On-Farm Biodiesel Production From Oilseed Crops in the Upper Midwest While the economics surrounding large-scale oilseed crushing and biodiesel production have been fairly well documented, the economics of small-scale on-farm oilseed crushing and biodiesel production have largely been left to discovery by individual producers. In 2006 several farmers in Wisconsin and Minnesota began crushing oilseeds with small- scale on-farm oilseed presses. Depending on the press, the amount of oil produced ranges from 5,000 to 35,000 gallons per year. We conducted five case studies of these operations and have identified the rational for beginning these activities and several key economic and agronomic constraints associated with utilizing the pressed meal and oil. Meal is utilized as animal feed while the oil can be utilized as straight vegetable oil (SVO) or converted into biodiesel. The dramatic change in crop prices since mid-2006 has influenced the economics of on-farm biodiesel production, causing farmers to evaluate alternative uses for the straight vegetable oil. These include utilizing the straight vegetable oil directly as a heating source or as a fuel for modified diesel engines. Pressed oilseed meal generally contains more energy then the corresponding solvent extracted oilseed meal, and should command a price premium when used in feed rations. Issues and challenges Five operations experimenting with an oilseed press and a biodiesel processor in the Midwest Five operations experimenting with an oilseed press and a biodiesel processor in the Midwest Abstract Seth Fore & Paul Porter Department of Agronomy and Plant Genetics University of Minnesota ( ) Locations x Wannaska, MN Rice Lake, WI x x St. Paul campus Funding for the this project initially came from the Northwest Regional Sustainable Development Partnership (NWRSP) for the purchase of the two-screw oilseed press and biodiesel processor. The Minnesota Department of Agriculture awarded our farmer cooperators a grant which help cover some of their time and expenses. The Minnesota Pollution Control Agency is funding an environmental assessment and outreach effort. Funding Case studies and preliminary results from the Wannaska pilot study show that the economic feasibility of small scale biodiesel production is closely tied to the current prices of oil seeds and petroleum diesel. The current economic environment is not one that favors small scale biodiesel production, and current policies controlling biodiesel subsidies do not incentivize small scale production. The most successful producers will have multiple ways to utilize oil and meal, including biodiesel production. Uses such as burning straight vegetable oil in diesel engines, using straight vegetable oil for heating fuel, pelletizing meal with glycerin for burning are being evaluated as ways generate a greater level of economic sustainability for the small scale producer. Initial conclusions Farm 1Farm 2Farm 3Farm 4Wannaska Primary Initial MotivationEconomic fuel source and feed substitute Energy independence and feed substitute Economic fuel source and feed substitute Economic analysis Farm Size Dairy Cows1, and 150 calves3000 Cropped acres2, ,0001,660>800 Cropscorn, alf, soycorn, alf, soy, can, suncorn, alf, soycorn, alf, soy, suncan, wheat, soy, bluegr. Screw Press ModelKomet No. of screws42442 Pressing sinceFall, 2006 July, 2006 Main pressed cropSunflower/soybeanSunflowerCanola Has pressedcan, sun, soySunflowerCanola Can, sun, hazel, ~ Amount pressed (gal)15,0005,0008,00015,0001,000 Press Setup On-site storage15,000 bu5,000 bu8,000 bu1,200 bu8,000 bu Automated?YesNoYesNoyes Comments/Issues:Very efficient feedstock delivery system --Very efficient feedstock delivery system --Seed flow difficulties Oil Settling systemgravity: 4x250gal tanksgravity: 5x250gal tanksgravity: 4x250 gal tanksgravitygravity: 4x250 gal tanks Primary oil useSVO: heating fuelBiodieselSVO: used in modified diesel engines BiodieselBiodiesel and off-site conversion Primary glycerol usePotentially animal feedNo current use Comments/Issues:Observed that soybeans require the least pressing maintenance Operating in a low overhead system to minimize costs Investigating potential food grade production Has the potential to generate more meal than he can feed to his herd More labor intensive than first expected Meal usage On site?Yes No Livestock fedDairy cows Dairy cows and calvesDairy CowsCurrently Stored Ration (lb/day)~ Replaced whatsoybean mealsoybean meal, megalacsoybean meal, corn -- Feeding methodTMRManualTMRManual-- Biodiesel Processor Model(NA)Appleseed(NA)CustomFuel Meister II Capacity(NA)40 gal(NA)300 gal40 gal Processing since(NA)Fall, 2006(NA)Fall, 2006July, 2006 Comments/Issues:Currently using oil as a replacement for LP to heat dairy parlors Has been running B100 for a year with in farm equipment with no problems Currently investigating biodiesel production vs. food grade production Has been running B100 in farm equipment with no issues Difficult and costly to determine fuel quality and consistency Infrastructure investment $84,500$22,025$100,000$46,000$23,480 Increasing value of oilseed crops in 2007 markedly decreased the economic feasibility of biodiesel production. The economic viability of biodiesel production is closely tied to government subsidies which are linked to ASTM certification. ASTM certification is not economically feasible for small scale biodiesel producers. Existing government subsidies do little to incentivize small scale producers. High oil characteristics of meal has led to guarded acceptance by the animal feed industry. An overabundance of crude glycerin has drastically reduced its market price. Concerns about fuel quality and process consistency of small scale production are prevalent. There is limited research concerning the long term effects of burning straight vegetable oil as fuel in modified and unmodified diesel engines. "Oil Crops Outlook" USDA. 15 Oct "Gulf Coast Spot Prices #2 Diesel Fuel" Energy Information Agency. 15 Oct. 2007