Farmers’ Willingness to Grow Switchgrass as a Cellulosic Bioenergy Crop: A Stated Choice Approach

Farmers’ Willingness to Grow Switchgrass as a Cellulosic Bioenergy Crop: A Stated Choice Approach Agriculture’s role as a source of feedstocks in a potential lignocellulosic-based biofuel industry is a critical economic issue. Several studies have assessed the technical feasibility of producing bioenergy crops on agricultural lands. However, few of these studies have assessed farmers’ willingness to produce or supply bioenergy crops or crop residues. Biomass markets for bioenergy crops do not exist, and developing these markets may take several years. Therefore, an important, yet unaddressed question is under what contractual or pricing arrangements farmers will grow biomass for bioenergy in these nascent markets. The purpose of this paper is to examine farmers’ willingness to produce switchgrass under alternative contractual, pricing, and harvesting arrangements. Contracts are likely to be the preferred method to bring together producers and processors of biomass for bioenergy. Contract design may vary across farmers and crop type, and may include attributes specific to annual crops, contract length, quantity or acreage requirements, quality specifications, payment dates, and other important features. A stated choice survey was administered in three, six-county areas of Kansas by Kansas State University and the USDA, National Agricultural Statistics Service from November 2010 to January 2011 to assess farmers’ willingness to produce cellulosic biomass under different contractual arrangements. This paper focuses on the switchgrass stated choice experiment from the survey. The stated choice experiment asked farmers to rank their preferred contractual arrangement from two contract options and one “do not adopt” option. Contractual attributes included percentage net returns above the next best alternative (e.g. CRP or hay production), contract length, a custom harvest option, insurance availability, and a seed-cost share option. Respondents then ranked their preferred contract option. The survey also collected data on farm characteristics, bioenergy crop preferences, socio-economic demographics, risk preferences, and marketing behavior. The survey used a stratified sample of farmers who farm more than 260 acres and grow corn. A total of 460 surveys were administered with a 65 percent completion rate. The underlying theoretical model uses the random utility model (RUM) approach to assess farmers’ willingness to grow switchgrass for bioenergy and determine the contractual attributes most likely to increase the likelihood of adoption. This framework allows us to define the “price,” or farmers’ mean willingness to accept, for harvested biomass sold to an intermediate processor. The estimated choice models follow the approach of Boxall and Adamowicz (2002) to capture heterogeneity across farmers and geographic regions due to management differences, conservation practices, and risk preferences. Using the percentage net return above CRP or hay production allows prices to float to levels that will entice farmers to adopt switchgrass. This will help determine a market price for bioenergy crops based on current market and production conditions without specifying an exact monetary value for the biomass. In addition, the survey results will facilitate contract designs between biorefineries and farmers while informing policymakers and the biofuel industry about farmers’ willingness to supply biomass for bioenergy production. Reference: Boxall, P.C. and W.L. Adamowicz, “Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach,” Environmental and Resource Economics 23(2002): 421 – 446.Biofuels, Cellulosic, Biomass, Switchgrass, Farmers, Willingness to Pay, Crop Production/Industries, Production Economics, Resource /Energy Economics and Policy,

Farmers' Willingness to Grow Cover Crops: Examining the Economic Factors of Adoption in Alabama

The inclusion of cover crops in cropping systems brings both direct and indirect costs and benefits. The literature has shown that cover crops can improve soil conservation and productivity, potentially improving cash crop yields and decreasing cash crop production costs. Farmers will adopt cover crops if the net economic benefit of utilizing them is positive. This study examines farmers’ willingness to grow cover crops as a soil conservation practice and to examine the socio-economic factors affecting their decision. Survey data collected in 2007-8 from Alabama farmers about cover crop adoption and management is utilized to estimate a cover crop adoption model.cover crops, conservation, adoption, generalized ordered logit, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics,

Annual bioenergy crops for biofuels production: Farmers' contractual preferences for producing sweet sorghum

