Mound City Lifeline facility. Targeted field cannot be enrolled in another private cost share program like Indigo Carbon, ESMC, Bayer Carbon or Nori. PFI adds a set of usual requirements for education, verification, and planning. Lifeline will compensate farmers by March 31, 2022, upon verification of completed requirements.

For more details visit PFI’s Cover Crop Programs and click on the link that shows a map or contact Sarah Carlson: sarah@practicalfarmers.org or 515-232-5661.