Economic optimization of sustainable soil management: a Dutch case study

Abstract

Soil quality is pivotal for crop productivity and the environmental quality of agricultural ecosystems. Achieving sufficient yearly income and long-term farm continuity are key goals for farmers, making sustainable soil management an economic challenge. Existing bio-economic models often inadequately address soil quality. In this study, we apply the novel FARManalytics model, which integrates chemical, physical, and biological indicators of soil quality indicator, quantitative rules on how these indicators respond to farmers’ production management over time, and an economic calculation framework that accurately calculates the contribution of production management decisions towards farm income. This is the first study applying this model on existing arable farms. FARManalytics optimizes crop rotation design, cover crops, manure and fertilizer application and crop residue management. Nine Dutch arable farms were analyzed with a high variation in farm size, soil type, and cultivated crops. First, we assessed farm differences in soil quality and farm economics. Second, we optimized production management to maximize farm income while meeting soil quality targets using farm-specific scenarios. Third, we explored the impact of recent policy measures to preserve water quality and to increase the contribution of local protein production. The results show that the case farms already perform well regarding soil quality, with 75% of the soil quality indicators above critical levels. The main soil quality bottlenecks are subsoil compaction and soil organic matter input. We show that even in front-runner farms, bio-economic modeling with FARManalytics substantially improves economic performance while increasing soil quality. We found that farm income could be increased by up to €704 ha⁻¹ year⁻¹ while meeting soil quality targets. Additionally, we show that to anticipate on stricter water quality regulation and market shift for protein crops, FARManalytics is able to provide alternative production management strategies that ensure the highest farm income while preserving soil quality for a set of heterogenous farms.