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Cover Crop ROI & All That Matters

Crunching the Numbers Via Biological Bookkeeping

By Mike Seifert
July 27, 2022

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Note: Earlier this summer, Land Stewardship Project soil health organizer Alex Romano reached out to one of our soil health steering committee members, Mike Seifert, who farms near Jordan, Minn., with his wife, Dana, and father, Big Mike, to ask for his thoughts on “return on investment” from cover crops. She wanted to know his approach to and considerations regarding those calculations when making decisions about cover cropping strategies. He was happy to respond to her question. But he found that as he sat down to consider the question and write about it, thoughts that emerged brought up deeper, heart-level questions for him. These are issues that farmers and non-farmers alike grapple with, but that can be difficult to verbalize, let alone wrap our heads around. Members of LSP’s soil health team were moved by the perspectives and deeper questions that Mike outlined with such clarity and thoughtfulness. So, with his permission, we’re offering up the farmer’s response to the “ROI” question:

Mike Seifert seeding cover crops on his farm near Jordan, Minn.

Oh boy, that’s a big, open-ended question. When I saw your e-mail come in a couple of days ago I said to myself, “I’m going to have to sit down in the office to answer this one.” So I hope you don’t mind if I riff on it for a while over my morning coffee, and try to outline the multiple perspectives I have on return on investment and cover crops.

So, when I hear the term “return on investment,” my first reaction is a financial one, since that term is rooted in matters of finance. As such, let’s tackle that aspect of the term first.

From a farm bookkeeping perspective, cover crops are an added expense, and the financial benefit we as farmers get from using cover crops is this amorphous thing that’s hard to pin down. All of the physical benefits from cover crops — improved soil structure, nutrient cycling, feeding the soil biological community, reduced erosion, armoring the soil surface, potential feed for livestock, alleviating compaction, adding organic matter, and on and on — are wonderful, desirable enhancements, but they’re really hard to quantify and translate to financial numbers, and a lot of them are cumulative over several years. I suspect some benefits are even exponential — that is, once you get your soil on a healthy path to recovery and practice careful management, the feedback loop will become positive and actually accelerate until the soil environment achieves a more natural balance.

But how do you put a dollar sign on any of that? It’s absolutely nothing like traditional agronomy, which loves easy charts and figures. Two hundred units of nitrogen will grow 200-bushel corn! Nothing to it! If the fertilizer is affordable, it’s a slam dunk! Just ignore the part where you’re destroying the natural cycle of things. We’ll worry about that later.

So for me, cover crops have to be taken as a long game when it comes to return on investment. And since I really can’t quantify how much my farm production will increase as a result of using cover crops, I just have to take it on faith that it will, and that I will more reliably and consistently produce successful cash crops — particularly on my most fragile and degraded acres. Four years into a method of farming that includes cover cropping, I’d say we’re starting to see that, but I think the best is yet to come, so we’ll continue to be patient and try to do the right things.

Now, if cover crop ROI needs to be taken as a long term investment, how do we reconcile the extra expense in the short term? For me, that one was easy: we pair it with no-till. I think the money we’ve saved in fuel alone each year has covered the extra cost of cover crop seed. Then factor in reduced equipment costs and time savings, and it starts to be a big win. This year, we’re growing our own winter rye for seed, so that’ll knock expenses down even more. So there are lots of ways to offset the short term costs which then, over time, become another part of the long term financial benefit of cover crops.  But you have to combine complementary practices to really get the full benefit of each.

No-till and cover crops augment one another. Diversifying your crop rotation and incorporating livestock each add another reinforcing layer to the financial structure. They also add more work and management! But I think the financial benefits outweigh the added time and attention, and open up more opportunities to be flexible — which is increasingly important in a world that constantly throws us financial and climatological curve balls.

So that’s my take on the financial aspect of ROI and cover crops.

But now I’m going to stray into another aspect of all of this, which is more of the moral and ethical aspect to regenerative agriculture. I’m currently reading two books.  The first is The Uninhabitable Earth by David Wallace-Wells, and the second is Braiding Sweetgrass by Robin Wall Kimmerer. It’s actually a pretty good pairing, because the optimistic and insightful prose of Kimmerer’s book pretty effectively mitigates the sheer terror of Wells, who is out to demonstrate with evidence that when it comes to climate change, we’re already waist-deep in the rapidly rising shit and just trying to pretend the smell is normal.

