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Proceedings available at: www.extension.org/67646
In recent years, sharply rising costs of inorganic fertilizers have contributed to an increased demand for manure and compost in crop production acreage, transforming cattle manure from a valueless waste to a viable alternative to commercial fertilizer. If additional demand for manure as a bio-fuel were to arise manure could take on two distinct values, a fertilizer value and a fuel value. This potential “dual” value of manure begs several questions. What would the fertilizer and fuel markets of manure look like? Is there enough manure supply for the markets to operate independently? If not, which market would prevail? In essence, how, if at all, would manure’s potential value as a bio-fuel distort the traditional Panhandle manure market? A modeling framework was developed to assess the potential impacts of a manure-fired ethanol plant on the existing Texas Panhandle manure fertilizer market. Two manure-allocation runs were performed using a spreadsheet model. Run #1 allocated all available manure from dairies and feedlots to cropland as manure fertilizer; run #2 first allocated fuel manure to the ethanol plant and then allocated the remaining manure to cropland. Both model runs assumed a time horizon of one year and no antecedent nutrients in cropland soils. Other constraints included only irrigated acreages received manure and no supplemental fertilizer was used. The model revealed a 6.4% increase in cost per acre of fertilizing with manure for fields whose nutrient requirements were fully satisfied in both runs. The increase in cost per acre was likely due to an increase in hauling distances attributed to fewer CAFOs available for fertilizer manure. The model is not presented as a dynamic, systems model, but rather a static model with the potential to be incorporated into a more dynamic systems-based modeling environment. Suggestions for further model development and expansion including GAMS integration are presented.