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Farm Energy IQFarms Today Securing Our Energy Future
Bioenergy Feedstock Production Greg Roth, Penn State Department of Agronomy
Farm Energy IQ
Bioenergy Feedstock Production for Agricultural
Service ProvidersGreg Roth
Penn State, Department of Plant Science
• Review adaptation of crops and residues such as corn, corn cobs, oilseed crops (e.g., canola and soybeans), and biomass crops (e.g., Miscanthus and willow)
• Review crop management and infrastructure requirements to produce bioenergy feedstocks
• Review methods for adding value to feedstock production
• Estimate production costs of various feedstocks
Objectives
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• Most widely used feedstock
• Experiences with corn ethanol production applicable to other potential bioenergy commodities
• Main bioenergy product is ethanol, with valuable co‐products including distillers grains, corn oil, and CO2
• Key drivers in building ethanol market are RFS, exports, expanded co‐product markets, and reduced energy use
Corn
• Corn is widely adapted across U.S. with bulk of production in Midwest
• Increased crop price due to ethanol has caused expansion of growing area
Corn—Adaptation
Month Operation Inputs
March/April Tillage Diesel
April/May Spreading Fertilizer Fertilizer, Diesel
April/May PlantingSeed, Fertilizer,
Diesel
May Herbicide Application Herbicide, Diesel
June Sidedress Fertilizer Fertilizer, Diesel
October Harvest and Store Diesel
Nov/April Haul Corn to Market Diesel
DecemberChop/Harvest Corn
StalksDiesel
Corn—Management
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• In 2014, production costs are estimated to be $4.67/bushel. Price can vary with yield.
• Ethanol returns vary with prices
• Good long term returns for producers and processors are essential
Production Costs Price Amount Total
Corn Price $5.00 160 bu/acre
$800
Variable Costs
Seed $3.44/1000
34,000 $117
Fertilizer NPK + Lime $134
Pesticides $51
Other Trucking, Ins., Interest, Drying $126
Fixed Costs
Land $150
Labor $45
Machinery $124
Net $53
Source: http://aede.osu.edu/research/osu‐farm‐management/enterprise‐budgets
• Ethanol returns vary with prices
• One bushel of corn at $4.54 can be processed into ethanol and distillers wet grain soluables(DWGS) worth $10.52
• Take home message for bioenergy industry: good long term returns for producers and processors are essential
2/3/12 3/28/2014
Corn Price $ 6.38 4.54
Ethanol $/gal 2.00 3.15
Ethanol/bu gal 2.8 2.8
Value $ 5.60 8.82
Wet distillers $/ton
74.00 69.30
DWGS/bu lb 49.00 49.00
DWGS Value $ 1.81 1.70
ValueEthanol + DWGS
$ 7.41 10.52
Bioenergyvalue minus corn price
$ 1.03 5.98
Corn Ethanol—Production Costs
Source: http://www.ams.usda.gov/mnreports/nw_gr213.txt
• Corn cobs can potentially be harvested and used for bioenergy
• Historically corn cobs were used as a heat source in the Midwest and Europe
• Cob removal has little to no environmental impacts
Corn Cobs
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• Corn cobs can be: – Shelled from ear corn
– cleaned from a corn cob mix harvested with the combine and then cleaned from the grain
– Collected from the back of the combine, sometimes mixed with husk and stover
• Corn cobs and stovercan also be collected following harvest
Corn Cob–Management
• One example is this H120 cob harvester from Redekop
• Tow‐behind cleaner separates cobs and discharges into a wagon
• Adjustable to include material other than cob (MOC)
Corn Cob–Combine Separation
Source: http://www.cobharvest.com/h120‐cob‐harvester/
• Cobs collected with MOC
