Progress 01/01/12 to 12/31/12
Outputs
OUTPUTS: The revenue and cost of producing a gallon of biofuel (ethanol or biodiesel) from corn, corn stover, soybeans, switchgrass and miscanthus were estimated and compared. Gross ratios were estimated for biofuel production from the above five sources. In addition, a mathematical programming model was used to assess the farm-level implications of producing switchgrass on a representative North Carolina farm. Supply prices were estimated for perennial biofuel feedstocks such as switchgrass and miscanthus. The sensitivity of the supply prices to changes in the interest rate were assessed. Some results of the project have been presented or submitted for presentation at professional meetings. Project funds facilitated attendance at the annual meeting of Southern Agricultural Economics Association. Collaboration with the Biofuels Center of North Carolina developed, as the project supported the review of six proposals for the Center. The project was useful in mentoring and graduating two more graduate students in agricultural economics, who based their thesis or graduate research on biomass feedstock production in North Carolina. PARTICIPANTS: Two graduate students, Kimona Smith and Kingsley Bonsu were supported by the project. One undergraduate student was also supported. In addition, the project was used to mentor the above students and one high school student who was a summer research apprentice. TARGET AUDIENCES: The target audience for the project include farmers, educators, researchers and entrepreneurs with an interest in biofuels. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
For the five-year period, 2007 to 2011, producing ethanol from corn was profitable only 40 percent of the time. Biodiesel production from soybeans was not profitable in any of the five years. Based on the mathematical programming model, switchgrass was not in the optimal farm plan. However, a 13 percent increase in the price of switchgrass reallocated 17 percent of the land to it from wheat and tobacco production. An estimated 250 stakeholders in the biofuel industry - educators, researchers and entrepreneurs- have received information on the economic feasibility of producing biofuels from various food and nonfood feedstocks. The information will enhance educational and research efforts and foster prudent investment in the industry. Two graduate students and one undergraduate student conducted research, and received support and practical training. Project findings were used to complement lecture materials in classes that relate to agribusiness finance and food policy.
Publications
- Smith, Michael, K. Smith, K. bonus and G. Ejimakor. 2012. Biofuels from Biomass: A Financial Efficiency Analysis. Paper presented at the 2012 Research Apprenticeship Program, North Carolina A&T State University.
- Ejimakor, Godfrey, K. Bonsu and R. Okafor. 2012. Farm-Level Impacts of Producing Perennial Energy Crops. Paper to be Presented at the Annual Meeting of the Southern Agricultural Economics Association in Orlando, FL, Feb 4-7, 2013.
- Ejimakor, Godfrey, K. Smith. Perennial Biomass for Bioenergy: Interest Sensitivity of Supply Prices. Paper to be Presented at the Annual Meeting of the Southern Agricultural Economics Association in Orlando, FL, Feb 4-7, 2013.
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Progress 01/01/11 to 12/31/11
Outputs
OUTPUTS: The competitiveness of nontraditional energy crops in the coastal, Piedmont and mountain regions of North Carolina were assessed. The price increases that will incentivize farmers to switch from traditional to nontraditional energy crops were estimated for each of the three regions. A portion of the results was presented at the professional meeting of the Food Distribution Research Society in Portland, Oregon in October 2011. Some results of the analyses were submitted and accepted for presentation at the annual meeting of the Southern Agricultural Economics Association in Birmingham, AL. A related project poster will also be presented at the meeting. Some results from past project activity was published in the Journal of the Food Distribution Research Society. PARTICIPANTS: Two graduate students, Obed Quaicoe and Kimona Smith, received research training, mentoring and experiential learning based on the project. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
It is expected that the new knowledge generated from this project will enhance the research and educational efforts of an estimated 100 scholars and educators who received information on the activities and results of the project. Other outcomes include new experiential learning for two graduate students and one undergraduate student. Two courses were enhanced by illustrative case studies describing the resource allocating function of prices that resulted from this project. Project funds are supporting graduate students in the form of assistantships. In addition, project funds provide the support for a work-study project for one undergraduate student, as well as portion of the salary of the principal investigator, who is mentoring these students.
Publications
- Eesiah, Edward, Godfrey Ejimakor and Sam Ezeanyika. 2012. "Investment in Sub-Saharan Africa," Journal of International Studies and Development, Spring 2012.
- Smith, Kimona and Godfrey Ejimakor. 2011. "Assymetric Information in the Market for Meats," Poster Paper presented during the 2011 Gamma Sigma Delta Showcase of Excellence in Research, NC A&T State University, Greensboro, NC.
- Ejimakor, Godfrey and Obed Quaicoe. 2011. "Assessing Obesity Rates and Factor Interaction," Poster Paper presented at the 2011 annual meeting of the Southern Agricultural Economics Association, Corpus Christi, TX.
