Profitability of erosion control with cover crops in Carnuntum vineyards, Austria

• Carnuntum covers approximately 900 hectares of vineyards with an average farm size of 6.2 hectares, larger than Spanish counterparts. The region features loess soils on plains and gravel on slopes. 
• Climate conditions bring potential for increased water erosion intensity due to climate change projections. 
• The production model assumes moderate slopes with trellis systems and no irrigation. Winegrowers benefit from higher grape prices (€0.90 per kilogram) through direct marketing and own wine production, generating added value compared to cooperative-sold grapes.

To compare the profitability and cost-effectiveness of three soil management scenarios (conventional tillage, temporary cover crops, permanent cover crops) in Carnuntum vineyards, incorporating both private on-site erosion costs borne by farmers and social off-site costs borne by society, to inform policy decisions about agri-environmental subsidies for erosion control.

• Grape prices of €0.90 per kilogram result in better economic situation than Spanish counterparts, though still not fully competitive with Social Cost-Benefit ratio of 1.22.
• Minimum price of €1.10 per kilogram would achieve competitiveness. 
• Cover crops add 1.8% (temporary) to 2.7% (permanent) to variable costs: temporary cover crops add €122 per hectare, permanent cover crops add €189 per hectare. 
• Agri-Environment Measure payments of €100-800 per hectare for erosion control are available depending on slope, with €200 per hectare paid for permanent cover crops on moderate slopes. This covers the additional management costs. 
• From a private perspective alone, management change is not profitable without subsidies, but winegrowers can achieve private profitability (Private Cost-Benefit ratio of 0.95) with subsidies included.

Erosion rates declined continuously with increased vegetation cover usage: conventional tillage produced 9.7 tonnes per hectare per year, temporary cover crops reduced this to 4.7 tonnes per hectare per year, and permanent cover crops achieved 1.4 tonnes per hectare per year. This translates to social erosion cost savings of €483 per hectare annually for permanent cover crops when considering off-site damages. 

From a social perspective, cover crop management is cost-effective in both regions. Environmental benefits include improved soil organic carbon, aggregate stability, nutrient retention (60% reduction in loss), and enhanced biodiversity and ecosystem services.

• Field surveys conducted across sixteen vineyards (eight for each of the two most common soil management techniques) to collect topographic, soil, cover and management information. 
• Daily climate data for 16 years (2000-2015) obtained from nearby weather stations. 
• The ORUSCAL tool calibrated using strategy incorporating soil moisture subfactor to assess erosion risk under different management scenarios. 
• Policy Analysis Matrix constructed using gross margin calculator data and farm budgets adjusted for inflation to 2016 values, incorporating subsidies, input-output prices and monetised erosion costs. 
• Sensitivity analysis conducted on output prices, labour costs, variable machinery costs and erosion costs.

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Austrian vineyard analysis finds permanent cover crops cost-effective

Carnuntum is a small Protected Designation of Origin wine region in Eastern Austria, located near the capital Vienna. With approximately 900 hectares under vine and about 150 winegrowers, the region produces 43,000 hectolitres of wine annually, roughly half white and half red. Unlike many Mediterranean wine regions, Carnuntum shows a clear tendency towards cover crop usage, though bare soil management is still observed.

The region is characterised by a Pannonian climate with cold winters and dry, warm summers, averaging 11.1°C annually with 636 mm of precipitation. Predominant soil types include loess and gravel on slopes. Due to touristic attractiveness and proximity to Vienna, the region is oriented towards direct marketing, with many winegrowers producing their own wine and generating added value through bottling and branding. This contrasts with regions where grapes are sold to cooperatives.

Research conducted through the VineDivers project evaluated soil management scenarios using the ORUSCAL erosion model and Policy Analysis Matrix, comparing conventional tillage (bare soil), temporary cover crops in alternating inter-rows with tillage in other rows, and permanent cover crops in every inter-row throughout the year. The study incorporated private on-site costs borne by farmers and social off-site costs including infrastructure damage and environmental degradation.