• MOC increases yield per acre and captures some of the best fraction of the stover above the ear
Corn Cobs–Management
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• POET developed a system (EZ bale) which consists of a headed that stomps and rolls the stalks and discharges the cobs and upper stoverinto a windrow
• In a second pass, cobs and stover from plant tops are collected with a baler set to minimize soil contamination
Corn Cob–Harvest from Windrow
Photo credit: http://poet‐dsm.com/biomass
• While most production costs are incurred in corn production, harvesting results in additional costs
• A Purdue study indicated that cob harvesting cost approximately $54/ton
• Some farmers feel it can be done for less
Corn Cobs—Production Costs Price Amount Total
Cob Price $100 1 ton/acre $100
Variable Costs
Storing, Piling $4.72
Fertilizer Replacement $8.62
Other (Fuel, Labor, Lubrication, Etc.) $18.76
Total $32.10
Fixed Costs
Machinery (Harvest Wagon) $22.34
Net Return $46
Source: https://www.extension.purdue.edu/extmedia/ID/ID‐417‐W.pdf
• Increasing the amount of MOC could increase yields per acre from 20 to 30% and reduce cost per ton of material collected
• Increased yields would make the biomass a more attractive feedstock
Corn Cobs—Production Cost
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• Alternative markets for corn cobs include mushroom compost, animal bedding, and metal polishing compound
• Stover removal can reduce the need for residue management practices like stalk chopping or tillage and provide some value to cob harvest as well
Corn Cobs/Stover–Added Value Uses
SoybeansTypical yield: 3,000 lb/acre (50 bu/acre)
Potential use: Biodiesel
Animal ag co-product: Soybean meal
Other potential products:
Straw (1,000 lb/acre)
Biodiesel yield/ac:74 gal/acre or 9.1 million Btu
Adaptability to no-tillage: High
Existing infrastructure: High
N fertilizer Inputs: 0 lb/acre
Other Comments: Widely grown for protein on livestock farms; oil used for food and biodiesel. Good rotational crop to break pest cycles and produce nitrogen for subsequent crops. Also, soybeans are drought tolerant and can be double cropped following barley or wheat. Soybean straw can be used as direct combustion feedstock.
• Soybeans are widely grown through Mid‐Atlantic and Midwest states
• Processing plants in Northeast extract oil to produce soybean meal
• A portion of that oil is used for biodiesel production
Soybean–Adaptation
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Month Operation Inputs
April/MaySpreading fertilizer
Fertilizer, Diesel
May PlantingSeed,
Fertilizer, Diesel
MayHerbicide application
Herbicide, Diesel
October Harvest and store Diesel
Nov/April Haul to market Diesel
Soybean–Management
Price Amount Total
Soybean Price $14.00 55 bu/acre $770
Variable costs
Seed 0.41/1000
180000 $74
Fertilizer NPK + Lime $59
Pesticides $32
Other Trucking, Ins., Int., Drying$63
Fixed Costs
Land $150
Labor $30
Machinery $108
Net $254/acre
Soybean—Production Costs
Canola/RapeseedTypical PA yield: 2500 lb/acre (50 bu/acre)
Potential use: Biodiesel
Animal ag co-product: Canola meal
Other potential products:
Straw (1000 lb/acre)
Biodiesel yield/ac: 143 gal or 17.5 million Btu
Adaptability to no-tillage: Medium
Existing infrastructure: Medium
N fertilizer inputs: 100 lb/acre
Other Comments: Limited production in PA but widely grown in Europe because of high oil yield per acre and low saturated fat in oil, which contributes to high quality for biodiesel. Canola meal is high protein feed comparable to soybean meal. Winter and spring varieties exist. Winter canola is more adapted to southern half of state. Higher N requirement than soybeans.