The fact is that in the coming years and decades, our food production system is going to be under an enormous and increasing strain. If we can’t figure out how to exist on this planet without merging our civilization into a more harmonious rhythm with the natural world, then any talk of financial ROI — whether it be in cover crops or real estate or the latest share price of Tesla stock — is all going to become a very moot point. You can’t put a dollar amount on the survival of our species and the other roughly 8.7 million species with whom we share this delicate biosphere. We consistently fail to see that we’re completely dependent on the very biological systems that we are methodically destroying, and that has to change. It just simply has to. Right now.

I could go on and on, but that’s a depressing subject, so I’ll get to the point. When it comes to cover crops and other agricultural practices that help preserve and revitalize the ecosystem, I personally only look at the financial aspect of all of this as much as necessary. I do my bookkeeping and make sure we pay our bills so we can keep going, but I try not to let the financial side of agriculture cloud my vision of the larger picture. We need solutions, so I try to keep over 50% of my focus on finding and experimenting with practices that are going to make our food production system more resilient, while also sequestering carbon and providing habitat for as many of our fellow terrestrial organisms as possible. If every agricultural producer started shifting to that mindset, we’d be getting somewhere.

In my mind, the real return on investment from all of this will be a habitable (hopefully even pleasant!) planet to live on, and the ability to look in my kid’s eyes and tell her I did everything I could to be a part of the solution.

In episode 269 of LSP’s Ear to the Ground podcast, Mike Seifert talks about how a creepy crawly experience in the dark of night convinced him he was on the right soil health path. A recent Land Stewardship Letter article describes the Seifert family’s transition to no-till and cover cropping. For more on how to build soil health profitably, check out LSP’s Soil Builders’ Network web page.

Category: Blog
Tags: Braiding Sweetgrass • climate change • cover crops • Dana Seifert • Mike Seifert • ROI • soil health • Uninhabitable Earth

Upcoming Events

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January 2026

Tuesday January 20

5:00 pm – 8:00 pm
Making the Most of Each Acre: Integrating Livestock onto Cropland
Tuesday January 20
5:00 pm – 8:00 pm
Making the Most of Each Acre: Integrating Livestock onto Cropland
680 Byron Main Ct. NE Byron, MN 55920

In this interactive workshop, farmers will learn about important soil, finance, crop, and livestock concepts related to crop and livestock integration. In addition to presentations by Extension educators, participants will engage in activities to put their newfound knowledge to the test. Participants will gain knowledge, new connections, and a personalized plan for integrating crops and livestock on their farm.
 
For details and to register, click here. 

Wednesday January 21

5:00 pm – 7:00 pm
Farm Aid Farmer Listening Session
Wednesday January 21
5:00 pm – 7:00 pm
Farm Aid Farmer Listening Session
Zoom online

What’s your story?

Farm Aid wants to hear from farmers about what they experienced in 2025 and what concerns they have heading into the 2026 season. Farm Aid will use the information and stories we hear during this listening session to make sure that our advocacy and policy work is grounded in the needs and experiences of family farmers right now.

Come learn more about Farm Aid’s policy and advocacy work, share your story with the Farm Aid community, and hear from farmers around the country about what they’re experiencing.

For more information and to register, click here. 

If you can’t make it to this listening session, share your story with us by filling out this form. 

Thursday January 22 – Saturday January 24

GrassWorks Grazing Conference
Thursday January 22 – Saturday January 24
GrassWorks Grazing Conference
La Crosse Center, 300 Harborview Plaza, La Crosse, WI 54601, USA

The 34th Annual GrassWorks Grazing Conference will take place Jan. 22–24 at the La Crosse Center in La Crosse, Wis.

The 2026 conference will be centered on the theme: “Pastures to Prosperity: Building financially smart grazing systems for today’s land stewards.” This year’s focus highlights practical, innovative, and profitable approaches to grass-based livestock production, equipping farmers with tools to strengthen both environmental and economic sustainability.

