Production Cost Budgets for Perennial Grass Systems

Agro-ecosystem Approach to Sustainable Biofuels Production via the Pyrolysis-Biochar Platform (USDA-NIFA AFRI CAP)

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Conventional Biofuels Cellulosic Biofuels

Biodiesel Additional Advanced Biofuels

Renewable Fuels Standard

TheGrandVision

Potential Energy CropsSwitchgrass Miscanthus

Energy Cane Sweet Sorghum Poplar

‘Liberty’ Switchgrass

• Developed by CenUSA researchers with USDA-ARS in Lincoln, Nebraska

• Introduced in 2013, with a number of field trials across 10 states

• Is a high-yielding switchgrass specifically created from bioenergy use

• Target of 6-7 tons of biomass per acre

• Lifespan of 10+ years

Miscanthus

• Family of perennial grasses native to Africa and southern Asia

• Giant Miscanthus is a sterile hybrid that has become a popular choice for bioenergy development

• Target of 10-15 tons of biomass per acre

• Lifespan of 15-30 years

Pre-Establishment

• Cost estimates based on conversion from pasture/hay/unimproved grass land

• Basic land preparation is the same for either grass

• Field preparation includes brush mowing, disking, and soil finishing

• Rough cost are $70 per acre

Pre-Establishment• For both types of grasses, best management

practices point to planting the grasses after a crop of soybeans

• Followed by a cover crop and/or herbicide application

• Biggest concern going into establishment year is weed pressure

• Rough cost are $300 per acre, and you have a crop to sell (soybeans)

Establishment Year for LibertyPrice per Unit Units Used Cost

Pre-harvest Machinery Operations

$31.15

Lime and Soil Testing $1.60

Seed $15.00/pound 5 $75.00

Herbicide $13.12

Interest $4.03

Harvest Machinery Operations $77.80

Total Cost $202.70

Notes: No fertilizer in establishment year, can harvest half of expected crop (3 tons per acre) in establishment year

Establishment Year for MiscanthusPrice per Unit Units Used Cost

Pre-harvest Machinery Operations

$149.10

Lime and Soil Testing $88.60

Rhizomes $0.09/rhizome 7,000 $630.00

Nitrogen $0.44/pound 186 $81.84

Phosphorus $0.43/pound 62 $26.66

Potassium $0.41/pound 50 $20.50

Herbicide $23.92

Interest $34.02

Total Cost $1,054.64

Notes: No harvest in establishment year

Year 2 Costs for LibertyPrice per Unit Units Used Cost

Pre-harvest Machinery Operations

$28.60

Seed $15.00/pound 0.5 $7.50

Nitrogen $0.44/pound 60 $26.40

Phosphorus $0.43/pound 0 $0.00

Potassium $0.41/pound 0 $0.00

Herbicide $6.40

Interest $2.30

Harvesting Costs $141.40

Total Cost $212.60

Notes: Full harvest of 6 tons per acre, 10% reseeding

Year 2 Costs for MiscanthusPrice per Unit Units Used Cost

Pre-harvest Machinery Operations

$12.55

Nitrogen $0.44/pound 35 $15.40

Phosphorus $0.43/pound 7.5 $3.23

Potassium $0.41/pound 35 $14.35

Herbicide $17.52

Interest $2.10

Harvesting Costs $134.83

Total Cost $199.98

Notes: Can harvest half of expected crop (5 tons per acre).

Year 3+ Costs for LibertyPrice per Unit Units Used Cost

Pre-harvest Machinery Operations

$12,55

Nitrogen $0.44/pound 60 $26.40

Phosphorus $0.43/pound 0 $0.00

Potassium $0.41/pound 0 $0.00

Herbicide $6.40

Interest $1.51

Harvesting Costs $141.40

Total Cost $188.26

Notes: Full harvest of 6 tons per acre

Year 3+ Costs for MiscanthusPrice per Unit Units Used Cost

Pre-harvest Machinery Operations

$5.00

Nitrogen $0.44/pound 70 $30.80

Phosphorus $0.43/pound 15 $6.45

Potassium $0.41/pound 70 $28.70

Herbicide $0.00

Interest $2.37

Harvesting Costs $243.17

Total Cost $316.49

Notes: Full harvest of 10 tons per acre

Liberty – Long term

Over a 10 year timeframe, the Liberty stand:

•Would produce 57 tons of biomass per acre

•For a total cost of $1,921.38• Not including land cost

•Breakeven price before land: $33.71 per ton

•Given average land charge for improved pasture ($77 per acre), breakeven price with land: $47.22 per ton

Miscanthus – Long term

Over a 15 year timeframe, the Miscanthus stand:

•Would produce 135 tons of biomass per acre

•For a total cost of $5,368.99• Not including land cost

•Breakeven price before land: $39.77 per ton

•Given average land charge for improved pasture ($77 per acre), breakeven price with land: $48.33 per ton

Thank you for your time and attention.

Any questions?

For more information, seewww.cenusa.iastate.edu

This project is supported by Agriculture and Food Research Initiative Competitive Grant No. 2011-68005-30411 from the National Institute of Food and Agriculture.

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