Soil Health Management Systems may increase net income for farmers as studies show that many farmers saw an overall decrease in input costs, as well as potential modest yield increases when implementing a Soil Health Management System from a conventional cropping or production system.
Introduction
Healthy soil boosts productivity and protects long‑term farm profitability. By improving organic matter and soil structure, farmers can reduce input costs, strengthen resilience to drought and floods, and support reliable yields. USDA conservation programs help offset early adoption costs and encourage practices that build soil health, benefiting both farm economics and the environment through cleaner water and increased carbon storage.
Economics Tools
Many Economic Tools are available to aid in planning SHMS. The tools below are free and provided and/or funded by NRCS.
Cover Crop Economic Calculator - This program helps growers understand the impact of cover crops on profitability when making crop management changes.
Conservation Practices Data Innovations (CPDI) - Find conservation practices and NRCS sponsored projects & initiatives in your location.
Conservation Practices Physical Effects (CPPE) - The CPPE matrix, and associated planning tools, describe how NRCS’s conservation practices affect Natural Resource and Human-Economic Environments.
Predictive Soil Health Economic Calculator (PSHEC) - Designed for farmers, ag advisors, and conservation planners, the P–SHEC tool estimates the potential long-term costs and benefits of adopting certain soil health practices. The tool predicts a 10-year Net Present Value from the changes in yield and yield stability under drought due to changes in Soil Organic Matter from adopting soil health practices.
Biochar Cost-Benefit Analysis Tool enables the user (with guidance tailored to the pacific northwest) to estimate the costs and financial benefits of utilizing biochar on their operation, by including estimated costs and allowing the user to personalize those costs (if known).
Case Studies
These Economic Case Studies have been produced by Natural Resources Conservation Service (NRCS) partners in collaboration with the NRCS and other partner organizations and government agencies. They are meant to give basic information on how implementing soil health practices on an agricultural operation may increase profits due to the level of increase and decrease of certain inputs.
Soil Health Case Studies on NACD.net
Soil Health Institute, Economics of Soil Health Systems on 30 U.S. Farms
American Farmland Trust, Soil Health Case Studies