1. Production Cost Budgets for Perennial Grass Systems
CenUSA
Production Cost Budgets for Perennial Grass Systems
Agro-ecosystem Approach to Sustainable Biofuels Production via the Pyrolysis-Biochar Platform (USDA-NIFA AFRI CAP)

2. Renewable Fuels Standard2

3. The
Grand
Vision

4. Potential Energy Crops
Switchgrass
Miscanthus
Energy Cane
Sweet Sorghum
Poplar 4

5. ‘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 5

6. 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 tons of biomass per acre
Lifespan of years 6

7. 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 7

8. 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) 8

9. 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 9

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 10

11. 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
$0.00
Potassium
$0.41/pound
Herbicide
$6.40
Interest
$2.30
Harvesting Costs
$141.40
Total Cost
$212.60
Notes: Full harvest of 6 tons per acre, 10% reseeding 11

12. 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
$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). 12

13. 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
$0.00
Potassium
$0.41/pound
Herbicide
$6.40
Interest
$1.51
Harvesting Costs
$141.40
Total Cost
$188.26
Notes: Full harvest of 6 tons per acre 13

14. 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
$28.70
Herbicide
$0.00
Interest
$2.37
Harvesting Costs
$243.17
Total Cost
$316.49
Notes: Full harvest of 10 tons per acre 14

15. 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 15

16. 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 16

17. Thank you for your time and attention. Any questions
Thank you for your time and attention. Any questions? For more information, see
This project is supported by Agriculture and Food Research Initiative Competitive Grant No from the National Institute of Food and Agriculture.
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