Short-rotation woody crops (SRWCs) are fast-growing trees grown for energy or paper production. The productivity and economic assessment model for short-rotation woody crops, or SRWC-PEAM, is a web-based tool for evaluating the potential to produce woody feedstock from SRWCs on marginal lands in the southeastern United States. Productivity and economic assessments are based on land history and conditions, species, economic factors and management, and an enterprise budget developed according to recent field research and published data. Extension professionals can use SRWC-PEAM to evaluate stand establishment and management options to find profitable SRWC project scenarios for landowners and improve producers\u27 economic risk management decisions for SRWCs

Ghezehei, Solomon B.

Hazel, Dennis W.

Nichols, Elizabeth Guthrie

English

Clemson University: TigerPrints

Journal of Extension Volume 58 Number 5 Article 7 October 2020 SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast Solomon B. Ghezehei North Carolina State University Dennis W. Hazel North Carolina State University Elizabeth Guthrie Nichols North Carolina State University Follow this and additional works at: https://tigerprints.clemson.edu/joe Recommended Citation Ghezehei, S. B., Hazel, D. W., & Nichols, E. G. (2021). SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast. Journal of Extension, 58(5). Retrieved from https://tigerprints.clemson.edu/joe/vol58/iss5/7 This Tools of the Trade is brought to you for free and open access by TigerPrints. It has been accepted for inclusion in Journal of Extension by an authorized editor of TigerPrints. For more information, please contact kokeefe@clemson.edu. October 2020Volume 58Number 5Article #v58-5tt4Tools of the TradeSRWC-PEAM: A Comprehensive Appraisal Tool for Short-RotationWoody Crops in the SoutheastAbstractShort-rotation woody crops (SRWCs) are fast-growing trees grown for energy or paper production. Theproductivity and economic assessment model for short-rotation woody crops, or SRWC-PEAM, is a web-basedtool for evaluating the potential to produce woody feedstock from SRWCs on marginal lands in the southeasternUnited States. Productivity and economic assessments are based on land history and conditions, species,economic factors and management, and an enterprise budget developed according to recent field research andpublished data. Extension professionals can use SRWC-PEAM to evaluate stand establishment and managementoptions to find profitable SRWC project scenarios for landowners and improve producers' economic riskmanagement decisions for SRWCs.Keywords: short-rotation woody crops, energy feedstock, productivity, web tools   IntroductionShort-rotation woody crops (SRWCs) are fast-growing trees grown for energy or paper production. There isgrowing need to produce bioenergy feedstock as SRWCs, and because croplands and forestlands are nottargeted for that purpose (Ghezehei et al., 2015), evaluating SRWC productivity potential on marginal lands isimportant. Assessment of productivity potential of lands is necessary as a measure of viability for futuresustainable bioenergy feedstock supply (Long et al., 2013) and should address the species that qualify assuitable bioenergy feedstock (Lemus & Lal, 2005). The economic success of SRWC-based feedstock productiondepends on minimizing establishment and production costs while maximizing returns through enhancedproductivity and receipt of adequate feedstock prices.Because SRWC establishment and management by landowners is not commonly done, Extension professionalshave the opportunity to provide technical support and required information to promote adoption bylandowners (Grebner et al., 2009; Haider et al., 2015; Townsend et al., 2016) and help ensure economicsuccess. We developed a web-based appraisal tool for SRWC-based feedstock production using an enterprisebudget for best stand management on marginal lands. This tool—the productivity and economic assessmentmodel for short-rotation woody crops, or SRWC-PEAM—allows the user to explore the productivity andSolomon B.GhezeheiResearch ScholarDennis W. HazelAssociate ProfessorElizabeth GuthrieNicholsProfessorDepartment ofForestry andEnvironmentalResourcesNorth Carolina StateUniversityeconomic viability of growing SRWCs based on user inputs. Productivity, project budget, and economic returnsare determined on the basis of user-provided scenarios. The tool can be used to determine delivered price orproductivity required to achieve a target net present value, such as a break-even point. As current Extensionoutreach and education programs are improved to better support landowners to produce woody feedstock forenergy (Romich, 2015), information generated from SRWC-PEAM supports such outreach efforts by enablingthe assessment of economic risks and potential of SRWC production for bioenergy in the Southeast. ForSRWC-PEAM to be applicable outside the Southeast, it should be validated for productivity on the basis ofbiomass data and incorporation of SRWCs