Canadian Farmers Boost Profits and Soil Health with Crop Rotation

Canadian prairie farmers have the opportunity to enhance their profitability and contribute positively to the environment through strategic crop rotation. Research from the University of Alberta indicates that specific crop rotations can significantly increase the amount of organic carbon stored in soil, ultimately leading to higher profits while reducing harmful carbon dioxide emissions.

Agricultural economist Devin Serfas, who serves as the RDAR Chair in Applied Agricultural Economics and Risk Management at the University, conducted a study focused on Saskatchewan farmland. He examined the long-term effects of various crop types on soil organic carbon (SOC) levels, crop yield, and profitability, as well as the environmental benefits associated with improved SOC.

To assess the impact of different crop practices, Serfas utilized data from the Saskatchewan Crop Insurance Corporation, covering insured fields over the past 20 years. By combining this information with weather, plant, and soil science models, he estimated the “shadow value” of SOC. The findings revealed a significant opportunity for farmers to enhance yields and profits, particularly in soils with lower SOC levels, such as brown soil, which is typically drier and less fertile.

Serfas conducted simulations to predict SOC levels and yield responses over time, using both common and conventional crop rotations. The analysis highlighted that farmers could achieve much higher long-term average profits with an optimized rotation. This rotation involves planting canola one year, followed by spring wheat, field peas, and then spring wheat again, repeating this cycle every four years.

Long-Term Benefits for Farmers and the Environment

The research projections indicated that adopting this specific crop rotation could lead to substantial profit increases over time. Farmers in brown soil zones might see an average profit rise of 27.5 percent, with increases of 8.2 percent in dark brown soil areas and 4.4 percent in black and grey soils. These profit enhancements are directly linked to increased carbon storage in the soil over a period of approximately 32 years, or eight four-year farming cycles.

Beyond the immediate financial benefits for farmers, the environmental advantages are equally significant. Serfas estimated that transitioning to the recommended crop rotation could yield societal benefits valued at approximately $108 billion from 2023 to 2055, based on a social cost of carbon of US$185 per tonne of CO2. This underscores the considerable environmental impact stemming from improved soil health and higher SOC levels.

Serfas notes that adopting effective crop rotations is not without challenges. Farmers often face the dilemma of wanting to preserve soil health while also ensuring immediate financial returns. “Farmers generally want to use good crop rotations, but they also want to pay their bills,” he explained. The study provides a financial perspective on the long-term benefits of crop rotation, highlighting that farmers could see profits increase by up to 27 percent in regions with relatively lower SOC.

Encouraging Sustainable Practices

The findings of this research could also have implications for family farms aiming to maintain productive soil for future generations. Serfas suggests that intergenerational farms may find greater motivation to adopt sustainable practices that benefit both their financial future and the environment.

While this study is based on Saskatchewan farmland, it carries potential relevance for other Canadian prairie crop producers in areas with similar climatic conditions, crop yields, and commodity prices. Serfas believes that the insights gained from this research could advocate for government programs offering incentives for farmers to adopt environmentally friendly crop rotations.

The study received funding from the Saskatchewan Wheat Development Commission and the University of California Giannini Foundation of Agricultural Economics. By emphasizing the economic and environmental benefits of crop rotation, this research could pave the way for more sustainable agricultural practices in Canada and beyond.