If the Biomass Project is successful, how much will producers be paid for their switchgrass?
As mentioned above, the cost of growing dedicated energy crops such as switchgrass and other grasses is currently greater than the cost of other sources of energy such as coal or wind. ISU researchers have worked with cooperating producers to determine the costs associated with growing switchgrass for biomass production. While these costs can vary considerably with such factors as land value, yield, and alternative land uses, the results of this work indicate that the range in costs for biomass production is from about $41 to $75 per ton. Again, Biomass Project activities include efforts to increase yields and decrease production costs as well as the development of markets for biomass generated electricity, tax credits for the use of biomass fuel, and opportunities for biomass production on land in CRP.