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• Winter and spring varieties available
• Canola is widely adapted but can have difficulty competing with other crops such as wheat or soybeans. Most production is in ND
• Canola oil has a low cloud point and one of the best feedstocks for SVO or biodiesel
Canola/Rapeseed—Adaptation
Month Operation Inputs
MarchSpreading fertilizer
Fertilizer, Diesel
April PlantingSeed,
Fertilizer, Diesel
AprilHerbicide application
Herbicide, Diesel
AugustHarvest and
storeDiesel
Sept./AprilHaul to market
Diesel
Spring Canola—Management
Price Amount Total
Canola Price $0.20 2,000 lb $400
Variable costs
Seed $27
Fertilizer NPK + Lime $58
Pesticides $16
Other Trucking, Ins., Int., Drying $21
Fixed Costs
Land $75
Labor $15
Machinery $102
Total Costs 314
Net $86/acre
Canola—Production Costs
Source: http://www.ksre.ksu.edu/bookstore/pubs/mf2421.pdf
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Canola Pressing
Canola Meal
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Oilseed Economics
http://www.vsjf.org/resources/reports‐tools/oilseed‐calculatorSource:
Oilseed Economics
http://www.vsjf.org/resources/reports‐tools/oilseed‐calculator
SwitchgrassTypical PA yield: 8,000 lb/acre
Potential use:
Direct combustion (DC), cellulosic ethanol
Animal ag co-product: Aftermath grazing
Other potential products/benefits:
Wildlife habitat, bedding, absorbent
Energy yield/ac: 56.4 million Btu (DC)
Adaptability to no-tillage: High
Existing infrastructure: High
N fertilizer inputs: 0-100 lb/acre
Other Comments: Widely adaptable, especially on droughty soils. Provides excellent conservation and wildlife habitat. Can be slow to establish. Harvest schedule can impact wildlife benefits and ash content.
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Switchgrass—Management Month Operation Inputs
March HarvestFertilizer, Diesel
AprilBale and store
Diesel
MaySpread fertilizer
Seed, Fertilizer, Diesel
May/December
Haul to market
Diesel
• Switchgrass is widely adapted and has been grown from Florida to the corn belt on both productive and droughty soils
Switchgrass—Adaptation
Year 1 Years 3‐6
Yield (tons/ac) 0.75 6.0
Price ($/ton) $65 $65
Returns $49 $392
Variable Costs
Production $234 $134
Labor $11 $34
Trucking and Loading $9 $69
Total Variable Costs $254 $237
Return above Variable Costs ($205) $155
Fixed Costs $41 $75
Total Costs $295 $312
Net Return/Acre ($246) $80
Switchgrass—Production Costs
Source: http://www.uky.edu/Ag/CCD/introsheets/switchgrass.pdf
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Year 1 Years 4‐15
Yield (tons/acre) 0 7
Price ($/ton) $0 $385
Returns $49 $450
Variable Costs
Seed $80 $0
Soil Fertility $155 $136
Weed Control $53 $0
Establishment and Maintenance $140 $0
Harvesting $0 $141
Total Costs $567 $277
Net Return/Acre ($567) $108
Annual Income over 15 yr $46
Switchgrass—Production Costs
Source: http://www.newbio.psu.edu/Extension/resources.asp
Switchgrass—Marginal Land
• Low impact production system• Cost of production: $60‐80/ton and need for densification
• Competition with wood chips in Northeast• Some alternative markets include absorbents, animal bedding, mulch, wildlife cover, conservation program crop, and hunting preserve use
• Can production costs be offset with other benefits (conservation, wildlife, hunting, recreation, off season land management, subsidies)?
Switchgrass—Biomass Issues
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MiscanthusTypical PA yield: 15,000-20,000 lbs/ac/yr
Potential use: Ethanol, direct combustion (DC)
Animal ag co-product: None
Ethanol yield/acre: 350 gal or 31.5 million Btu
Energy yield/acre: 82 million Btu (DC)
Existing infrastructure: Medium
N fertilizer inputs: 50-75 lb N/ac/yr
Other Comments: Expensive to establish, rhizome availability limited. Once established likely significantly higher yielding than switchgrass.
Photo credit: University of Illinois
• Widely adapted warm season perennial grass, native to Eastern Asia, now grown in Europe and the Southern, Eastern, and Midwestern U.S.
• Although a warm season species, it can grow early in spring even at relatively low temperatures (43°F). Growth stops with autumn frost.
Miscanthus—Adaptation
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Miscanthus—ManagementMonth Operation Inputs
April Mow Diesel
April Plow site Diesel
April FertilizeFertilizer Diesel
May Plant
RhizomesDiesel
MayApply
Herbicide
Establishment Year
Current industry practice is to plant the rhizomes four inches deep and three feet apart within rows. Maintain three feet between rows. Some replanting to fill gaps may be necessary in the second year.
