Analysis of factors affecting willingness to produce switchgrass in the southeastern United States

The Energy Independence and Security Act of 2007 mandates that by 2022 at least 1.36 × 1011 L of fuel ethanol be produced in the United States, with at least 6.06 × 1010 L being derived from lignocellulosic biomass. However, the market for cellulosic biofuels is still developing and little is known about the willingness of agricultural producers to grow dedicated energy crops. While there have been some studies done on factors that determine farmersʹ willingness to produce switchgrass, these have been localized in nature and largely focused on factors other than price. This study analyzes the factors that influence interest among producers in the 12 southeastern U.S. states in growing switchgrass as a biomass feedstock and the share of farmland interested producers would be willing to devote to switchgrass production. The results suggest that about two-thirds of the producers in the region have some interest in growing switchgrass. Among those who are interested and willing to accept the hypothetical price, the predicted land conversion share is 35.8% or 56 ha per farm. At these rates, a commercial scale bio-refinery in the southeast might have to purchase switchgrass from as many as 567 different producers.