Comparative economic analysis between bioenergy and forage types of switchgrass for sustainable biofuel feedstock production: A DEA and cost-benefit analysis approach

Authors: ARSHAD, MUHAMMAD UMER - University Of Illinois; Archer, David; WASONGA, DANIEL - University Of Illinois; NAMOI, NICTOR - University Of Illinois; BOE, ARVID - South Dakota State University; Mitchell, Robert; HEATON, EMILY - University Of Illinois; KHANNA, MADHU - University Of Illinois; LEE, DOKYOUNG - University Of Illinois

Submitted to: Global Change Biology Bioenergy
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 1/5/2025
Publication Date: 1/24/2025
Citation: Arshad, M., Archer, D.W., Wasonga, D., Namoi, N., Boe, A., Mitchell, R., Heaton, E., Khanna, M., Lee, D. 2025. Comparative economic analysis between bioenergy and forage types of switchgrass for sustainable biofuel feedstock production: A DEA and cost-benefit analysis approach. Global Change Biology Bioenergy. https://doi.org/10.1111/gcbb.70020.
DOI: https://doi.org/10.1111/gcbb.70020

Interpretive Summary: Grasses like switchgrass can be used to produce biofuels for airplanes. However, farmers are not likely to grow these grasses unless they are profitable to produce. The profitability of switchgrass production was measured using field data collected from five sites in Illinois, Nebraska, Iowa, and South Dakota. The study included several different varieties of switchgrass and using different amounts of nitrogen fertilizer. Results showed that highest profits occurred with different varieties at different locations. While the highest fertilizer application was most profitable at most sites, it was more profitable to apply less fertilizer at the Brighton, Illinois site. This study provides useful information for farmers in making management decisions for profitable switchgrass production.

Technical Abstract: The capacity to produce switchgrass efficiently and cost-effectively across diverse environments can be pivotal in achieving the short and medium-term Sustainable Aviation Fuel targets set by the U.S. Department of Energy. This study evaluated the economic performance of forage- and bioenergy-type switchgrass cultivars and their response to N fertilization under diverse marginal environments across the U.S. Midwest that included Illinois (IL), Iowa (IA), Nebraska (NE), and South Dakota (SD). Data Envelopment Analysis (DEA) was used to evaluate the efficiency of 23 Decision-Making Units (DMUs) — cultivar types and N-fertilization rates combinations — while a cost-benefit analysis calculated their profitability over five years. Results show that two energy-type cultivars – ‘Independence’ and ‘Liberty,’ were superior economically to the forage cultivars. Independence performed best with the highest profit margin when fertilized at 56 kg N ha-1, particularly in U.S. hardiness zone 6a (Urbana, IL). Liberty exhibited the highest profit margins in hardiness zone 5b (Madrid, IA, and Ithaca, NE) at 56 kg N ha-1 and showed exceptional profitability with 28 kg N ha-1 in hardiness zone 6b (Brighton, IL). Switchgrass cultivar ‘Carthage’ showed better efficiency score and profitability results in hardiness zone 4b (South Shore, SD) at 56 kg N ha-1. The profit trends observed in current study sites may indicate broader patterns across similar U.S. hardiness zones. This study provides valuable insights for decision-makers to optimize input strategies for biomass production of bioenergy switchgrass to meet renewable energy demands.