21 Dec switchgrass price per ton
This base scenario assumes switchgrass is priced at $65 per ton and hay priced at $75 per ton (both at standard moisture conditions). Six cellulosic biorefineries co-funded by the U.S. Department of Energy also are in the works throughout the U.S. and should be completed over the next few years. user the ability to insert the current price per dry ton of switchgrass at the plant gate. It is available online at http://dx.doi.org/10.1007/s12155-008-9005-y. At an assumed farm-gate price of $55 per dry ton for a mature yield of 7 tons per acre, annual revenue would be $385 per acre per year. 2011-68005-30411 from the USDA National Institute of Food and Agriculture. The Market value of Switchgrass Pellet Switchgrass in particular has attracted attention as a fiber source for bio fuel since it will typically result in lower ash content than other fiber sources. These costs include seeding, chemicals, land rent, and reseeding as needed. 2013. CenUSA is supported by Agriculture and Food Research InitiativeÂ Competitive Grant no. The suggested price per ton is $75.00 USD. The five farmers with the lowest costs had production costs of less than $50 per ton, which should be achievable by other farmers as they gain production experience, Perrin said. 2010. Switchgrass is a 3' to 7'+ tall native perennial bunch grass and is one of our most important tall warm season grasses. James, Laura K., Scott M. Swinton, and Kurt D. Thelen. Switchgrass is a warm season, native bunch grass. 3.1.2 Economics of Switchgrass preparation In the Renewable Fuel Standard (RFS2) legislation passed in 2007, Congress escalated mandates for the amounts of biofuels to be used in transportation fuel sold in the U.S. There is also an ethanol plant in Upton, Wyo., which produces cellulosic ethanol from wood waste. Profitability Analysis of Cellulosic Energy Crops Compared with Corn.Â, Khanna, Madhu, Atul Jain and Anthony Oliver. Perrin, Richard, Kenneth Vogel, Marty Schmer, and Rob Mitchell. In the study, two farmers with previous experience growing switchgrass had the lowest production costs of $39 per ton. It prefers Lowland, moist sites, but is adapted to a wide range of soils and climates including sand. Debnath, et al, estimated that these intangible benefits could raise the value of a switchgrass crop by $13 to $46 per ton relative to intangible benefits from no-till wheat. The resulting prices for nitrogen (N), phosphorus (P), and potassium (K) were Estimating production cost at $50 per ton and assuming a conversion efficiency of 80 to 90 gallons per ton, the cost of switchgrass feedstock delivered to the refinery would be equivalent to 58 cents to 66 cents per gallon of ethanol. Seeds per Pound: 259,000. Switchgrass as a cellulosic fuel feedstock will also face competition from other cellulosic sources, such as wood processing waste. It has adapted regionally to widely differing soils, rainfall, and climate conditions over most of the US. At the switchgrass price of $54/ton, the shadow price of land is about $6/acre in region 18, and is almost zero in region 14A. We do not yet know what refineries will pay for switchgrass as cellulosic feedstock. This is despite the fact that advanced biofuels such as cellulosic ethanol (derived from crop residues, grasses, and trees) are mandated to exceed the amount of corn ethanol produced. In these situations, marginal substitution of switchgrass for coal might be cheaper than substitution of other renewable fuels. That study also found greenhouse gas emissions from cellulosic ethanol made from switchgrass were 94 percent lower than estimated greenhouse gas emissions from gasoline production. Hong. ?Currently, there is not an exact figure available on how much it actually costs to produce ethanol from switchgrass because that industry is not really born yet.? These benefits include reduced soil erosion and fertilizer runoff, increased soil organic carbon that retains moisture and maintains fertility, and wildlife habitat. The switchgrass price per ton is considered by two life cycle stages: (1) switchgrass cultivation and harvesting and (2) transportation. Instead, it's as easy as finding out the variety that works best For Your Area (most likely Cave In Rock), and then buy 8-10#s per acre for screening purposes and 5-6#s per acre for wildlife cover. Note that it is not yet clear exactly how much of the mandated cellulosic biofuel use the government will eventually require. CenUSA Bioenergy is a coordinated research and education effort investigating the creation of a regional system in the Central US for producing advanced transportation fuels from perennial grasses on land that is either unsuitableÂ or marginal for row crop production. 