Economic Feasibility of Ethanol Production from Sweet Sorghum Juice in Texas

Abstract

The economic feasibility of producing ethanol from sweet sorghum juice is projected using Monte Carlo simulation models to estimate the price ethanol plants will likely have to pay for sweet sorghum and the uncertain returns for ethanol plants. Ethanol plants in high yielding regions will likely generate returns on assets of 11%-12% and in low yield areas the returns on assets will be less than 10%.Sweet Sorghum, Ethanol, Monte Carlo Simulation, Agribusiness, Agricultural Finance, Crop Production/Industries, Farm Management, Risk and Uncertainty, D20 G10 D81 C15,