SOUTHEAST MISSOURI BIOMASS STUDY

                                                                      Ayers,      V.H. 1;   Boessen,      C.2;   Gedikogle,                                                   H.3;                        Parcell,                                          J.4;      Roach,                                                                                                       A.5

 1Agricultureand Rural Development Specialist, University of Missouri Extension, Bloomfield, MO 63825; 2Teaching Assistant Professor, University of Missouri Columbia, MO 65211; 3Assistant
 Professor of Research, Lincoln University, Jefferson City, MO 65101; 4Professor, Agriculture Economics and State Farm Management Extension, University of Missouri, Columbia, MO 65211;
                                                                       5Consultant, Value Ag. LLC, Columbia, MO, 65211



                                                                                                                 Abstract
  There has been an increased interest among farmers and business personnel in developing the agriculture biomass industry in Southeast Missouri. The Stoddard County Industrial
  Development Authority, with cooperation from University of Missouri Extension funded a biomass study, focusing on Stoddard and adjacent Missouri counties. A survey of 1755 farmers living in
  Southeast Missouri was conducted. There were 68 responses included in the final report. More than half of the respondents stated they would supply field residue for a biomass enterprise.
  Those who were not interested stated that a biomass harvest would be bad for the soil. Farmers were more interested in supplying biomass by a contractual arrangement than in becoming
  member-investors in an enterprise that converts biomass into renewable products. Most farmers preferred three year contracts to supply biomass from their farm. Some respondents were
  familiar with energy crops. They were more familiar with sweet sorghum than other crops such as triticale or miscanthus.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     60%                                          57.1%                              56.3%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  52.6%                                            51.1%
                                                                                                                                                                                                                                                                                               120%                                                                                                                                                                                                               49.6%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     50%                                                                                             47.7%




                                                                                                                                                                                                                                                                                                                                                                                                                                                  % of Residue Preferred to Remove
                                                                                                                                                                                                  No response                                                                                                                                                                                                       100.00%
                                                                                                                                                                                                      3%                                                                                       100%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     40%




                                                                                                                                                                                                                                                                      Percent of Respondents
                                                                                                                                                                                                                                                                                                 80%


 County by County Breakdown of Southeast Missouri Crop Residue Biomass                                                                                                            No
                                                                                                                                                                                                        Yes
                                                                                                                                                                                                                                                                                                 60%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     30%


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     20%
                                                                                                                                                                                 43%                                                                                                             40%
                                                                                                                                                                                                        54%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     10%
                                                                                                                                                                                                                                                                                                 20%
                                                                                                                                                                                                                                                                                                                                                                        9.09%

                                                                                                                                                                                                                                                                                                                      0%                                                                                                                                                             0%
                                                                                                                                                                                                                                                                                                                                                    I earn sufficient farm income now.                  It's not good for my ground.                                                               Corn          Soybeans         Wheat          Forage/Hay          Rice            Cotton



                                                                                                                            Would you be willing to provide                                                                                                                                    Why aren’t you interested in providing                                                                                                                                    Percent of residue you would prefer to remove
                                                                                                                            field residue for bioenergy production?                                                                                                                            field residue for bioenergy production?                                                                                                                                   From field.


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    No
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 response
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    6%
                                                                                                                                                                                                                                                                                                                                                                                              No
                                                                                                                                                                                          No                                                                                                                                                                                               response
                                                                                                                                                                                       response                                                                                                                                                                                              12%
                                                                                                                                                                                         10%

                                                                                                                                                                                                         Yes                                                                                                                                                                                                                                                                                                                 No
                                                                                                                                                                                                         38%                                                                                                                                                              No                                                                                                                                                32%
                                                                                                                                                                                                                                                                                                                                                                                                Yes
                                                                                                                                                                                                                                                                                                                                                                         54%                                                                                                                                                                      Yes
                                                                                                                                                                                                                                                                                                                                                                                                34%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  62%
                                                                                                                                                                                       No
                                                                                                                                                                                      52%




                                                                                                                            Would you be willing to become a member                                                                                                                            Would you be willing to become a member                                                                                                                                                          Would you be willing to contract to a
                                                                                                                            investor of a business that converts biomass                                                                                                                       investor of a firm that converts biomass                                                                                                                                                         processor if given adequate information
                                                                                                                            to methane and electricity?                                                                                                                                        to ethanol?                                                                                                                                                                                      And compensation?




