FACTORS A FFECTING A DOPTION OF C OVER C ROPS AND I TS E FFECT ON N ITROGEN U SAGE AMONG US FARMERS O UTLINE Introduction Literature Review Data Methodology Results Conclusion I NTRODUCTION Changing environmental concern Changing agricultural practices Multifunctional agriculture - besides providing traditional products, agriculture provides many public goods and services I NTRODUCTION Technology adoption Water conservation and organic production practices Cover Cropping Increased yield Decrease Nitrogen (N) leakage L ITERATURE R EVIEW Olaf Erenstein (2003) and Ngouajio et al. (2002) U.M. Sainju et al (2002) and Larson et al. (2001) Cover crops help increase soil fertility and weed management constraints Use of cover crops can provide N to the next crop, conserve N concentration through mineralization and erosion, and reduce nitrogen fertilizer requirements Tonitto et al. (2005) Nitrate leaching was reduced by 40% in legumebased systems O BJECTIVE Identify determinants of cover crop adoption. Understand the change in the probability of adoption of cover crops by demographic, socioeconomic, and agronomic characteristics. Analyze how N management varies by farm relative to adoption or non-adoption of this technology. Estimate the change in N use for those who adopted and didn’t adopt cover crops by demographic, socio-economic, and agronomic characteristics. D ATA The survey conducted in 2009 with collaborators from 6 universities (NSF funded Project) 7 states in MRB – IL, IN, IA, OH, MI, MN, and WI 2 ERS regions (Northern Crescent – IL, IN, IA, OH; and Heartland – MI, MN, and WI) 233 organic & 212 conventional farmers Data for 2008 production year Organic farmers only in this analysis D ATA Variables Demographic – ERS region, age, farm income, education, experience; Socioeconomic - farm size, proportion of rented land, livestock, rented/not, cover crops, and information sources for N decision making – other farmers who adapted cover crops, other farmers relying on commercial N, organizations promoting cover crops, and organic fertilizer dealers; Agronomic – all CRP payments, slope (more than 6%), no till used, rotation with winter cover crops, tile drainage, M ETHODOLOGY Two-Stage model 6) Test of Endogeneity using Smith Blundell (1986) two-step procedure R ESULTS Estimation Results from Probit Model (first stage) Cover_crop Coefficient Standard Error Marginal Effect Op. age** 0.038486 0.01888 0.015301 Farm size (acres) 0.000367 0.000148 0.000146 Total farm inc. (in $100,000) ** -0.12938 0.053405 -0.05144 Op. education -0.07002 0.136631 -0.02784 Years of experience** -0.1314 0.053542 -0.05224 Expsq** 0.00226 0.001036 0.000899 Share of rented field -0.11276 0.114789 -0.04483 Region (Northern Crescent ) -0.42167 0.267113 -0.16671 Isds_cov* 0.232812 0.131134 0.092562 Isds_org 0.114494 0.116085 0.045521 Isds_ode* -0.21059 0.115494 -0.08373 All conservative payments* 0.54105 0.328359 0.209468 Slope -0.41399 0.355918 -0.1637 _cons -0.66191 1.19023 * - 10% significance, ** - 5% significance R ESULTS Estimation Results from Tobit Model (second stage) Marginal Effects Nitrogen Coefficient Standard Error Predicted values of cover crop** -168.504 79.5384 -0.45787 -68.1958 -96.3545 Op.’s education -24.1739 16.33009 -0.06569 -9.78348 -13.8232 Farm size (acres) 0.010749 0.008847 0.00003 0.00435 0.006147 Total farm inc. (in $100,000) * -6.16218 3.769868 -0.01674 -2.49391 -3.52367 Livestock* 56.18214 33.73149 0.153574 21.60315 30.12598 No-till used 248.0961 177.8572 0.421492 154.1898 200.1675 Tile drainage -41.0329 32.15755 -0.11175 -16.2936 -22.9094 Slope -44.1224 48.14568 -0.12105 -16.806 -23.4059 Rented** -75.7667 32.14944 -0.20624 -28.9987 -40.3042 Rotation with winter cover crops** 86.94256 41.66603 0.225794 38.07737 53.90144 Isds_com -7.76554 14.87927 -0.0211 -3.14282 -4.44051 _cons 168.9228 90.32249 * - 10% significance, ** - 5% significance Probability (%) Adopters Nonadopters C ONCLUSION Farmers’ age (+) and experience (-) had significants effect on cover crop adoption. Conservation payments positively affected the adoption of cover crops. Interacting with other farmers who were using cover crops increased the probability of adoption, but organic fertilizer dealers had negative effect on adoption. If the field is rented then the nitrogen use decreased by 29 and for adopters and 40 pounds/acre nonadopters. Cover crop adoption significantly decreased nitrogen use by farmers (68 and 96 pounds/acre for adopters and non-adopters respectively) T HANK Y OU Questions/Comments ? ? ?