2013. •Extrapolated farm gate costs (10 yr) were $54 ton-1. The technology to convert cellulosic materials to ethanol on a commercial scale has been difficult to develop. 2013. Increasing land rents will significantly increase production costs because they account for nearly half of all production costs. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture. If we assume expected yields of 2.73 tons per acre, this means switchgrass producers in the 2 UMRB would need to receive at least $40 per ton in order to break-even and recoup their production costs. The fields used in the study were in Nebraska near Atkinson, Crofton, Lawrence and Douglas; in South Dakota near Highmore, Bristol, Huron and Ethan; and in North Dakota near Streeter and Munich. All switchgrass grown for biomass is likely to be grown under contract with biorefineries because these plants will require a steady supply of large amounts of feedstock.Â, The economics of switchgrass for bioenergy are influenced not only by feedstock prices and production costs, but also by competing uses and products. Co-firing in steam boilers, usually with coal. The breakeven farm-gate price for switchgrass ranged from $56 per ton for the two lowest profitability groups to over $94 per ton for the most profitable producers. Guretzky, J. At a yield of 3.5 tons of dry matter (DM) per acre (a reasonable expectation in much of the Upper Midwest), this brings total cost at the farm gate to about $65 per ton of DM. ?Cost beyond the farm gate is more speculative,? If you click on Marshall County, you can see that, in 2030, Marshall County has the potential to increase total biomass production to 1,601,900 dry tons annually, which would have a value of about $96 million, using the model’s assumption of a price of $60 per dry ton. The joint U.S. Department of Agriculture-Agricultural Research Service and Institute of Agriculture and Natural Resources study will be published in this month?s BioEnergy Research. Wetland: UPL, FACW. Switchgrass production costs ranged from just over $40 per ton on marginal soils to $34.80 per ton on highly productive soils. Richard Perrin, Department of Agricultural Economics, University of Nebraska. However the RFS2 and the price of petroleum have the greatest potential impact on the economic prospects for growing switchgrass, and these two factors can certainly change the economic balance in favor of switchgrass for bioenergy. Estimating production cost at $50 per ton and assuming a conversion efficiency of 80 to 90 gallons per ton, the cost of switchgrass feedstock delivered to the refinery would be equivalent to 58 cents to 66 cents per gallon of ethanol. They were also asked for a base bid in dollars per acre plus an incentive payment in dollars per dry ton of switchgrass produced, assuming an average yield of 5.5 tons per acre. Â Lazarus, William F. 2010. Cellulosic fuels in general will not be competitive with corn ethanol due to higher production and refining costs. Liebig, et al, measured increases in soil carbon sequestration under switchgrass and found an average increase of 1.1 Mg C/ha, which at the value the U.S. Environmental Protection Agency places on carbon emission reductions, would be worth $54 per acre (around $15 per ton). Conversion Corn Price Price; 1 Bushel ≈ 0,035 m³ Corn Price Per 1 m³ 122.59 USD 1 Bushel ≈ 35,239 Liter Corn Price Per 1 Liter Generally, on marginal cropland that can produce corn at yields higher than 60 to 70 bushels per acre, corn is likely to be more profitable. Helsel said 1 ton of Switchgrass hay produced the same amount of energy as 100 gallons of fuel oil. Switchgrass offers additional environmental benefits such as helping to improve water quality and wildlife habitat, helping to reduce carbon emissions through carbon sequestration in the soil, and serving as a replacement for fossil fuel… It is widely assumed that switchgrass for biofuel would most likely be produced on land that is marginal for row-crop production. 