A Regional Program for Production of Multiple Agricultural Feedstocks and Processing to Biofuels and Biobased Chemicals

Task 5.1. Estimation of production cost (Salassi, Falconer, Mark) Operational data obtained from the pilot facility will be incorporated into business and marketing models for targeted products. Economic viability of production of alternative feedstocks will be evaluated by a coordinated team of economists representing the South Central and South Eastern regions. Breakeven analysis will provide insights in required biomass market prices necessary to ensure availability and sustainability of energy cane and sweet sorghum feedstock production. The economic viability will be evaluated through the use of single enterprise commodity production cost budgeting and estimation techniques as well as linear programming whole-farm methods. Deliverables: Variable and fixed commodity production costs will be estimated for biofuel feedstock crops using commodity costs and returns budget generator software. Crop production practices, tillage options, input use, and harvest practices will be incorporated into the production cost projections. Estimated production costs and returns for feedstock crop will be evaluated within whole-farm linear programming models to evaluate the economic competitiveness and long-term viability of producing feedstock crops within existing crop production mixes in specified areas of the study region. Task 5.2. Breakeven economic analysis (Salassi, Falconer, Mark) A breakeven analysis will be carried out that will provide insights in required biomass market prices necessary to ensure availability and sustainability of feedstock production. One critical factor directly influencing the ability of the agricultural production sector to reliably supply sufficient quantities of feedstock to biorefineries is having long-run market prices of biomass which adequately cover total production costs. Deliverables: Breakeven prices for alternative biomass feedstock crops will be estimated based on recommended production practices and expected yields. These breakeven prices will serve as a benchmark for biomass market prices which producers would need to receive. Unlike feedstock prices for corn-ethanol production, there currently exists no established market mechanism for pricing biomass feedstock. Simulation analysis will be utilized to evaluate alternative biomass pricing mechanisms to determine those which provide adequate prices to growers to cover production costs and also respond appropriately to market conditions. Task 5.3. Economic viability analysis (Salassi, Falconer,Mark, Liechty) Deliverables: Operational data obtained from the pilot facility will be incorporated into business and marketing models for targeted products. Economic viability of production of alternative feedstocks will be evaluated by a coordinated team of economists representing various growing areas in the South Central and South Eastern regions. Breakeven analysis will provide insights in required biomass market prices necessary to ensure availability and sustainability of feedstock production. Specifically, within this task I am responsible for collecting data and developing models that are applicable for the Northern half of the Southeastern United States. Data collected and models developed will then be combined with data and models developed by collaborators.