Economic Analysis of Energy Crop Production in the U.S. - Location, Quantities, Price, and Impacts on Traditional Agricultural Crops

POLYSYS is used to estimate US locations where, for any given energy crop price, energy crop production can be economically competitive with conventional crops. POLYSYS is a multi-crop, multi-sector agricultural model developed and maintained by the University of Tennessee and used by the USDA-Economic Research Service. It includes 305 agricultural statistical districts (ASD) which can be aggregated to provide state, regional, and national information. POLYSYS is being modified to include switchgrass, hybrid poplar, and willow on all land suitable for their production. This paper summarizes the preliminary national level results of the POLYSYS analysis for selected energy crop prices for the year 2007 and presents the corresponding maps (for the same prices) of energy crop production locations by ASD. Summarized results include: (1) estimates of energy crop hectares (acres) and quantities (dry Mg, dry tons), (2) identification of traditional crops allocated to energy crop production and calculation of changes in their prices and hectares (acres) of production, and (3) changes in total net farm returns for traditional agricultural crops. The information is useful for identifying areas of the US where large quantities of lowest cost energy crops can most likely be produced