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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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December 2025

Wednesday December 10

9:00 am – 11:30 am
Organic Fruit Growers Climate Resilience Workshop
Wednesday December 10
9:00 am – 11:30 am
Organic Fruit Growers Climate Resilience Workshop
Zoom online

In December and January, the Organic Fruit Growers Association is offering a series of climate resilience workshops. Workshop goals are to learn about the changing climate in our region and the expected impacts on fruit farmers and to select climate resilience practices which are suited to your farm’s goals and values. The outcome of the workshops will be a written climate resilience plan with actionable steps to make your farm more resilient to changing climate. 
 
Workshops will be led by University of Minnesota extension educators Katie Black and Madeline Wimmer and include times for farmer-to-farmer discussion. This series includes the following four meetings. Expect to spend an additional 4-10 hours outside the meetings developing your farm’s climate resilience plan:

  • Wednesday Dec. 3, 9 a.m.-11:30 a.m. (online via Zoom)
  • Wednesday, Dec. 10, 9 a.m.-11:30 a.m. (online via Zoom)
  • Monday, Dec. 22, discussion (online via Zoom — optional but encouraged)
  • Wednesday, Jan. 7, 10 a.m.-3 p.m. (in-person workshop in La Crosse, Wis. Lunch provided, and you can be reimbursed for mileage traveling to and from the meeting.)

For details and to register, click here. 

6:30 pm – 8:00 pm
How to Make Your Farm's Website Convert Visitors to Customers
Wednesday December 10
6:30 pm – 8:00 pm
How to Make Your Farm's Website Convert Visitors to Customers
Zoom Online

Join Sarah Carroll of Greener Pastures and Michelle M Sharp of Meet the Minnesota Makers in this 90-minute virtual workshop to learn about what your business website needs to tell its story, engage customers, and turn visits into real sales.

This workshop lays out the essential components of a user-friendly website for direct-to-consumer farms or food producers. No prior website skills are required.

Topics covered:

• How to make your products searchable by customers.

• What makes a compelling About Me page.

• The right balance of images to text.

• How to engage customers right from your home page.

• Incorporating FAQs.

Who this training is for:

This workshop is ideal for the farm or ag business that has launched an initial website that’s ready to upgrade or for the farm that has not yet created its own website. This workshop is both for farmers/food producers and ag ecosystem professionals that support farmers/food producers in their marketing and website efforts.

For details and to register, click here. 

Thursday December 18

All Day
MDA Urban Farm Conservation Mini-grant Deadline
Thursday December 18
MDA Urban Farm Conservation Mini-grant Deadline
MDA

A grant opportunity for urban farmers in Minnesota to receive up to $5,000 to make conservation-focused improvements is now open for applications.

The Minnesota Department of Agriculture (MDA) is once again offering an Urban Farm Conservation Mini-grant with approximately $100,000 available, thanks to funding from the USDA’s Natural Resources Conservation Service. This year the program has expanded eligibility.

Who is eligible:

  • Entities commercially farming in Minnesota, meaning they sell or donate at least $1,000 of what they produce.
  • Farm applicants must be located in or selling into a city with a population over 5,000 people, or be located within the boundaries of federally recognized tribal land in Minnesota and serve tribal community members.

The grant offers up to $5,000 per approved recipient which can be used to cover a variety of tools, supplies, services, and other expenses related to improving their urban farm.

Eligible projects include irrigation infrastructure improvements, tools and amendments for improving soil health, composting infrastructure, specialty crop rotation equipment and many other farm improvements which generate conservation outcomes.

Up to 100% of the total project costs may be covered by the grant, and a cash match is not required. Grantees will need to pay for eligible expenses up front and then request reimbursement, using proof of purchase and proof of payment.

An informational session will take place online at 1 p.m. on November 20 and registration is required. Language interpretation services may be requested for the information session by contacting Emily Toner at emily.toner@state.mn.us.

This is a competitive grant program and applications must be submitted by December 18.

Visit the Urban Farm Conservation Grant web page for more information on its application. The Request for Proposals is available for download in English, Spanish, Hmong and Somali.

11:00 am – 2:00 pm
Managing Cover Crops Effectively
Thursday December 18
11:00 am – 2:00 pm
Managing Cover Crops Effectively
830 Whitewater Ave, St Charles, MN 55972, USA

Program Includes:

  • Introduction to cover crop management
  • Funding and cost-share opportunities
  • Farmer panel and Q & A with panelists Mike Unruh, Ken Bergler, and Myron Sylling

Presentations from: Bailey Tangen (UMN) and Brad Jordahl Redlin (MDA).
 
Holiday conservation mixer following program.
 
This event is free but registration is required. For more information and to register, click here or call 262-325-6637. Details are also available on this flyer.

1:00 pm – 4:00 pm
Workshop: Sharing No-till Knowledge & Microbial Insights
Thursday December 18
1:00 pm – 4:00 pm
Workshop: Sharing No-till Knowledge & Microbial Insights
Olmsted County Public Works Service Center, 1188 50 St SE, Rochester, MN 55904, USA

Whitewater Gardens, The Olmsted SWCD, and The University of Minnesota Extension Olmsted County is offering a workshop called The Living Soil Roundtable: Sharing No-Till Knowledge and Microbial Insights. This workshop will offer practical information on how to read soil tests (both the Haney and the Soil Food Web), share findings from a recent NRCS SARE research project Optimizing No-Till Methods for a Direct-to-Market Organic Vegetable Farm on various mulching methods (deep composting, cut and carry, and living mulch), and provide plenty of time for questions and answers to discuss incorporating mulching in reduced till systems as a weed management practice and how to incorporate practices to increase soil microbiology. 


Participants are encouraged to bring soil or compost samples for viewing under a microscope and for analysis to detect microbial life. Class cost is free and will be held at Olmsted County Public Works Service Center (1188 50 St SE, Rochester, MN 55904) on December 18th from 1- 4 PM. 
 
Register at z.umn.edu/soilroundtable. Contact Shona Langseth at
shona.langseth@olmstedcounty.gov
 or 507-328-6905 with any questions.

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