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Abstract
Recent policy and research initiatives aim to make sustainable biofuel crops an important component of
the nation’s agricultural and energy sectors, yet few studies have explored potential supply response at the
farm level using survey information. This article utilizes contingent valuation (CV) data gathered from
farmers in southwestern Wisconsin to assess the region’s near-term supply response to corn stover and
switchgrass crop technologies. The ex ante supply model identifies characteristics that distinguish likely
early innovators and provides response estimates. The econometric results reveal a relatively inelastic
short-run supply, but some heterogeneity in reservation price across farm types and attitudes suggests that
spatial biofuels agglomerations or ‘hot spots’ could be pursued.