                                                                                                                                                                     70%                                                                                                                                                                14                      13                                                                                                                              $300

                                                                                                                                                                                            58.1%                                                                                                                                                                                                                                                                                                                                                                    $250




                                                                                                                                                                                                                                                                                                Respondents Familiar with Energy Crop
                                                                                                                                                                     60%                                                                                                                                                                12
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                $250
A county-by-county breakdown of biomass resources available in the project region. In total, the region has access to                                                50%                                                                                                                                                                10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          $221
                                                                                                                             Percent of Respondents




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                $200                                                    $185
more than 768 million bone dry tons of biomass feedstock. Of the counties included in the project region, Stoddard,                                                  40%                                                                                                                                                                    8                                                              7




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       $/acre
                                                                                                                                                                            32.6%                                                                                                                                                                                                                                                                                                               $150                      $138          $137
                                                                                                                                                                                                                                                                                                                                                                                     6
Mississippi, New Madrid and Scott counties in the Missouri have the highest amounts of available biomass residues.                                                   30%                                                                                                                                                                    6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                $100
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    $100

                                                                                                                                                                     20%                                                                                                                                                                    4                                                                                       3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 $50
                                                                                                                                                                     10%                                      7.0%                                                                                                                          2
                                                                                                                                                                                                                                                         2.3%
                                                                                                                                                                                                                              0.0%          0.0%                                                                                                                                                                                                                                                  $0
                                                                                                                                                                      0%                                                                                                                                                                    0
                                                                                                                                                                                                                                                                                                                                                      Sweet sorghum              Miscanthus             Triticale             Others*                                                                     Corn        Soybeans       Wheat         Hay/Forage        Rice           Cotton
                                                                                                                                                                           One year      Three years      Five years       Seven years    Nine years   More than
                                                                                                                                                                                                                                                       nine years



Distribution of Total Biomass Resources                                                                                     What length of contract would you prefer?                                                                                                                                               Energy crops in which respondents were familiar.                                                                                                                            Respondents’ average expected compensation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                per acre for harvesting, storing and providing
           in Study Area                                                                                                                                                                                                                                                                                                                                                                                                                                                                        field residue to a bioenergy producer.
                                                                                                                                                                      18                                                                                   17
            Logging Residues
                 0.31%                                                                                                                                                16                                15                                                                                                                                      $300                                                                                                                                            $140

                                                                                                                                                                                                                                                                                                                                                                                                                                $250                                                                                                                                        $119
                                                                                                                                                                      14                                                                                                                                                                                                                                                                                                                        $120
                                                                                                                                                                                                                                                                                                                                                $250                                                                                                                                                                                                       $109
                                                                                                                                                                            12                                                                                                                                                                                   $221
                                                                                                                                                                      12
                                                                                                                                             Number of Respondents




                                                                                                                                                                                                                                     11                                                                                                                                                                                                                                                         $100
                                                                                                                                                                                                                                                                                                                                                $200                                                             $185
                       Wheat                                                                                                                                          10                                                                                                                                                                                                                                                                                                                                                    $79            $77
                       9.31%                                                                                                                                                                                                                                                                                                                                                                                                                                                                     $80      $71




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       $/acre
                                                                                                                                                                                                                                                                                                                                   $/acre




                                                                                                                                                                                                                                                                                                                                                $150                             $138            $137
                                                                                                                                                                       8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 $60
                                                                                                                                                                                                                                                 6                                                                                                                                                                                        $100
                                                                                                                                                                       6                                               5                                                                                                                        $100
                                              Corn                                                                                                                                                                                                                                                                                                                                                                                                                                               $40                                                                                         $35
                                             34.16%                                                                                                                    4
                                                                                                                                                                                                                                                                                                                                                 $50
                                                                                                                                                                                            2                                                                                                                                                                                                                                                                                                    $20
                                                                                                                                                                       2
                                                                                                                                                                                                                                                                                                                                                   $0                                                                                                                                             $0
                                                                                                                                                                       0                                                                                                                                                                                         Corn           Soybeans        Wheat          Hay/Forage       Rice     Cotton                                                           Corn         Soybeans           Wheat         Forage/Hay           Rice          Cotton
                                                                                                                                                                           Same        5% more        10% more 15% more 20% more               Never   No response
            Soybeans
             42.04%



