Featured Research

from universities, journals, and other organizations

Economic Analysis Of Returns From Biomass Crops

Date:
February 26, 2009
Source:
Teagasc
Summary:
The payback period from investing in willow as an energy crop is 16 years and for miscanthus is nine years, according to a new article by scientists who have been analysing the returns from willow and miscanthus production in Ireland.

The payback period from investing in willow as an energy crop is 16 years and for miscanthus is nine years, according to an article by Daragh Clancy and colleagues in the Teagasc Rural Economy Research Centre and UCD, who have been analysing the returns from willow and miscanthus production in Ireland.

Farmers who diversify into biomass crops can receive establishment grants to offset part of the initial set-up costs.

The research addresses some of the information deficit about the economics of biomass crops in Ireland. They found that, given realistic assumptions and costings, both willow (1.62%) and miscanthus (10.15%) generate positive internal rates of return and can, therefore, be considered financially viable.

However, at least in the case of willow, the additional return is probably too low for most farmers to invest in this enterprise, while foregoing average returns from a conventional enterprise. Miscanthus consistently outperformed willow in terms of investment performance. Consequently, based on these results, miscanthus is most likely to be the biomass crop of choice.

The price level is also highly uncertain as the market for energy crops in Ireland is still in its infancy. Moreover, the lengthy production lifespan of energy crops serves to heighten the level of risk associated with key parameters. Uncertainty about critical variables such as the annual yield level and the energy price make it difficult to accurately calculate the returns of such investments. However, ongoing research projects in Teagasc Oak Park Crops Research Centre are addressing these knowledge deficits.

“Accordingly, it can be expected that the risk-averse nature of many farmers is likely to hinder widespread adoption during the pioneer stage of the bioenergy market in Ireland. More widespread adoption is only likely when the economic merits of these crops have been proven over an extended period,” concluded Clancy.

This article was featured in 'TResearch', Volume 4, Number 1, Spring 2009.


Story Source:

The above story is based on materials provided by Teagasc. Note: Materials may be edited for content and length.


Cite This Page:

Teagasc. "Economic Analysis Of Returns From Biomass Crops." ScienceDaily. ScienceDaily, 26 February 2009. <www.sciencedaily.com/releases/2009/02/090226105507.htm>.
Teagasc. (2009, February 26). Economic Analysis Of Returns From Biomass Crops. ScienceDaily. Retrieved September 16, 2014 from www.sciencedaily.com/releases/2009/02/090226105507.htm
Teagasc. "Economic Analysis Of Returns From Biomass Crops." ScienceDaily. www.sciencedaily.com/releases/2009/02/090226105507.htm (accessed September 16, 2014).

Share This



More Plants & Animals News

Tuesday, September 16, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Some Tobacco Farmers Thrive Amid Challenges

Some Tobacco Farmers Thrive Amid Challenges

AP (Sep. 16, 2014) The South's tobacco country is surviving, and even thriving in some cases, as demand overseas keeps growers in the fields of one of America's oldest cash crops. (Sept. 16) Video provided by AP
Powered by NewsLook.com
Scientists Given Rare Glimpse of 350-Kilo Colossal Squid

Scientists Given Rare Glimpse of 350-Kilo Colossal Squid

AFP (Sep. 16, 2014) Scientists say a female colossal squid weighing an estimated 350 kilograms (770 lbs) and thought to be only the second intact specimen ever found was carrying eggs when discovered in the Antarctic. Duration: 00:47 Video provided by AFP
Powered by NewsLook.com
Raw: Scientists Examine Colossal Squid

Raw: Scientists Examine Colossal Squid

AP (Sep. 16, 2014) Squid experts in New Zealand thawed and examined an unusual catch on Tuesday: a colossal squid. It was captured in Antarctica's remote Ross Sea in December last year and has been frozen for eight months. (Sept. 16) Video provided by AP
Powered by NewsLook.com
Ivorians Abandon Monkey Pets in Fear Over Ebola Virus

Ivorians Abandon Monkey Pets in Fear Over Ebola Virus

AFP (Sep. 16, 2014) Since the arrival of Ebola in Ivory Coast, Ivorians have been abandoning their pets, particularly monkeys, in the fear that they may transmit the virus. Duration: 00:47 Video provided by AFP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

    Environment News

      Technology News



      Save/Print:
      Share:

      Free Subscriptions


      Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

      Get Social & Mobile


      Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

      Have Feedback?


      Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
      Mobile: iPhone Android Web
      Follow: Facebook Twitter Google+
      Subscribe: RSS Feeds Email Newsletters
      Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins