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Risk and Return for Bioenergy Crops under Alternative Contracting Arrangements

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  • Larson, James A.
  • English, Burton C.
  • He, Lixia

Abstract

This study evaluated the potential to supply biomass feedstocks under alternative contract arrangements for a northwest Tennessee 2,400 acre grain farm. The four potential types of contracts analyzed in this study offer different levels of biomass price, yield, and production cost risk sharing between the representative farm and the processor.

Suggested Citation

  • Larson, James A. & English, Burton C. & He, Lixia, 2008. "Risk and Return for Bioenergy Crops under Alternative Contracting Arrangements," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6842, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeaed:6842
    DOI: 10.22004/ag.econ.6842
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    References listed on IDEAS

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    1. McCarl, Bruce A. & Bessler, David A., 1989. "Estimating An Upper Bound On The Pratt Risk A Version Coefficient When The Utility Function Is Unknown," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 1-8, April.
    2. Epplin, Francis M. & Clark, Christopher D. & Roberts, Roland K. & Hwang, Seonghuyk, 2007. "AJAE Appendix: Challenges to the Development of a Dedicated Energy Crop," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(5), pages 1-13, December.
    3. Paulson, Nicholas D. & Babcock, Bruce A., 2007. "The Effects of Uncertainty and Contract Structure in Specialty Grain Markets," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9856, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Dillon, Carl R., 1999. "Production Practice Alternatives for Income and Suitable Field Day Risk Management," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 31(2), pages 247-261, August.
    5. Larson, James A. & English, Burton C. & Hellwinckel, Chad M. & Torre Ugarte, Daniel de la & Walsh, Marie E., 2005. "A Farm-Level Evaluation of Conditions Under Which Farmers Will Supply Biomass Feedstocks for Energy Production," 2005 Annual meeting, July 24-27, Providence, RI 19161, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Kiniry, James R. & Williams, J. R. & Gassman, Philip W. & Debacke, P., 1992. "General, Process-Oriented Model for Two Competing Plant Species (A)," Staff General Research Papers Archive 483, Iowa State University, Department of Economics.
    7. Dillon, Carl R., 1999. "Production Practice Alternatives For Income And Suitable Field Day Risk Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(2), pages 1-15, August.
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    Cited by:

    1. Altman, Ira & Bergtold, Jason & Sanders, Dwight & Johnson, Tom, 2015. "Willingness to supply biomass for bioenergy production: A random parameter truncated analysis," Energy Economics, Elsevier, vol. 47(C), pages 1-10.
    2. Griffith, Andrew P. & Larson, James A. & English, Burton C. & McLemore, Dan L., 2009. "Stochastic Dominance Analysis of Bioenergy Crops as a Production Alternative on an East Tennessee Beef and Crop Farm," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46811, Southern Agricultural Economics Association.
    3. Cheng, Lingfeng & Anderson, C. Lindsay, 2016. "Financial sustainability for a lignocellulosic biorefinery under carbon constraints and price downside risk," Applied Energy, Elsevier, vol. 177(C), pages 98-107.
    4. Lynes, Melissa K. & Bergtold, Jason S. & Williams, Jeffery R. & Fewell, Jason E., 2012. "Determining Farmers’ Willingness-To-Grow Cellulosic Biofuel Feedstocks on Agricultural Land," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124777, Agricultural and Applied Economics Association.
    5. Lynes, Melissa K. & Bergtold, Jason S. & Williams, Jeffery R. & Fewell, Jason E., 2016. "Willingness of Kansas farm managers to produce alternative cellulosic biofuel feedstocks: An analysis of adoption and initial acreage allocation," Energy Economics, Elsevier, vol. 59(C), pages 336-348.

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    Keywords

    Farm Management; Resource /Energy Economics and Policy;

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