- Ejimakor, Godfrey and Obed Quaicoe, The Food-Fuel Tradeoff: An Economic Analysis, Journal of Food Research Society, March 2011.
- Quaicoe, Obed, Factor Shares and Input Substitution in Southeastern US Agriculture, Master of Science Thesis, Department of Agribusiness, Applied Economics and Agriscience Education, NC A&T State University, Greensboro, NC, Fall 2011.
- Ejimakor Godfrey and Kimona Smith, "Implications of Producing Biomass for Advanced Biofuels," Paper Presented at the 2011 annual meeting of the Food Distribution Research Society, Portland Oregon, October 15-19, 2011.
- Ejimakor, Godfrey, Ralph Okafor and Kimona Smith, "Spatial Considerations in the Production of Nonconventional Biomass for Biofuels in North Carolina," Paper Prepared for Presentation at the 44th annual meeting of the Southern Agricultural Economics Association, Birmingham, Alabama, February 4-7, 2012.
- Markee Manning, Kimona Smith and Godfrey Ejimakor, "Assessing Students' Subjective Knowledge of the Contents of Selected Meat Products". Poster paper prepared for presentation at the 44th annual meeting of the Southern Agricultural Economics Association Meeting, Birmingham, Alabama, February 4-7, 2012.
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Progress 01/01/10 to 12/31/10
Outputs
OUTPUTS: Estimates were derived for prices at which switchgrass as biomass for biofuel would be competitive with conventional biofuel crops such as corn and soybeans in North Carolina. Based on the estimates, the price of switchgrass would need to increase by at least 11 percent in order to compete with corn and 19 percent in order to compete with soybeans. Part of the results was presented as a research update during the Food Distribution Research Society meeting in October 2010. In addition, some of the results were submitted and will be presented at the Southern Association of Agricultural Scientists annual meeting in February 2011. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
North Carolina is working toward a goal of replacing 10 percent of imported fossil fuels with biofuels from biomass grown in the state by 2017. We found indications that the price of switchgrass as a biofuels feedstock would need to increase by at least 11 percent in order to compete with corn, and 19 percent in order to compete with soybeans. Information such as this is critical for establishing a biofuels industry in North Carolina. In addition, the project has enabled the mentoring of three graduate students. One of the students has graduated and based his graduate paper on the project. A second student is completing a thesis based on the project. In addition, one undergraduate student is also being mentored through the project.
Publications
- Ejimakor, G. and Obed Q. 2010. The Food-Fuel Tradeoff: An Economic Analysis. Paper presented at the Food Distribution Research Society annual meeting, October 2010.
- Kyei, Prince B. 2010. The Economics of Biomass Feedstocks in North Carolina, Graduate Research Paper, Department of Agribusiness, Applied Economics and Agriscience Education, North Carolina A&T State University.
- Kyei, P. B., Ejimakor, G. and Okafor R. 2010. Biomass for Advanced Biofuels: Implications for North Carolina Agriculture. Paper prepared for presentation at the Southern Agricultural Economics Association annual meeting, February, 2011.
- Obed Q., Ejimakor G. and Okafor, R. 2010. Assessing Obesity Rates and Factor Interaction. Paper prepared for presentation at the Southern Agricultural Economics Association annual meeting, February, 2011.
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Progress 01/01/09 to 12/31/09
Outputs
OUTPUTS: Work has just begun on this study. Researchers will estimate the cost of production at which switchgrass will be profitable. The cost of production will include pre-plant, post-plant and harvests costs. The cost will also include the cost of foregoing the current uses of land. The effect of changes in the cost of borrowing money and the price of competing crops will be assessed. The goals/objectives of this project are: a. Assess the economic feasibility of producing switchgrass as biomasss feedstock in North Carolina. b. Analyze the sensitivity of switchgrass breakeven price to changes in the opportunity cost of land and the cost of capital. c. Assess the implications of commercial production of biomass feedstock for farmland allocation in North Carolina. A graduate student is being mentored based on the project. Selected literature relevant to the project has been assigned to the student who is expected to base his graduate thesis on it. Paper presentations related to the project were attended during the 2010 meeting of southern Association of Agricultural scientists meeting in Orlando, Florida. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
Breakeven even prices will be estimated for the production of biomass feedstock for the North Carolina biofeuls industry. The breakeven price will be estimated as the cost of producing switchgrass plus the opportunity cost of land. The cost of producing switchgrass will include the seed, chemical and machinery costs. The opportunity cost of land will be estimated as the net returns to land from the most predominant crop in an area. Estimated costs and yields after the establishment year (year 1) will be discounted to their present values using a discount rate tied to the prime rate. The sensitivity of the breakeven price to the changes in the discount rate and prices of traditional crops will be assessed.
Publications
- No publications reported this period
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