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The Economic Impacts of Bioenergy Crop Production on U.S. Crop Production

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Author Info

  • Torre Ugarte, Daniel de la
  • Walsh, Marie E.
  • Shapouri, Hosein
  • Slinsky, Stephen P.

Abstract

In response to energy security concerns, alternative energy programs such as biomass energy systems are being developed to provide energy in the 21st century. For the biomass industry to expand, a variety of feedstocks will need to be utilized. Large scale production of bioenergy crops could have significant impacts on the United States agricultural sector in terms of quantities, prices and production location of traditional crops as well as farm income. Though a number of scenarios were examined to study the impact of bioenergy crop production on the agricultural sector, two cropland scenarios are presented in this report. Under the wildlife management scenario, the analysis indicates that, at $30/dry ton (dt) for switchgrass, $31.74/dt for willow and $32.90 for poplar, an estimated 19.4 million acres of cropland (8.2 million from CRP) could be used to produce 96 million dry tons of bioenergy crops annually at a profit greater than the profit created by existing uses for the land. In this scenario, traditional crop prices increase from 3 percent to 9 percent (depending on crop) and net farm income increases by $2.8 billion annually. At $40/dt of switchgrass, $42.32/dt for willow and $43.87/dt for poplar and assuming the production management scenario, an estimated 41.9 million acres (12.9 million from CRP) could be used to produce 188 million dry tons of biomass annually. Under this scenario, traditional crop prices increase by 8 to 14 percent and net farm income increases by $6 billion annually.

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Bibliographic Info

Paper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 33997.

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Date of creation: 2003
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Handle: RePEc:ags:uerser:33997

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Related research

Keywords: alternative crops; bioenergy crops; biomass; Conservation Reserve Program; crop acreage shifts; crop budgeting; economic feasibility; economic impact; hybrid poplars; hybrid willow; POLYSYS; switchgrass; Crop Production/Industries; Resource /Energy Economics and Policy;

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  1. Elitzak, Howard, 1999. "Food Cost Review, 1950-97," Agricultural Economics Reports 34053, United States Department of Agriculture, Economic Research Service.
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Cited by:
  1. Jacinto F. Fabiosa & John C. Beghin & Fengxia Dong & Amani Elobeid & Simla Tokgoz & Tun-Hsiang (Edward) Yu, 2009. "Land Allocation Effects of the Global Ethanol Surge: Predictions from the International FAPRI Model," Food and Agricultural Policy Research Institute (FAPRI) Publications 09-wp488, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  2. Frondel, Manuel & Peters, Jorg, 2007. "Biodiesel: A new Oildorado?," Energy Policy, Elsevier, vol. 35(3), pages 1675-1684, March.
  3. Gehlhar, Mark J. & Somwaru, Agapi & Somwaru, Agapi, 2010. "Effects of Increased Biofuels on the U.S. Economy in 2022," Economic Research Report 96758, United States Department of Agriculture, Economic Research Service.
  4. Mooney, Daniel F. & Roberts, Roland K. & English, Burton C. & Tyler, Donald D. & Larson, James A., 2008. "Switchgrass Production in Marginal Environments: A Comparative Economic Analysis across Four West Tennessee Landscapes," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6403, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Doering, Otto C., III, 2005. "Agricultural/Renewable Contributions to U.S. Electricity Usage," Energy from Agriculture, Energy from Agriculture: New Technologies, Innovative Programs and Success Stories, December 14-15, 2005, St. Louis, Missouri 7626, Farm Foundation.
  6. Sobowale, Flakkeh & Dicks, Michael R. & Adam, Brian D. & Campiche, Jody L., 2012. "Impact of United States Corn-Based Ethanol Production on Land Use," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119800, Southern Agricultural Economics Association.
  7. Parker, Nathan C & Ogden, Joan & Fan, Yueyue, 2009. "The role of biomass in California's hydrogen economy," Institute of Transportation Studies, Working Paper Series qt8412751s, Institute of Transportation Studies, UC Davis.
  8. Gedikoglu, Haluk, 2012. "Impact of Off-Farm Employment on Farmers’ Willingness to Grow Switchgrass and Miscanthus," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119663, Southern Agricultural Economics Association.
  9. Walsh, Marie E., 2005. "Non-Traditional Sources of Biomass Feedstocks," Energy from Agriculture, Energy from Agriculture: New Technologies, Innovative Programs and Success Stories, December 14-15, 2005, St. Louis, Missouri 7625, Farm Foundation.
  10. Huang, Haixiao & Khanna, Madhu & Yang, Xi, 2011. "Cost of Maintaining CRP in Presence of Biofuels," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103829, Agricultural and Applied Economics Association.
  11. English, Burton C. & Torre Ugarte, Daniel de la & Walsh, Marie E. & Hellwinckel, Chad M. & Menard, R. Jamey, 2006. "Economic Competitiveness of Bioenergy Production and Effects on Agriculture of the Southern Region," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(02), August.
  12. Rosa, Franco & Sossai, E. & Vasciaveo, Michela, 2010. "Planning of the Agrifood supply chain: a case study for the FVG region," 116th Seminar, October 27-30, 2010, Parma, Italy 95226, European Association of Agricultural Economists.
  13. Eidman, Vernon R., 2005. "Agriculture's Role in Energy Production: Current Levels and Future Prospects," Energy from Agriculture, Energy from Agriculture: New Technologies, Innovative Programs and Success Stories, December 14-15, 2005, St. Louis, Missouri 7628, Farm Foundation.
  14. Sobowale, Folakemi & Dicks, Michael R. & Campiche, Jody L., 2011. "Impact of United States Corn-based Ethanol Production on Land Use," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98854, Southern Agricultural Economics Association.
  15. Parker, Nathan C, 2007. "Optimizing the Design of Biomass Hydrogen Supply Chains Using Real-World Spatial Distributions: A Case Study Using California Rice Straw," Institute of Transportation Studies, Working Paper Series qt8sp9n37c, Institute of Transportation Studies, UC Davis.
  16. Parker, Nathan, 2007. "Optimizing the Design of Biomass Hydrogen Supply ChainsUsing Real-World Spatial Distributions: A Case Study Using California Rice Straw," Institute of Transportation Studies, Working Paper Series qt5kr728sp, Institute of Transportation Studies, UC Davis.
  17. Duncan, Marvin R., 2001. "Bioproducts And Bioenergy: New Opportunities For Farmers And For Rural America," Proceedings: 2001 Regional Committee NC-221, October 1-2, 2001, McLean, Virginia 132385, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
  18. Rosburg, Alicia & Miranowski, John & Jacobs, Keri, 2013. "Cellulosic Biofuel Potential Under Land Constraints: Locations, Plant Sizes and Feedstock Supply Costs," Staff General Research Papers 36358, Iowa State University, Department of Economics.
  19. Rosburg, Alicia & Miranowski, John & Jacobs, Keri, 2013. "Cellulosic Biofuel Supply with Heterogeneous Biomass Suppliers: An Application to Switchgrass-based Ethanol," Staff General Research Papers 36359, Iowa State University, Department of Economics.
  20. 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).

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