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An Evaluation of Tennessee Soybean Growers’ Views on a New Generation Cooperative to Produce Biodiesel

  • Jensen, Kimberly L.
  • English, Burton C.
  • Menard, R. Jamey
  • Zhang, Yu

Substituting petroleum diesel with biodiesel could decrease air emissions, reduce reliance on foreign oil, and help expand markets for U.S. farmers. Soybean producers can potentially capture this value-added by forward integrating the processing of soybeans into biodiesel via a New Generation Cooperative (NGC). Using probit analysis, this study examines factors influencing soybean producers’ willingness to participate in an NGC to produce biodiesel. Tobit analysis is used to examine the factors influencing the number of shares the soybean producer would be willing to purchase. Survey results indicate that over 70% of the soybean producers in the study group are interested in investing in an NGC to produce biodiesel. Among those producers willing to participate, the average number of shares they would purchase was just under 3,460.

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File URL: http://purl.umn.edu/59400
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Article provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.

Volume (Year): 22 (2004)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:ags:jloagb:59400
Contact details of provider: Postal: 301 Conner Hall, University of Georgia, Athens, GA 30602-7509
Web page: http://www.agecon.uga.edu/~jab/
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