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.

Related Articles


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 December 21, 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 December 21, 2014).

Share This


More From ScienceDaily



More Plants & Animals News

Sunday, December 21, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Researchers Test Colombian Village With High Alzheimer's Rates

Researchers Test Colombian Village With High Alzheimer's Rates

AFP (Dec. 19, 2014) In Yarumal, a village in N. Colombia, Alzheimer's has ravaged a disproportionately large number of families. A genetic "curse" that may pave the way for research on how to treat the disease that claims a new victim every four seconds. Duration: 02:42 Video provided by AFP
Powered by NewsLook.com
Monarch Butterflies Descend Upon Mexican Forest During Annual Migration

Monarch Butterflies Descend Upon Mexican Forest During Annual Migration

Reuters - Light News Video Online (Dec. 19, 2014) Millions of monarch butterflies begin to descend onto Mexico as part of their annual migration south. Rough Cut (no reporter narration) Video provided by Reuters
Powered by NewsLook.com
The Best Protein-Filled Foods to Energize You for the New Year

The Best Protein-Filled Foods to Energize You for the New Year

Buzz60 (Dec. 19, 2014) The new year is coming and nothing will energize you more for 2015 than protein-filled foods. Fitness and nutrition expert John Basedow (@JohnBasedow) gives his favorite high protein foods that will help you build muscle, lose fat and have endless energy. Video provided by Buzz60
Powered by NewsLook.com
Birds Might Be Better Meteorologists Than Us

Birds Might Be Better Meteorologists Than Us

Newsy (Dec. 19, 2014) A new study suggests a certain type of bird was able to sense a tornado outbreak that moved through the U.S. a day before it hit. Video provided by Newsy
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:

Strange & Offbeat Stories


Plants & Animals

Earth & Climate

Fossils & Ruins

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