Dedicated annual sorghum crops, such as sweet sorghum or energy sorghum, may provide an option for farmers to supply cellulosic feedstocks for biofuel production and help the industry meet government mandates. Kansas farmers are poised to be major producers of sweet sorghum for biofuels due to favorable agro-ecological conditions. The purpose of this paper is to assess Kansas farmers' willingness to grow sweet sorghum under contract as a feedstock for biofuel production. The paper examines farmers' willingness-to-pay for contract attributes and the impact of socio-economic factors on their willingness-to-pay for these attributes. A stated choice survey was administered to Kansas farmers to assess their willingness to grow sweet sorghum for biofuels under various contracting scenarios. Results show that farmers may be willing to grow biomass for bioenergy under contract, but may have varying preferences for the importance of contract attributes such as net returns, contract length, insurance availability, government incentives, and potential for biorefinery harvest options based on socio-economic characteristics of growers

Willingness of Kansas farm managers to produce alternative cellulosic biofuel feedstocks: An analysis of adoption and initial acreage allocation

This paper examines the likelihood that farm managers would be willing to harvest crop residue, or grow a dedicated annual or perennial bioenergy crop. In addition, factors affecting how many initial acres adopters would be willing to plant of a dedicated annual or perennial bioenergy crop are assessed. The study finds several factors affect farm managers' decisions to harvest crop residue, or grow annual or perennial bioenergy crops, as well as their potential initial acreage allocation decisions. These factors lead to several policy implications that should be tailored to the specific type of cellulosic bioenergy crop

Large-Scale Evidence for Conservation of NMD Candidature Across Mammals

BACKGROUND: Alternatively-spliced (AS) forms can vary protein function, intracellular localization and post-translational modifications. AS coupled with mRNA nonsense-mediated decay (NMD) can also control the transcript abundance. Here, we have investigated the genome-scale conservation of alternatively-spliced NMD candidates (AS-NMD candidates), in mammals. METHODOLOGY/PRINCIPAL FINDINGS: We mapped>12 million cDNA/EST library transcripts, comprising pooled data from both older and next-generation sequencing techniques, against genomic sequences to annotate AS-NMD candidates generated by in-frame premature termination codons (PTCs), in the human, mouse, rat and cow genomes. In these genomes, we found populations of genes that harbour AS-NMD candidates, varying in number from approximately 149 to 2,051 genes. We discovered that a highly-significant proportion (27%-35%) of AS-NMD candidate genes in mouse, rat and cow, also have human orthologs targeted for NMD. Intron retention was the most abundant type of AS-NMD, ranging from 43% to 67% of genes harbouring an AS-NMD candidate. Groupings of AS-NMD candidate genes either with or without intron retentions also have highly significant AS-NMD conservation, indicating that the trend is not due primarily to conservation of intron retentions. As a subset, the AS-NMD intron retentions are distinguished from non-retained introns by higher GC content, and codon usage similar to the usage in protein-coding sequences. This indicates that most of these alternatively spliced sequences have coded for proteins in the recent evolutionary past. In general, the AS-NMD candidate genes showed a similar pattern of Gene Ontology functional category enrichments in all four species. Genes linked to nucleic-acid interaction and apoptosis, and involved in pathways linked with cancer, were the most common. Finally, we mapped the AS-NMD candidates to mass spectrometry-derived proteomics data, and gathered evidence of truncated polypeptides for at least 10% of all human AS-NMD candidate transcripts. CONCLUSIONS/SIGNIFICANCE: In summary, our analysis provides strong statistical evidence for conservation of functional AS-NMD candidature across Mammalia for a large subset of genes. However, because codon usage of AS-NMD intron retentions is similar to the usage in exons, it is difficult to de-couple conservation of AS-NMD-based regulation from conservation for protein-coding ability, for intron retentions