2011. One-time switchgrass establishment costs are amortized at an interest rate of 8% over the Table 1. There is no revenue in the first year. Soil Carbon Storage by Switchgrass Grown for Bioenergy. $ 0.27 43 11.74 Fertilizer Application acre $ 4.14 1 4.14 These analyses indicate that switchgrass would compete successfully with conventional crops on approximately 98% of the 3.9 M ha that would be available at a price of $38.5/Mg ($35/ton) for switchgrass (and identical prices per unit of energy content for the two other crops). However, switchgrass bales will not be price-competitive with coal, except perhaps in areas that have renewable-fuel portfolio mandate requirements. If the RFS2 mandate is fully enforced, refiners might pay $150 per ton or more if corn stover (a cheaper cellulosic feedstock) is not available. But do the economics justify that? For example, given the expenditures above, an average yield of 2 tons per acre would result in a cost above $110 per ton; at 6 tons per acre, the production cost would fall to about $38 per ton.Â New varieties are being developed that may provide higher yields than our estimate of 3.5 tons of DM. The Energy Independence and Security Act of 2007 mandates the use of 100 million gallons of cellulosic biofuel by 2010, possibly more than will be produced, Perrin said. Cellulose first must be broken down into starch and sugar before it can be fermented into alcohol. These alternative feedstocks will limit the amount that processors are willing to pay for switchgrass. At current prices and technology, switchgrass for cellulosic ethanol is not a strong free market contender in most cases. A number of cellulosic ethanol plants are in operation, including one in York, Neb., but most are pilot-scale plants. For more information about the study, see the March 12 edition of Cornhusker Economics at www.agecon.unl.edu/Cornhuskereconomics.html.Rapid City Journal, http://dx.doi.org/10.1007/s12155-008-9005-y, www.agecon.unl.edu/Cornhuskereconomics.html, Making carbon trading globally legitimate: the road show has begun. ton including land costs. The height and extensive root system of Switchgrass can cause it to become dominant over time in mixtures with other natives. However, on land that cannot consistently produce at least 60 bushels per acre or so, according to our calculations, switchgrass could be more profitable. It is very winter-hardy and drought resistant. *It's not about fancy blends and deer cover mixes! Costs of production per ton are found to decline as yield increases; a four-fold increase in switchgrass yield would reduce per unit costs by more than half while Bullard estimated that a 50% increase in the yield of miscanthus could reduce per unit costs by about 25% . Pellets for fuel. Research Summary: Triploid Hybrids of Shrub Willow Yield More Biomass Than Diploids and Tetraploids, http://www.extension.iastate.edu/agdm/crops/html/a1-22.html, http://faculty.apec.umn.edu/wlazarus/documents/cropbud.pdf, http://digitalcommons.unl.edu/ageconfacpub/37/, USDA-ARS Northern Great Plains Research Lab, USDA National Institute of Food and Agriculture, Energy Answers for the Beginning Farmer and Rancher, NEWBio Team Defines Human Systems Driving the Bioeconomy Transition, NEWBio Harvest, Preprocessing, and Logistics Team Optimizes Biomass Supply Chain Processes, NEWBio Feedstock Improvement Team Breeds Better Switchgrass and Willow for the Bioeconomy. 2007. There are other potential markets for switchgrass as an energy crop: Growing switchgrass for biofuel can provide ecosystem services benefits that do not have a direct cash valueâat least in todayâs marketplace. A comparison across harvest systems indicates that for most of the species, the double harvest system more than doubles the optimum N application. There are several pathways for converting cellulosic feedstocks such as switchgrass into bioenergy products, including hydrolysis and fermentation, pyrolysis, and gasification. Brown, Tristan R., Rajeeva Thilakaratne, Robert C. Brown and Guiping Hu. Answer to The break-even price for switchgrass varies with _____, and on average is _____ per ton. Partition of Estimated Harvest Cost ($/ton at 15% moisture) Nutrient replacement is the largest component, represent-ing 52% of harvest cost. Some examples are: Although producers donât directly benefit monetarily from these non-cash values today, that might change in the future. 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