Economic and Policy Drivers of Climate-Smart Soil Health Practices in the United States

Climate-smart soil health practices, such as cover crops and no-till, are considered to be key elements for climate change adaptation and mitigation in agriculture. We examine the empirical literature that provides data-driven evidence on the impact of cover crops and no-till on several economic variables of interest, such as yields, inputs, profits, risk, erosion, and water quality. In general, existing studies provide mixed evidence on the impacts of cover crops and no-till on these outcomes. Moreover, we discuss the empirical literature exploring the impact of economic and policy-related variables on adopting cover crops and no-till. We find that a number of studies examine the effects of federal payment programs on cover crop and no-till adoption, but more work is still needed to examine the effects of payments from state-level programs and carbon markets. We also identify promising research topics in the economics of climate-smart soil health practices.