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Energy Crop Production Costs and Breakeven Prices Under Minnesota Conditions
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Abstract
Production costs and breakeven prices were calculated for four energy crops plus corn stover. The energy crop breakeven prices were calculated under two different scenarios regarding land costs and the opportunity costs of not utilizing the land for some other competing land use. One scenario is that the competing land use is pasture. The other is that the energy crops would compete with grain crops on more expensive land, and would need to provide a return over land costs equal to returns on the grain crops. Corn stover would be the cheapest of the energy biomass sources considered, at 50/tontocovertheadditionalmachinerycoststoshred,rake,bale,andtransport25milestoaprocessingplant.Asidefromstover,agrasslandcropunderhighfertilizationwitha4−tonyieldhasthelowestcostat77/ton of dry matter. A grassland crop under low fertilization with a 2-ton yield but a longer stand life has the highest cost at 110/ton.Hybridpoplarcomesinat81/ton. Willow is at an early stage of development in Minnesota, but it would be the cheapest energy crop at 72/tonifitachievesa5−tonyieldwitha23−yearstandlifethathasbeenreportedinNewYork.Thesecostsarebasedonthepasturelandrentalrateof40/acre. The more expensive grain crop land translates directly into higher energy crop breakeven prices which are also presented in the paper.Crop Production/Industries,