Economics of Alternative Fertilizer Supply Systems for Switchgrass Produced in Phosphorus-Deficient Soils for Bioenergy
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Economics of Alternative Fertilizer Supply Systems for Switchgrass Produced in Phosphorus-Deficient Soils for Bioenergy Feedstock Mohua Haque & Jon T. Biermacher & Maru K. Kering & John A. Guretzky Published online: 11 October 2012 # The Author(s) 2012. This article is published with open access at Springerlink.com
Abstract Limited information is available explaining the economics of supplying N and P fertilizers on established stands of switchgrass growing in phosphorus-deficient soils. The objective of this study was to determine the most economical fertilizer supply system for producing feedstock in phosphorus-deficient soil in the southern Great Plains. Data collected from field trials conducted at two locations in south-central Oklahoma along with prices quoted by local input suppliers and custom service providers and assumptions about the farm-gate price of feedstock were used to estimate expected values for production costs, gross revenue and net return to owner's labor, management, and overhead for eight fertilizer supply systems. The systems included a zero fertilizer check system (0/0), three P systems (0/34, 0/67, and 0/101), one N system (135/0), and three N and P systems (135/34, 135/67, and 135/101). Random-effects mixed ANOVA models were used to determine the effects of fertilizer system on the values of total cost and net return. For the base-case price scenario (feedstock, N and P prices of $110 Mg−1 and $1.28 and 1.17 kg−1, respectively), the 135/0 system was the most profitable system, producing 10.2 Mg of feedstock and $263 of net return per hectare. Economic results were most sensitive to the prices of feedstock, N and P. Net return was negative for all eight systems for the scenario where the farm-gate price of feedstock was M. Haque : J. T. Biermacher (*) The Samuel Roberts Noble Foundation, Inc., Ardmore, OK, USA e-mail: [email protected] M. K. Kering Virginia State University, Petersburg, VA, USA J. A. Guretzky University of Nebraska-Lincoln, Lincoln, NE, USA
relatively low ($55 Mg−1) and prices for N and P were relatively high ($2.20 kg−1). Keywords Bioenergy feedstock . Economics . Nitrogen . Phosphorus . Phosphorus-deficient soils . Switchgrass
Introduction Native to the southern Great Plains, switchgrass (Panicum virgatum L.) has been classified by agricultural scientists and public decision makers as a leading source of cellulosic feedstock for the large-scale production of bioenergy fuels such as ethanol [1, 2]. Once established, proper management of fertilizers is essential to maintain and sustain a high-quality, highyielding stand of switchgrass. At present, most of the published research regarding fertilizer management decisions associated with producing switchgrass feedstock has focused mainly on nitrogen (N) as the primary limiting nutrient [3–6]. And more to the point, the majority of these studies focused on the agronomic implications associated with fertilizer applications, but did not investigate the economic benefits and costs associated with them. Moreover, the majori
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