                                         Corn Cobs                                                                      Respondents expected profitability of biomass com-                                                                                                                                                              Respondents average expected compensation per acres                                                                                            Respondents average expected compensation
                                          11.94%
                                                                                                                        pared to corn production.                                                                                                                                                                                       for harvesting, storing and providing field residue                                                                                            for providing field residue, not including
                                                                                                                                                                                                                                                                                                                                        to a bioenergy producer.                                                                                                                        harvesting and storing residue.
                                          Cotton
                               Sorghum    0.02%
                                2.23%
                                                                                                                                                            $160            $150
                                                                                                                                                                                                                                                                                                                                                          $60        $56
                                                                                                                                                            $140                                                                               $131
                                                                                                                        .                                                                                                                                                                                                                                                                                                                                                                                           No response
                                                      Use of Burning by Farmers Surveyed                                                                    $120
                                                                                                                                                                                                                                                                                                                                                          $50
                                                                                                                                                                                                                                                                                                                                                                                                                              $41
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       10%

                                                                                                                                                            $100                                                                                                                                                                                          $40                            $35
                                                                                                                                                                                                                                                                                                                                                                                                                                         $33
                                                                                                                                $/acre




                                                                                                                                                                                                                                $76                                                                                                                                                                       $31
                                                                                                                                                                                                                                                                                                                                                 $/acre




                                                                                                                                                                     $80                                                                                                                                                                                                                                                                                                                                                                            Yes
                                                                                                                                                                                                                                                                $65                                                                                       $30
                                                                                                                                                                                                $59            $60                                                                                                                                                                                                                                                                                                                                  37%
                                                                                                                                                                     $60
                                                                                                                                                                                                                                                                                                                                                          $20

                                                             No burning                    Some burning                                                              $40

                                                                                                                                                                     $20                                                                                                                                                                                  $10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   No
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  53%



    Corn                                                         28                             13                                                                    $0
                                                                                                                                                                            Corn            Soybeans          Wheat          Forage/Hay        Rice         Cotton
                                                                                                                                                                                                                                                                                                                                                           $0
                                                                                                                                                                                                                                                                                                                                                                     Corn            Soybeans            Wheat              Rice        Cotton



    Soybeans                                                     30                             0
                                                                                                                        Respondents’ estimated value of field residue harvest                                                                                                                                                           Average value respondents place on N,P and K removed                                                                                               Would you be willing to become a member
    Wheat                                                        18                             11                      and storage.                                                                                                                                                                                                    from field residue.                                                                                                                                investor in a custom harvesting business?


    Forage/Hay                                                   11                             0
    Rice                                                         9                              3
    Cotton                                                       12                             0

