Economic Evaluation of Regenerative Agriculture on Producer Profitability
Abstract
A recent shift in popularity of growing processes of traditional production agriculture has taken over. The new buzzword heard by producers is “regenerative agriculture.” Many believe these practices lead to increased soil health and lower the carbon footprint of humans. Conservation production efforts have been the priority of producers for well over 20 years. These practices include cutting back on the amount of erosion of the soil, enhancing soil porosity and infiltration, and an increase in natural soil health.
The practices that encompass regenerative agriculture are things such as: low/no tillage, growing cover crops, crop rotation, and lack of synthetic inputs to naturally revitalize soil.
The primary objective of this study was to evaluate the profitability of a producer if they utilized regenerative agriculture production practices. This was done through a partial budget analysis examining the investment costs to the producer as well as the impact increased soil health practices have on the operation’s bottom line, as well as yields of an operation. The study identified different levels of regenerative production and the economic impact to the producer.
The model result indicated that the highest probability of positive net cash income occurs with conventional agriculture. The exception to this is when the producer implements a no-tillage system and sells certain conventional equipment in this first year of production.
Citation
Hoelscher, Harlea Anne (2022). Economic Evaluation of Regenerative Agriculture on Producer Profitability. Master's thesis, Texas A&M University. Available electronically from https : / /hdl .handle .net /1969 .1 /198095.