suitable for growing in the regions of interest.How SRWC-PEAM WorksSRWC-PEAM addresses questions regarding productivity and economic viability of woody feedstock based ontype of marginal land, management practices, rotation length, and discount rates and feedstock price atdelivery. Users provide data by selecting options from drop-down lists for each blank cell or by enteringnumbers where appropriate. Table 1 identifies data the user must enter. After entering all required inputs, theuser selects "Submit (Update)" to view results.Table 1.Inputs Into the SRWC-PEAM Tool Used to Create Analyses for Hypothetical Short-Rotation Woody Crop Production ScenariosGeneral input category Specific inputsSite characteristics Previous land useCultivation history and present coverTopographic positionMicrositeDepth to water tableFloodingSwampiness/wetnessSoil-related characteristics Geologic sourceSoil depth and presence of panRoot zone soil textureRoot zone soil colorRoot zone soil structureMottlingTopsoil depthSurface layer compactionEstablishment and management options SpeciesPlanting yearRotation (years)Planting density (trees/acre)Initial mortality (%)Use of irrigation?Tools of the Trade SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast JOE 58(5)©2020 Extension Journal Inc. 1Economic analysis criteria Delivered price ($/green ton)Discount rate (%)Note. Some inputs are selected from drop-down menus.SRWC-PEAM has three main components: a site preparation and management component, a land suitabilityand biomass productivity component, and an economic and enterprise budget component.For the site preparation and management component, data from a comprehensive set of establishment andmanagement practices used for SRWC species are used, and the best-case scheme of activities andschedules for establishing and managing a stand is applied (Michler & Rathfon, 2006; Stringer et al., 2010)on the user-selected land type. Examples include use of pre- and postemergent herbicides; soil tillage,including disking and subsoiling; cover crop establishment; planting; use of nutrient and pH amendments;irrigation; weed/grass suppression; harvesting; and hauling.For the land suitability and biomass productivity component, biomass yield estimate is based on thesuitability of the land for a user-selected hardwood SRWC (Baker & Broadfoot, 1979) and validated withdata from many nonirrigated and irrigated poplar (Populus spp.), American sycamore, and sweetgumplantations in the Southeast (Ghezehei et al., 2019).The enterprise budget determines the costs of the applicable activities on the basis of up-to-date onlineprices of items used, published machinery costs (University of Illinois Extension, 2017), and labor costs(U.S. Bureau of Labor Statistics, 2019). Revenues are determined according to predicted yield and expectedproduct value per unit for building a cash flow table for the rotation. The user-provided discount rate is usedfor calculating estimates of investment quality, including net future value, equivalent annual value, landexpectation value, and benefit-to-cost ratio.Interpreting OutputAfter running SRWC-PEAM, applying a hypothetical scenario for a particular land, the user can reviewprojected cash flows and investment quality parameters to determine whether that scenario will provide asatisfactory project return. The user can rerun SRWC-PEAM, changing variables such as species and rotationto see how yield and investment quality change. SRWC-PEAM allows the user to select a target net presentvalue (NPV) per acre or to perform a break-even analysis (target NPV of 0). After the user has run SRWC-PEAM, selecting "Green Biomass" displays the green wood biomass (ton/acre) required to achieve the targetNPV according to the user-provided delivered price. Selecting "Delivered Price" displays the price ($/greenton) required to achieve the target NPV according to the calculated productivity.The implications of the target NPV analysis options lie in addressing how higher future prices or higherproductivity (growing more productive varieties of the selected species) can enhance returns. Interpretation ofthe information obtained from SRWC-PEAM should involve taking into account information on disease and pestthreats of the selected species at a particular site.ConclusionSRWC-PEAM is an open-access web-based tool that provides Extension professionals or others who adviseTools of the Trade SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast JOE 58(5)©2020 Extension Journal Inc. 2landowners an opportunity to explore the potential to establish SRWC projects as an investment. Energypolicies in the United States continue to establish goals for renewable energy that could generate robustmarkets for SRWCs. However, SRWC plantations are relatively expensive to establish and manage comparedto conventional forest product plantations. That fact and the relative unfamiliarity with SRWCs amonglandowners will create some reluctance to establish them. Therefore, the information provided by SRWC-PEAMhas