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This study evaluates the economic impacts and competitiveness of switchgrass as a dedicated bioenergy crop. It estimates production potential, assesses agricultural sector impacts, and aims to enhance synergies between agriculture and energy policies.
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ECONOMIC COMPETITIVENESS AND IMPACTS ON THE AGRICULTURAL SECTOR OF SWITCHGRASS AS A BIOENERGY DEDICATED CROP Daniel De La Torre Ugarte & Chad Hellwinckel Agricultural Policy Analysis Center University of Tennessee
Objectives • Estimate potential switchgrass production at various prices • Estimate impacts in agricultural sector • Enhance synergism between Ag and Energy Policies
Methodology • Bioenergy version of POLYSYS • Land in 8 major crops and hay • 2004 USDA baseline • Updated budgets in 2004 at 2002 prices
Switchgrass Production and Savings in Commodity Programs2005-2013
Switchgrass Production and Savings in Commodity Programs2013
Further Work on this Research • Results are sensitivity to hay production response • Need to incorporate a regional link between livestock and hay • Further review of crop costs of production
Final Remarks • Switchgrass has the potential to enhance synergisms between Ag and Energy policies • Farm income impacts from switchgrass spread widely across regions & crops • Adoption of switchgrass depends in more than price alone: logistics, institutional arrangements/contracts, risk, and others
Research sponsored by: USDA / National Research Initiative USDOE and Oak Ridge National Laboratory