GrassWorks is excited to welcome two nationally recognized keynote speakers:

  • Melinda Sims, Wyoming cattle rancher and Ranching for Profit instructor, known for her expertise in financial decision-making and resilient ranch business models.
  • Dwayne Estes, Executive Director of the Southeastern Grasslands Institute, a leading voice in grassland restoration, regenerative grazing, and agricultural landscape resilience.

Conference highlights include:

  • More than 60 expert speakers from across the grazing and agricultural sectors
  • Over 45 industry exhibitors featuring the latest in grazing tools, technology, and services.
  • Workshops for beginning, expanding, and experienced graziers
  • Panel discussions on farm profitability, land stewardship, and long-term business resilience.
  • Robust networking opportunities with farmers, technical service providers, and industry partners.

The GrassWorks Grazing Conference draws farmers, agricultural professionals, educators, and conservation partners from across the Midwest and beyond. Attendees can expect practical education, actionable strategies, and meaningful connections.

Registration information can be found at https://grassworks.org/events/grazing-conference.

Tuesday January 27

9:00 am – 3:00 pm
'Beyond Exports: Rebuilding Local Markets' LSP Soil Health Workshop
Tuesday January 27
9:00 am – 3:00 pm
'Beyond Exports: Rebuilding Local Markets' LSP Soil Health Workshop
Rochester International Event Center, 7333 Airport View Dr SW, Rochester, MN 55902, USA

On Tuesday, January 27 join Land Stewardship Project for our signature winter workshop. This year’s theme is “Beyond Exports: Rebuilding Local Markets”.

The workshop will be held from 9am to 3pm at the Rochester International Event Center (73333 Airport View Dr SW, Rochester, MN 55902).  Our featured keynote speaker is Martin Larsen, a farmer who is a founding member of the “Oat Mafia” in south-central Minnesota.  In the morning session, Martin will highlight the challenges and opportunities facing all farmers as they look beyond export load-out at the elevator and instead look to recreate the local markets that once served our farmers and consumers.  He will share his journey establishing food grade oats and founding the “oat mafia” and the agronomic, economic, and market impacts it has made for his farm.

After the keynote, attendees will have the option to choose two of three breakout sessions with local experts:

Session 1: Economics of Diversifying Your Rotations
Session 2: Marketing Your Alternative Crops
Session 3: Derisking Diversifying Your Rotations

Breakfast and a catered lunch will be provided.  

For details and to register, click here.
 
You may also contact event organizer Shea-Lynn Ramthun at 651-301-1897 or slramthun@landstewardshipproject.org. 

5:30 pm – 8:00 pm
LSP Farm Transition Planning Course
Tuesday January 27
5:30 pm – 8:00 pm
LSP Farm Transition Planning Course
Zoom Online

The Land Stewardship Project’s long-running course for farmers and other landowners looking to transition their agricultural operations to the next generation is expanding into South Dakota in 2026. The Land Stewardship Project (LSP) Winter Farm Transition Planning Course, which enters its 10th session in 2026, provides a holistic opportunity to dig into important topics and learn from experienced farmers and professionals about the options that farmers and landowners have when looking to pass their farm on.

The standard Zoom online LSP course will be held on seven Tuesday evenings starting on January 27 and running through March 10. The sessions build on one another, so attendance at all sessions ensures the greatest understanding and planning opportunities. The course fee is $250 per family, and registration is open through Jan. 9 at https://landstewardshipproject.org/transition2026.

New this year is an expanded course offering for South Dakota attendees as part of a partnership LSP has formed with Dakota Rural Action and Rural Revival.

The South Dakota course, led by Dakota Rural Action and Rural Revival and using the LSP curriculum, includes seven weekly in-person sessions, with a full-day Saturday kick-off session, and another full-day session to close the training. Sessions two through six will take place on Tuesday evenings for two-and-a-half hours. The dates are: Jan. 31, Feb. 3, Feb. 10,  Feb. 17, Feb. 24, March 3 and March 14. As with the fully online course, the course fee is $250 per family, and the registration deadline is Jan. 9. To register for the South Dakota course, visit https://qrco.de/farmtransitions2026.

Presenters at both workshops will include other area farmers who are implementing farm transition plans, as well as professionals representing the legal and financial fields as they relate to agricultural businesses. Workshop participants will have an opportunity to begin engaging in the planning process as well as to learn about resources for continuing the process after the workshop has ended.

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