Is it economically feasible for farmers to grow their own fuel? A study of Camelina sativa produced in the western United States as an on-farm biofuel

• Published in: Biomass & bioenergy 2013-07, Vol.54, p.89-99
• