Multi-farm economic analysis of perennial energy crops in Central Greece, taking into account the CAP reform

This study analyses farm level economic impacts of biomass production from perennial crops including Arundo donax L. (arundo), Miscanthus x giganteus (miscanthus), Panicum virgatum L. (switchgrass) and Cynara cardunculus L. (cardoon). Regional biomass supply curves are estimated with a dynamic, multi-farm, mathematical programming model. Micro-economic data for the model are generated from farm surveys covering 52 farms containing a total of 400 parcels, in Central Greece. The study also examines the potential effects of the Common Agricultural Policy reform in 2003 on regional biomass supply. Simulations show that the policy reform toward decoupled subsidies lowers the cost of biomass between 15 and 25 euro per tonne. Switchgrass appears to be the most attractive option, followed by cardoon and miscanthus. Due to high specific machinery cost, arundo is never preferred. Relative to the agricultural policy setting of Agenda 2000, the biomass potential increases more for farms of small economic size and farms with a higher share of cotton.