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Abstract

Cover crops have been known to provide economic benefits and improve soil health but most farmers are reluctant to adopt them due to the uncertainty around its effects on yield and profitability. This study quantifies the risk of cover crop adoption for corn, peanut, and cotton rotation in Georgia evaluated at these scenarios; no cover crop, single species of Rye, and both single and multi-specie legumes added to Rye. From the results, it was realized that cover crop treatments were associated with lower yields as compared to the no cover crop treatment (Control). Risk averse farmers are likely to favor the Control treatment when considering the distribution of net returns. With the aid of Stochastic efficiency with respect to a function (SERF), the study shows that the most risk efficient cover crop treatment depends on the cash crop to be planted and the risk aversion level of the farmer.

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