Corn stover for bioenergy production: Cost estimates and farmer supply response

Jena L Thompson, Purdue University

Abstract

A lot of attention is being paid to potential use of corn stover as a feedstock for bioenergy production. Consisting of the cobs, husks, stalks, leaves, and tassels of the corn plant, stover is currently used in limited quantities for erosion protection, nutrient value, animal bedding, and the like. The majority of corn stover, however, remains unused. In addition to meeting renewable energy goals, use of corn stover for energy production may provide a new source of income for corn growers. This study estimates the costs of corn stover harvest and supply, and then uses that information to estimate farm production decisions and changes to farm profit at varying corn stover prices. In this study, corn stover is collected in large round bales using a raking, baling, and staging method. Harvest cost includes payments for fuel, labor, equipment ownership and repair, net wrap, and nutrient replacement. Supply costs include storage, loading and unloading, and transport. The total cost of harvest and supply is estimated between $74.56/dry ton and $91.23/dry ton. Costs will vary considerably from farm to farm and from year to year depending on weather conditions. A linear programming model was used to estimate the willingness of corn growers to harvest corn stover at varying stover prices. Corn stover supply, farm profit, and land allocation was analyzed under multiple scenarios. At a price of $80/ton, farms in the base case harvested corn stover at a rate of 1.24 tons/acre using a 33% removal rate. At this price, stover provided enough additional profit to entice farmers to shift to more continuous corn production. Future research will be needed to determine the overall impacts of a viable stover market on corn and soybean production and price.

Degree

M.S.

Advisors

Tyner, Purdue University.

Subject Area

Alternative Energy|Agricultural economics|Energy

COinS