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Title: An economic assessment of short-rotation forestry and herbaceous crop production for energy feedstocks on marginal land in the Great Lakes region: Final report

Technical Report ·
OSTI ID:6914143

The economics of producing biomass for energy feedstocks on marginal land in the Great Lakes region are considered for several short-rotation forestry and herbaceous crop production systems. Short-rotation alternatives vary by tree spacing, rotation length, and intensity of weed control. Variation in yield resulting from differences in site quality is the primary variable for herbaceous alternatives. To conserve soil on marginal sites, perennial species are recommended. Production parameters for both systems are based on average conditions found for marginal land assuming tract sizes of between 100 to 500 acres. Two decision criteria are used: cost per million Btu and annual net return. Future cash flows are discounted with a real interest rate of 6 percent. Cost per million Btu ranges from $1.51 to $2.93 for short-rotation wood production. The break-even price for the 4 /times/ 4 ft short-rotation spacing is $44.00 per dry ton. Energy costs for herbaceous systems range form $1.96 to $5.43 per million Btu. Assuming medium herbaceous yields, the break-even price is $38.00 per dry ton. Harvest costs are currently the highest production cost for short-rotation wood. Production parameters considered most important to the economics of perennial herbaceous energy crops include fertilization, harvesting, land and yield. Thus, for both short-rotation forestry and herbaceous crop production, harvest and land costs are critical. However, the cost of planting stock is found more important for short-rotation systems while fertilizer costs are more important for herbaceous crop production. 39 refs., 21 figs., 27 tabs.

Research Organization:
Illinois Univ., Urbana (USA). Dept. of Forestry
DOE Contract Number:
FG05-83OR21390
OSTI ID:
6914143
Report Number(s):
DOE/OR/21390-T19; ON: DE88015076
Resource Relation:
Other Information: Portions of this document are illegible in microfiche products
Country of Publication:
United States
Language:
English