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| Title: | Economic Impacts of Establishing Short Rotation Woody Crops to Support Energy Production in Minnesota |
| Authors: | Lazarus, William F.
Tiffany, Douglas G. |
| Authors (Email): | Lazarus, William F. (wlazarus@umn.edu)
Tiffany, Douglas G. (tiffa002@umn.edu) |
| Keywords: | Hybrid Poplar
SRWC
IMPLAN
economics
energy
ethanol
OSB |
| Issue Date: | 2009-01 |
| Series/Report no.: | Staff Paper
P09-2 |
| Abstract: | The utilization of short rotation woody crops (SRWC) to produce wood on marginal crop
and pasture land could greatly enhance the production of wood for various uses in
Minnesota with utilization for energy being of current interest. SRWC involves the more
intensive application of inputs on more valuable land than naturally regenerated forests
that currently supply the bulk of the forest products industry in Minnesota. Breeding
efforts to improve productivity and disease resistance in hybrid poplar species are
making the technology of SRWC competitive with agricultural uses of marginal land.
This study models the economic impact of a potential shift in use of the land resource by
replacing production of hay and pasture that provides feed for cow-calf beef operations
in northwest and west central Minnesota with SRWC. Regional economic impacts of
such a shift are measured with established input-output techniques, using the software
tool IMPLAN. To complete this analysis, the magnitudes and sectors of expenditures
needed to produce either beef calves or hybrid poplar plantations were compared using
farm records and hybrid poplar budgets. Construction of a $175 million energy
conversion facility capable of making 44 million gallons of ethanol and 7.6 million gallons
of mixed alcohols by catalytic means following gasification would result in creation of
2,412 jobs during the construction period, with $158 million in value-added (mainly
employee compensation and business taxes). Operation of the facility after the end of
construction, if supported by 200,000 acres of hybrid poplar production, would not
change the number of jobs very much compared with using the land for cow-calf
operations. However, the SRWC-related jobs would likely be at higher average salary
levels and business tax collections would be higher, for a value-added increase of $80
million annually. In addition to greater wood supplies to support the forest products
industry, logging pressures may be reduced on public forest land as a consequence of
greater deployment of technology and methods that can result in production per acre
that is eight to ten-fold greater than naturally regenerated forests. |
| URI: | http://purl.umn.edu/46869 |
| Institution/Association: | University of Minnesota>Department of Applied Economics>Staff Papers |
| Total Pages: | 26 |
| Collections: | Staff Papers
|
Files in This Item:
| File |
Description |
Size | Format |
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| p09-02r.pdf | | 132Kb | PDF | View/Open |
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