Production Cost Budgets for Perennial Grass Systems

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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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Renewable Fuels Standard
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The Grand Vision
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Potential Energy Crops
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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

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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

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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

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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)

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Establishment Year for Liberty
Price 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
10
Establishment Year for Miscanthus
Price 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
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Year 2 Costs for Liberty
Price 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
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Year 2 Costs for Miscanthus
Price 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).
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Year 3 Costs for Liberty
Price 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
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Year 3 Costs for Miscanthus
Price 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
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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

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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

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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
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