Cover crop use is increasing on U.S. farms, but it remains low. The main reason for low adoption rates is the financial and management challenges of cover crops. Using a unique, field-level dataset from Illinois farms, we find that on average, cover crop fields have a lower operator and land return due to the additional seed, planting, and termination cost. Financial assistance is necessary for cover crop fields to be as profitable as non-cover crop fields. We also consider the carbon sequestration potential of cover crop fields using the Cool Farm Tool and estimate farmer carbon credit payments for cover crops.
