Benefit-cost analysis of hybrid willow crop production on agricultural land in eastern Canada: Assessing opportunities for on-farm and off-farm bioenergy use

The purpose of this study was to conduct a financial benefit-cost analysis of producing hybrid willow biomass on riparian, in-field, and high-sloped agricultural land in the eastern Canadian province of Prince Edward Island for use as an on-farm or off-farm source of renewable energy. The off-farm use analysis indicated that, at a current price of $50 per dry matter tonne (DMT−1) sold to a municipal biomass energy plant, the willow cropping system would not represent an attractive investment opportunity for farmers. Prices would have to increase to the range of $81–$116 DMT−1 (depending on the scenario considered) before such an investment would be profitable. On the other hand, the on-farm use analysis indicated that, at an estimated cost savings of $375 DMT−1 from displacing heating oil by using a biomass boiler to burn the willow chips (at a replacement cost of $56–$137 DMT−1, depending on the scenario), the willow cropping system would represent a very attractive investment opportunity for farmers. Using such a system could reduce heating costs on the farm in the range of 64–85%.