@article{Popp:53501,
      recid = {53501},
      author = {Popp, Michael P. and Nalley, Lawton Lanier and Vickery,  Gina B.},
      title = {Expected Changes in Farm Landscape with the Introduction  of a Biomass Market},
      address = {2008},
      number = {810-2016-52548},
      pages = {15},
      year = {2008},
      abstract = {This study examines how the introduction of dedicated  energy crops—switchgrass
and forage sorghum—may affect  Arkansas’ crop allocation decisions. The study captures  crop
production practices at the county or crop reporting  district level. Results are in a static
equilibrium  framework and limited to a one-year ahead forecast. The  model’s predictive success
was evaluated by comparing 2007  model results with no energy crop production to  actual
acreages harvested. Switchgrass entered land use at  approximately $25 and $35/dry ton in 2007
and 2008,  respectively. Higher 2008 commodity prices for traditional  crops caused lower
switchgrass acreage peaks compared to  2007. Further, at higher biomass price levels—$45  to
$55/dry ton depending on year and whether or not land  charges were applied—the annual energy
crop, forage  sorghum, surpassed switchgrass acreage primarily as a  result of its higher yield.
Since acreage supply response  is quite elastic, biorefineries will be exposed to  significant price
risk, especially at higher biomass  prices, when the annual energy crop exceeds  perennial
switchgrass in acreage. Finally, the study  examined impacts of biomass production on resource
use.  Regardless of ownership scenario, in 2007 and 2008, a 13  and 10 percent reduction,
respectively, in irrigation water  per acre occurred when the price of switchgrass increases  from
$25 to $65. Labor and fuel use showed no such trends.  This is a significant finding, given
diminishing water  resources for a large portion of the Arkansas crop  producing region.},
      url = {http://ageconsearch.umn.edu/record/53501},
      doi = {https://doi.org/10.22004/ag.econ.53501},
}