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In the spring of 2019, U.S. agriculture experienced a record high number of prevented planted acres primarily due to historic rainfall across large portions of the Corn Belt and Mid-South. Producers of corn, upland cotton, soybean, and wheat were impacted with a substantial loss of revenue due to no crops being produced and marketed. With about 11.4 million acres of corn not planted, foregone gross revenue from crop sales likely exceeded $6 billion alone. Instead of focusing on the loss of producers’ incomes as a result of prevented planted acres, our analysis focuses on the economic impacts, due to lost sales, for firms that provide inputs to farmers. Acres prevented from planting resulted in producers not incurring typical expenditures for planting and post planting inputs such as seed, crop nutrients, and crop protection (herbicides, insecticides, fungicides, etc.). Agricultural input manufacturers, wholesalers, and retailers do not have similar opportunities to insure against foregone sales and have received no disaster assistance payments. Normally, the large geographic footprint of many of these firms mitigates the impact of localized weather effects. However, given the widespread nature of the wet spring, these firms were negatively affected across Corn Belt and Mid-South representing a substantial production area. Regional economic impact of declines in sales by agricultural input providers due to wet weather-based prevented plantings on 13.1 million acres. Direct sale losses of $2.9 billion led to $4.5 billion losses in total sales that were concentrated in parts of Minnesota, South Dakota, and Illinois.

This research developed a regional economic model to estimate the ex-ante impacts of biofuel production on the economy of the southeastern United States. The analysis focuses on biofuels produced using biochemical and pyrolysis technologies. The primary feedstocks considered include switchgrass (Panicum virgatum) and poplar (Populus spp.). The economic analysis modifies the Impact Analysis for Planning (IMPLAN) input-output model to determine the macroeconomic impacts of a mature industry producing biofuels using these technologies and feedstocks. Optimal facility locations are determined using a site locator model that minimizes the costs of procuring feedstock. Given a change in the land use caused by industry demand for feedstock, shocks to the farm economy are forward-linked to sectors supporting biofuel production. Key economic indicators analyzed include changes in employment and value added to the economy. System output is analyzed using a nonparametric bootstrap procedure to simulate the distributions of the impacts. The null hypothesis is that the economic impacts following the introduction of the industries are not different from baseline economic activity. Findings suggest that the net changes in employment and value added to the regional economy are positive, but modest. For example, job increases attributed to the advancement of the industries analyzed range between 0.18% and 0.95%. Total value added to the regional economy ranged between 0.15% and 0.83%.

One of the major motivations to establish a biobased energy sector in the United States is to promote economic development in the rural areas of the nation. This study estimated the economic impact of investing and operating a switchgrass-based ethanol plant in East Tennessee. Applying a spatially oriented mixed-integer mathematical programming model, we first determined the location of biorefinery, feedstock draw area, and the resources used in various feedstock supply systems by minimizing the total plant gate cost of feedstock. Based on the model output, an input-output model was utilized to determine the total economic impact, including direct, indirect, and induced effects of feedstock investment and annual production in the study region. Moreover, the economic impact of ethanol plant investment and annual conversion operation was analyzed. Results suggest that the total annual expenditures in an unprotected large round bale system generated a total $92.5 million in economic output within the 13 counties of East Tennessee. In addition, an estimated $234 million in overall economic output was generated through the operation of the biorefinery. This research showed that the least-cost configuration of the feedstock supply chain influenced the levels and types of economic impact of biorefinery.

Much attention has been paid to switchgrass’s potential for conversion to cellulosic ethanol and its ability to sequester soil organic carbon (SOC). Soil samples from switchgrass farms in East Tennessee were collected at depths of 0–5, 15–30, 30–60, and 60–90 cm and tested for SOC over a 4-year period (2008–2011). Results showed no differences (p ≥ 0.05) in SOC from 2008 to 2011. However, when comparing the initial samples to year four, SOC decreases ranging from 0.04 to 0.47 t ha−1 were observed in the 5–10 and 10–15 cm soil depths. While SOC increased with time in the 90 to 120 cm layer, this increase was not significant at p = 0.05 but was significant at the 0.10 level. Following three full growing seasons, switchgrass’s potential to sequester carbon comes at deeper soil depths due to its vast root structure. Greater levels of carbon were present in soil previously no-tilled compared to that previously under conventional tillage; however, neither gained or lost a significant amount of SOC by year four. Alfisols were the only taxonomic category that had a significant increase in SOC by year four. Green beans were the only previously produced crop that had a significant positive effect on sequestering carbon. Increases in switchgrass yield were correlated to SOC.

The Southeastern United States depends on coal to supply 60% of its electricity needs. The region leads in CO2 emissions and ranks second in emissions of SO2 and NO2. Compared with coal, biomass feedstocks have lower emission levels of sulfur or sulfur compounds and can potentially reduce nitrogen oxide emissions. This study examines the economic impacts of cofiring biomass feedstocks with coal in coal-fired plants under three emission credit and two cofiring level scenarios. Economic impacts are estimated for producing, collecting, and transporting feedstock; retrofitting coal-fired utilities for burning feedstock; operating cofired utilities; and coal displaced from burning the feedstock.

Conversion of poultry litter to energy can serve as a renewable energy source and provide an alternative to land application in areas where poultry production is intensive. Economies of size may limit a farmer's ability to economically use on-farm conversion. Capital costs can be spread across several poultry farmers to convert poultry litter to energy in a centralized facility. This research determined influences on the amount of litter poultry producers will to sell to a centralized conversion facility, on their willingness to invest in a conversion cooperative, and on the prices for litter required to divert litter from current uses.

Analysis of the potential to supply 25% of projected 2025 U.S. transportation fuels indicates sufficient biomass resources are available to meet increased demand while simultaneously meeting food, feed, and export needs. Corn and soybeans continue to be important feedstocks for ethanol and biodiesel production, but cellulose feedstocks (agricultural crop residues, energy crops such as switchgrass, and forestry residues) will play a major role. Farm income increases, mostly because of higher crop prices. Increased crop prices increase the cost of producing biofuels.