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Economic Feasibility of Ethanol Production from Sweet Sorghum Juice in Texas

Author

Listed:
  • Morris, Brittany D.
  • Richardson, James W.
  • Frosch, Brian J.
  • Outlaw, Joe L.
  • Rooney, William L.

Abstract

The economic feasibility of producing ethanol from sweet sorghum juice is projected using Monte Carlo simulation models to estimate the price ethanol plants will likely have to pay for sweet sorghum and the uncertain returns for ethanol plants. Ethanol plants in high yielding regions will likely generate returns on assets of 11%-12% and in low yield areas the returns on assets will be less than 10%.

Suggested Citation

  • Morris, Brittany D. & Richardson, James W. & Frosch, Brian J. & Outlaw, Joe L. & Rooney, William L., 2009. "Economic Feasibility of Ethanol Production from Sweet Sorghum Juice in Texas," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46852, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:46852
    DOI: 10.22004/ag.econ.46852
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    References listed on IDEAS

    as
    1. Richardson, James W. & Herbst, Brian K. & Outlaw, Joe L. & Gill, Robert Chope, II, 2007. "Including Risk in Economic Feasibility Analyses: The Case of Ethanol Production in Texas," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 25(2), pages 1-18.
    2. Outlaw, Joe L. & Ribera, Luis A. & Richardson, James W. & Silva, Jorge da & Bryant, Henry & Klose, Steven L., 2007. "Economics of Sugar-Based Ethanol Production and Related Policy Issues," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 39(2), pages 357-363, August.
    3. J. Brian Hardaker & James W. Richardson & Gudbrand Lien & Keith D. Schumann, 2004. "Stochastic efficiency analysis with risk aversion bounds: a simplified approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 253-270, June.
    4. Richardson, James W. & Klose, Steven L. & Gray, Allan W., 2000. "An Applied Procedure For Estimating And Simulating Multivariate Empirical (Mve) Probability Distributions In Farm-Level Risk Assessment And Policy Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(2), pages 1-17, August.
    5. Klose, Steven L. & Anderson, David P. & Outlaw, Joe L. & Herbst, Brian K. & Richardson, James W., 2003. "The Feasibility Of Ethanol Production In Texas," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35181, Southern Agricultural Economics Association.
    6. Ben C. French, 1960. "Some Considerations in Estimating Assembly Cost Functions for Agricultural Processing Operations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 42(4), pages 767-778.
    7. Richardson, James W. & Lemmer, Wessel J. & Outlaw, Joe L., 2007. "Bio-ethanol Production from Wheat in the Winter Rainfall Region of South Africa: A Quantitative Risk Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-24.
    8. Richardson, James W. & Herbst, Brian K. & Outlaw, Joe L. & Anderson, David P. & Klose, Steven L. & Gill, Robert Chope, II, 2006. "Risk Assessment in Economic Feasibility Analysis: The Case of Ethanol Production in Texas," Research Reports 42095, Texas A&M University, Agricultural and Food Policy Center.
    9. Shapouri, Hosein & Salassi, Michael, 2006. "The Economic Feasibility of Ethanol Production from Sugar in the United States," Miscellaneous Publications 322769, United States Department of Agriculture, Economic Research Service.
    10. Ribera, Luis A. & Outlaw, Joe L. & Richardson, James W. & Silva, Jorge A. da & Bryant, Henry L., 2007. "Mitigating the Fuel and Feed Effects of Increased Ethanol Production Utilizing Sugarcane," Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri 313700, Farm Foundation.
    11. Lawrence D. Mapemba & Francis M. Epplin & Charles M. Taliaferro & Raymond L. Huhnke, 2007. "Biorefinery Feedstock Production on Conservation Reserve Program Land," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 227-246.
    12. repec:ags:joaaec:v:32:y:2000:i:2:p:299-315 is not listed on IDEAS
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    Keywords

    Agribusiness; Agricultural Finance; Crop Production/Industries; Farm Management; Risk and Uncertainty;
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