Economic Analysis of Using Soybean Meal as a Mushroom Growing Substrate

Mushrooms have been grown commercially on many different substrates for years, usually agricultural by-products such as straw or stover. Increased popularity for specialty mushrooms with consumers has led to increased production and great demand for economic substrates. Oyster mushrooms are easier to grow relative to other types of mushrooms and their production has increased dramatically in recent years. This study examines the economic feasibility of using soybean hulls as a primary substrate for oyster mushrooms, replacing traditional wheat straw. The study uses a cost-benefit analysis to determine an optimal substrate based on yield and the number of crops harvested per year. The study shows that soybean hulls, combined with corn gluten or soybean meal increases yield 4.5 times, which more than offsets for higher costs for soybean hulls. The use of soybean substrate also allows a producer to raise about four more crops per year, which in turn uses fixed resources more efficiently and increases profitability

Farmers’ Willingness to Grow Sweet Sorghum as a Cellulosic Bioenergy Crop: A Stated Choice Approach

Biofuel production must increase to 36 billion gallons by the year 2022, according to government mandates. The majority of this fuel must be produced from “advanced” or second-generation biofuel feedstocks after 2015. Advanced biofuel feedstocks include annual crops such as sweet sorghum. Kansas farmers are poised to be major producers of sweet sorghum for biofuels. A stated choice survey was administered to Kansas farmers to assess their willingness to grow sweet sorghum for biofuels under various contracting scenarios. Results show that farmers are willing to grow biomass for bioenergy under contract and that insurance availability plays an important role in their decision

Farmers’ Willingness to Grow Switchgrass as a Cellulosic Bioenergy Crop: A Stated Choice Approach

Farmers’ Willingness to Grow Switchgrass as a Cellulosic Bioenergy Crop: A Stated Choice Approach Agriculture’s role as a source of feedstocks in a potential lignocellulosic-based biofuel industry is a critical economic issue. Several studies have assessed the technical feasibility of producing bioenergy crops on agricultural lands. However, few of these studies have assessed farmers’ willingness to produce or supply bioenergy crops or crop residues. Biomass markets for bioenergy crops do not exist, and developing these markets may take several years. Therefore, an important, yet unaddressed question is under what contractual or pricing arrangements farmers will grow biomass for bioenergy in these nascent markets. The purpose of this paper is to examine farmers’ willingness to produce switchgrass under alternative contractual, pricing, and harvesting arrangements. Contracts are likely to be the preferred method to bring together producers and processors of biomass for bioenergy. Contract design may vary across farmers and crop type, and may include attributes specific to annual crops, contract length, quantity or acreage requirements, quality specifications, payment dates, and other important features. A stated choice survey was administered in three, six-county areas of Kansas by Kansas State University and the USDA, National Agricultural Statistics Service from November 2010 to January 2011 to assess farmers’ willingness to produce cellulosic biomass under different contractual arrangements. This paper focuses on the switchgrass stated choice experiment from the survey. The stated choice experiment asked farmers to rank their preferred contractual arrangement from two contract options and one “do not adopt” option. Contractual attributes included percentage net returns above the next best alternative (e.g. CRP or hay production), contract length, a custom harvest option, insurance availability, and a seed-cost share option. Respondents then ranked their preferred contract option. The survey also collected data on farm characteristics, bioenergy crop preferences, socio-economic demographics, risk preferences, and marketing behavior. The survey used a stratified sample of farmers who farm more than 260 acres and grow corn. A total of 460 surveys were administered with a 65 percent completion rate. The underlying theoretical model uses the random utility model (RUM) approach to assess farmers’ willingness to grow switchgrass for bioenergy and determine the contractual attributes most likely to increase the likelihood of adoption. This framework allows us to define the “price,” or farmers’ mean willingness to accept, for harvested biomass sold to an intermediate processor. The estimated choice models follow the approach of Boxall and Adamowicz (2002) to capture heterogeneity across farmers and geographic regions due to management differences, conservation practices, and risk preferences. Using the percentage net return above CRP or hay production allows prices to float to levels that will entice farmers to adopt switchgrass. This will help determine a market price for bioenergy crops based on current market and production conditions without specifying an exact monetary value for the biomass. In addition, the survey results will facilitate contract designs between biorefineries and farmers while informing policymakers and the biofuel industry about farmers’ willingness to supply biomass for bioenergy production. Reference: Boxall, P.C. and W.L. Adamowicz, “Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach,” Environmental and Resource Economics 23(2002): 421 – 446