Bioenergy Incentive Options for Minnesota Farmers: A Policy Perspective

a professional paper for the Master of Science Technology and Environmental Policy degreePrograms that support farmers interested in growing perennial bioenergy crops do not currently exist in Minnesota. Perennial bioenergy production faces many hurdles technologically and market‐wise but the current social climate seems to be leading toward more concerted development in the direction of renewable energy. Cost‐sharing and Annual Rental Payment programs exist in various forms supporting other environmental objectives and they are used in this paper to project their applicability to bioenergy development specifically. Carbon markets are also discussed as a potential source of support. After considering the analysis, it seems that a functional market for selling energy crops must exist before any real change can occur, but an establishment cost‐share program would go the furthest in helping farmers get started in farming these types of crops. Getting an early start in helping farmers adopt these practices may position Minnesota in a favorable position in an impending carbon‐constrained economy