the potential to improve producers' marketing risk management decisions. Further, the tool is a valuableresource for Extension personnel offering marketing risk management education and outlook programming.SRWC-PEAM can be accessed in either of two ways:1. Go directly to the tool at https://projects.ncsu.edu/project/bioenergy/SR_Hardwoods.html.2. Go to the North Carolina State University Extension Forestry site at https://forestry.ces.ncsu.edu/srwc/, andthen select the "Southeast SRWC Feasibility" link.Author NoteSRWC-PEAM is based largely on projects funded by the Bioenergy Research Initiative of the North CarolinaDepartment of Agriculture and Consumer Services.Correspondence concerning this article should be addressed to Solomon B Ghezehei. Email:sbghezeh@ncsu.eduReferencesBaker J. B., & Broadfoot W. M. (1979) A practical field method of site evaluation for commercially importantsouthern hardwoods (Vol. 26). U.S. Department of Agriculture, Forest Service, Southern Forest ExperimentStation. https://www.srs.fs.usda.gov/ pubs/gtr/uncaptured/gtr_so026.pdfGhezehei, S. B., Nichols, E. G., & Hazel, D. W. (2019) Productivity and cost-effectiveness of short-rotationhardwoods on various land types in the southeastern USA. International Journal of Phytoremediation. Advanceonline publication. https://doi.org/10.1080/15226514.2019.1647404Ghezehei, S. B., Shifflett, S. D., Hazel, D. W., & Nichols, E. G. (2015). SRWC bioenergy productivity andeconomic feasibility on marginal lands. Journal of Environmental Management, 160, 57–66.Grebner, D. L., Perez-Verdin, G., Henderson, J. E., & Londo, A. J. (2009). Bioenergy from woody biomass,potential for economic development, and the need for Extension. Journal of Extension, 47(6), Article v47-6a7.https://www.joe.org/joe/2009december/a7.phpHaider, N. M., Kar, S. P., Townsend, P. A., & Zobrist K. W. (2015). Growing green energy: A review ofExtension's role in the development of advanced biofuels. Journal of Extension, 53(1), Article v53-1a2.https://www.joe.org/joe/2015february/a2.phpLemus, R., & Lal, R. (2005). Bioenergy crops and carbon sequestration. Critical Reviews in Plant Sciences,24(1), 1–21. https://doi.org/10.1080/07352680590910393Long, H., Li, X., Wang, H., & Jia, J. (2013). Biomass resources and their bioenergy potential estimation: ATools of the Trade SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast JOE 58(5)©2020 Extension Journal Inc. 3review. Renewable and Sustainable Energy Reviews, 26, 344–352.https://doi.org/10.1016/j.rser.2013.05.035Michler, C. H., & Rathfon, R. (2006). Site preparation for tree planting in agricultural fields and hardwoodforests. Planting and care of fine hardwood seedling, hardwood tree improvement and regeneration center.Purdue University Extension. https://www.extension.purdue.edu/extmedia/FNR/FNR-220.pdfRomich, E. (2015). The role of Extension in energy education. Journal of Extension, 53(2), Article v53-2comm1. https://www.joe.org/joe/2015april/comm1.phpStringer, J. W., Clatterbuck, W., & Seifert, J. (2010). Site preparation and competition control guidelines forhardwood tree plantings (Publication No. SREF-FM-014:2-35). Southern Regional Extension Forestry.https://sref.info/resources/publications/site-preparation-and-competition-control-guidelines-for-hardwood-tree-plantings-1Townsend, P. A., Haider, N. M., Asah, S. T., & Zobrist, K. W. (2016). Extension professionals' perspectives onsupporting feedstock production for biofuels: Concerns, challenges, and opportunities. Journal of Extension,54(6), Article v54-6rb1. https://www.joe.org/joe/2016december/rb1.phpUniversity of Illinois Extension. (2017). Farm business management: Machinery cost estimates: Summary.University of Illinois at Urbana-Champaign, College of Agricultural, Consumer, and Environmental Sciences,Department of Agricultural and Consumer Economics. https://farmdoc.illinois.edu/wp-content/uploads/2019/08/machinery-cost-estimates_ summary.pdfU.S. Bureau of Labor Statistics. (2019). Occupational employment statistics: 45-0000 farming, fishing, andforestry occupations. https://www.bls.gov/oes/current/oes450000.htmCopyright © by Extension Journal, Inc. ISSN 1077-5315. Articles appearing in the Journal become the propertyof the Journal. Single copies of articles may be reproduced in electronic or print form for use in educational ortraining activities. Inclusion of articles in other publications, electronic sources, or systematic large-scaledistribution may be done only with prior electronic or written permission of the Journal Editorial Office, joe-ed@joe.org.If you have difficulties viewing or printing this page, please contact JOE Technical SupportTools of the Trade SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast JOE 58(5)©2020 Extension Journal Inc. 4

SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast

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SRWC-PEAM: A Comprehensive Appraisal Tool for Short-Rotation Woody Crops in the Southeast

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