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U.S. Farmers Embrace Conservation Practices

Conservation practices encouraged by the National Resources Conservation Service (NRCS) are used to improve soil health, reduce soil erosion, improve water quality and provide other natural resource benefits.

To maintain basic soil health, NRCS calls on farmers to keep the soil covered, disturb the soil minimally, keep a living cover that feeds the soil throughout the year, diversify crop systems on the soil through crop rotations and cover crops and incorporate livestock into the cropping system. Many of these practices contribute to carbon sequestration, as well as nutrient reduction and water quality/water quantity improvements.

Cover Crops

Cover crops like grasses, legumes and other plants can provide conservation cover if planted before grain crops are harvested or immediately after harvest. Depending on the cover crop mix planted, cover crops can reduce soil erosion and trap and sequester nutrients, like carbon, in the soil. Cover crops have also been used to improve soil biology, reduce weed competition, improve water infiltration and increase organic matter in soil. Cover crops are especially helpful when incorporating livestock grazing into a cropping system, providing an added nutrition source.

Roots and organic matter

Roots and organic matter from cover crops planted and growing before a new commercial crop like wheat is planted help improve soil health and reduce erosion. Cover crops are a growing conservation practice in the United States. 

Crop Rotation

Beyond the market incentives, reasons for planting different crops each year include improved soil health and enhanced biological diversity. In addition, crop rotation can reduce soil erosion and reduce pesticide costs, while also improving water quality. If a farmer incorporates a rotation of alfalfa and other legumes, there are fertilizer reduction benefits, as well.

No-till/ Strip-till/Conservation Tillage

Soil compaction is a constant challenge for farmers but limiting disturbances to the soil improves carbon retention and minimizes carbon emissions from soils. Avoiding full-width tillage, regardless of the depth or timing, if done long-term, can add organic matter to the soil as it decomposes and help to reduce soil compaction. Avoiding full-width tillage reduces soil erosion and protects water quality and can help keep water available for plants into the growing season after planting.

Nutrient Management

Precisely managing the source, rate, timing and placement of nutrients like nitrogen or animal manure as fertilizer can reduce the potential for waste or runoff of plant nutrients, which can improve soil conditions and overall crop production, prevent excess nitrogen runoff and reduce input costs.

Buffer Strips

These strips of grass, mixed grasses and legumes run along the contour of a farmed field to create a “buffer.” Buffer strips made up of native plants and grasses remove sediment, nutrients and crop protection products as they pass through, all while helping reduce soil erosion. Buffer strips can also provide habitats for pollinators and other beneficial insects.

Adoption of Conservation Practices

Taken only once every five years, the 2017 USDA Census of Agriculture is a survey-based count of U.S. farms and ranches and the people who operate them. The survey provides the most recent data regarding land use practices by the number of farms and the number of acres. In 2017, 41% of U.S. farmland involved conservation practices, an increase of 3% from 2012.

Figure 1 displays the percent of cropland acres utilizing each of the surveyed land-use conservation practices.

cropland acres

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Agricultural and Economic Briefing: USDA Reports, Global Tensions, and Market Reactions

Welcome back to our channel for a detailed update on key developments affecting the agricultural sector and broader economic landscape. Here's what's on the agenda today:

USDA Crop Production and WASDE Reports The USDA is set to release its monthly Crop Production and WASDE reports today at 11:00am CST. These reports will reflect the updated new crop US corn and soybean balance sheets, incorporating data from the June Planted Acreage report which showed a significant increase in corn acreage. While no major adjustments to US corn and soybean yield projections are expected, the focus will be on potential changes to global supply and demand. The reports are anticipated to bear a mostly bearish tone, especially concerning corn prices.

Geopolitical Developments in Ukraine Ukraine's recent detention of a foreign cargo ship on the Danube River, suspected of carrying stolen Ukrainian grain from Russian-occupied Crimea, has escalated tensions. This incident has stirred concerns about potential Russian retaliatory actions during Ukraine's crucial grain export season. Wheat futures saw a sharp rise following the news, highlighting the sensitive interplay between geopolitical events and commodity markets.

US Drought Conditions and Agricultural Impact Recent USDA drought monitor data indicates mixed conditions across the US Corn Belt and High Plains, with many areas receiving beneficial rainfall and experiencing cooler-than-average temperatures. However, conditions have worsened in parts of western Illinois and northeast Missouri. These evolving weather patterns are critical for crop development stages and will continue to influence market dynamics.

US Crop Export Sales Corn export sales showed an increase last week, with Colombia being the largest buyer. However, soybean sales were relatively weak, with the Netherlands as the primary buyer. The varied performance in crop export sales reflects shifting global demand and market conditions, which traders closely monitor for strategic insights.

Economic Indicators and Market Reactions In a surprising economic update, consumer prices declined for the first time in four years last month, with the CPI falling 0.1% in June. This decline, coupled with the slowest annual inflation increase since March 2021, has significantly influenced market expectations, with the probability of the Federal Reserve beginning rate cuts in September now standing at 89%.

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Join the Conversation: How do you think the upcoming USDA reports will impact market prices? What are your views on the ongoing geopolitical tensions and their potential effects on agricultural exports? Share your thoughts in the comments below. Your input is vital as we navigate these complex global scenarios.