Source: http://www.nrcs.usda.gov/Internet/FSE_DOCUMENTS/stelprdb1045274.pdf
Miscanthus—Management
Month Operation Inputs
AprilSpread fertilizer
Seed, Fertilizer, Diesel
March HarvestFertilizer, Diesel
AprilBale and store
Diesel
May/DecemberHaul to market
Diesel
Post Establishment Years
Year 1 Years 4‐15
Yield (tons/acre) 0 10
Price ($/ton) $0 $45
Returns $0 $450
Variable Costs
Rhizomes $700 $0
Soil Fertility $155 $134
Weed Control $48 $237
Establishment and Maint. $115 $155
Harvesting $0 $75
Total Costs $1018 $312
Net Return/Acre ($1018) $80
Annual Income over 15 yrs $94
Miscanthus—Production Cost
Photo credit: http://www.newbio.psu.edu/Extension/resources.asp
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• Low impact production system—Nutrient removal for N‐P2O5‐K20 is approximately 7.5‐1.5‐5.5 lbs per ton
• Cost of production: $30‐35/ton and need for densification
• Need for buffer surrounding field to monitor and prevent spreading
Miscanthus—Biomass Issues
Shrub WillowTypical PA yield: 10,000 lb/ac/yr
Potential use: Ethanol, direct combustion (DC)
Animal ag co-product: None
Ethanol yield/ac: 350 gal or 31.5 mil Btu
Energy yield/ac: 82 mil Btu (DC)
Existing infrastructure: Medium
Other Comments: Grown in a five to ten year cycle, with annual yields potential similar to switchgrass. Can be chopped as needed for fuel source. Low annual maintenance costs. Adaptable to a wide range of soil conditions.
• Willows can grow well on marginal soils
• Soils should be 18 inches deep and not droughty or excessively wet
• Slopes should be less than 8% to facilitate harvest under winter conditions.
Willow—Adaptation
Photo credit: http://willow.cals.cornell.edu
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Willow—ManagementYear Operation Inputs
1Prepare fieldFertilize, PlantWeed Control
Cuttings, Fertilizer, Diesel
2Coppice first year plants to shrub
Diesel
5 Harvest Diesel
9 Harvest Diesel
13 Harvest Diesel
17 Harvest Diesel
21 Harvest Diesel
Photo credit: http://willow.cals.cornell.edu
Year 1 Years 4‐21
Yield (tons/acre/3 yr) 0 12
Price ($/ton) $0 $45
Returns /Harvest (Harvest: yrs 4, 7, 10, 13, 16, 19, 22)
$0 $3780
Variable Costs
Site Prep $193 $0
Planting $640 $0
Weed Control $186 $0
Other Establishment $115 $0
Harvesting $0 $2520
Total Costs $1019 $2520
Net Return/acre every 3 yr ($1019) $267
Annual Income over 21 yrs ‐$16
Willow—Production Costs
• Low impact production system
• Cost of production: $31/ton with 23 year investment
• Competition with wood chips in Northeast
• Some alternative uses
• Harvest costs can be reduced relative to crops with annual harvests
Willow Biomass Issues
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• Various options exist for growing bioenergy crops in our region
• Markets vary for these crops—be sure you have a market before investing
• Some crops have alterative uses that can add to profitability
• Co‐product values are also important for some crops such as corn and soybeans
Summary
• Based on corn ethanol experience, having a value chain that provides returns to farmer, landowner, industry, and processor is critical
• The ideal bioenergy crop has multiple uses, prices above production costs, stable long term demand, minimal environmental impact, and low carbon footprint
Summary
• There is potential to grow bioenergy feedstocksin our region
• Markets are limited for a few options, but are developing, along with alternative markets
• Developing higher yielding and lower cost production, use of marginal soil resources and higher prices could lead to more production potential
Summary
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Farm Energy IQ
Bioenergy Feedstock Production
Questions?