Ayers 2012 charleston poster

  • 1.
    SOUTHEAST MISSOURI BIOMASSSTUDY Ayers, V.H. 1; Boessen, C.2; Gedikogle, H.3; Parcell, J.4; Roach, A.5 1Agricultureand Rural Development Specialist, University of Missouri Extension, Bloomfield, MO 63825; 2Teaching Assistant Professor, University of Missouri Columbia, MO 65211; 3Assistant Professor of Research, Lincoln University, Jefferson City, MO 65101; 4Professor, Agriculture Economics and State Farm Management Extension, University of Missouri, Columbia, MO 65211; 5Consultant, Value Ag. LLC, Columbia, MO, 65211 Abstract There has been an increased interest among farmers and business personnel in developing the agriculture biomass industry in Southeast Missouri. The Stoddard County Industrial Development Authority, with cooperation from University of Missouri Extension funded a biomass study, focusing on Stoddard and adjacent Missouri counties. A survey of 1755 farmers living in Southeast Missouri was conducted. There were 68 responses included in the final report. More than half of the respondents stated they would supply field residue for a biomass enterprise. Those who were not interested stated that a biomass harvest would be bad for the soil. Farmers were more interested in supplying biomass by a contractual arrangement than in becoming member-investors in an enterprise that converts biomass into renewable products. Most farmers preferred three year contracts to supply biomass from their farm. Some respondents were familiar with energy crops. They were more familiar with sweet sorghum than other crops such as triticale or miscanthus. 60% 57.1% 56.3% 52.6% 51.1% 120% 49.6% 50% 47.7% % of Residue Preferred to Remove No response 100.00% 3% 100% 40% Percent of Respondents 80% County by County Breakdown of Southeast Missouri Crop Residue Biomass No Yes 60% 30% 20% 43% 40% 54% 10% 20% 9.09% 0% 0% I earn sufficient farm income now. It's not good for my ground. Corn Soybeans Wheat Forage/Hay Rice Cotton Would you be willing to provide Why aren’t you interested in providing Percent of residue you would prefer to remove field residue for bioenergy production? field residue for bioenergy production? From field. No response 6% No No response response 12% 10% Yes No 38% No 32% Yes 54% Yes 34% 62% No 52% Would you be willing to become a member Would you be willing to become a member Would you be willing to contract to a investor of a business that converts biomass investor of a firm that converts biomass processor if given adequate information to methane and electricity? to ethanol? And compensation? 70% 14 13 $300 58.1% $250 Respondents Familiar with Energy Crop 60% 12 $250 A county-by-county breakdown of biomass resources available in the project region. In total, the region has access to 50% 10 $221 Percent of Respondents $200 $185 more than 768 million bone dry tons of biomass feedstock. Of the counties included in the project region, Stoddard, 40% 8 7 $/acre 32.6% $150 $138 $137 6 Mississippi, New Madrid and Scott counties in the Missouri have the highest amounts of available biomass residues. 30% 6 $100 $100 20% 4 3 $50 10% 7.0% 2 2.3% 0.0% 0.0% $0 0% 0 Sweet sorghum Miscanthus Triticale Others* Corn Soybeans Wheat Hay/Forage Rice Cotton One year Three years Five years Seven years Nine years More than nine years Distribution of Total Biomass Resources What length of contract would you prefer? Energy crops in which respondents were familiar. Respondents’ average expected compensation per acre for harvesting, storing and providing in Study Area field residue to a bioenergy producer. 18 17 Logging Residues 0.31% 16 15 $300 $140 $250 $119 14 $120 $250 $109 12 $221 12 Number of Respondents 11 $100 $200 $185 Wheat 10 $79 $77 9.31% $80 $71 $/acre $/acre $150 $138 $137 8 $60 6 $100 6 5 $100 Corn $40 $35 34.16% 4 $50 2 $20 2 $0 $0 0 Corn Soybeans Wheat Hay/Forage Rice Cotton Corn Soybeans Wheat Forage/Hay Rice Cotton Same 5% more 10% more 15% more 20% more Never No response Soybeans 42.04% Corn Cobs Respondents expected profitability of biomass com- Respondents average expected compensation per acres Respondents average expected compensation 11.94% pared to corn production. for harvesting, storing and providing field residue for providing field residue, not including to a bioenergy producer. harvesting and storing residue. Cotton Sorghum 0.02% 2.23% $160 $150 $60 $56 $140 $131 . No response Use of Burning by Farmers Surveyed $120 $50 $41 10% $100 $40 $35 $33 $/acre $76 $31 $/acre $80 Yes $65 $30 $59 $60 37% $60 $20 No burning Some burning $40 $20 $10 No 53% Corn 28 13 $0 Corn Soybeans Wheat Forage/Hay Rice Cotton $0 Corn Soybeans Wheat Rice Cotton Soybeans 30 0 Respondents’ estimated value of field residue harvest Average value respondents place on N,P and K removed Would you be willing to become a member Wheat 18 11 and storage. from field residue. investor in a custom harvesting business? Forage/Hay 11 0 Rice 9 3 Cotton 12 0