Net present value is the sum of each year's cash flows, discounted by a 2.5% inflation rate to account for money's decreasing value over time. See SARE's analysis of the economics of cover crops. A detailed look at the multi-year analysis is on the final worksheet of the spreadsheet.Ĭash crop yield benefits due to the cover crop are calculated in the multi-year analysis according to the yield increases calculated by Sustainable Agriculture Research and Education (SARE).The bottom of the worksheet calculates the multi-year economic impact, considering the net present value of both 5-year and 10-year spans. ![]() On the “Field Information” tab of the spreadsheet, the calculations on the right portray the economic impact of cover crops in year 1 of establishment.All costs are calculated on the per-acre level.The decision tool assumes a corn-soybean rotation and analyzes a single field. ![]() The tool provides both single-year analysis and a 5- and 10-year analysis. ![]() This tool is designed to help farmers analyze the potential cash flow over multiple years associated with adding cover crops to your corn-soybean rotation. Regardless of the reasons you may be considering cover crops, you need to be able to pay for them and ideally get a return on your investment.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |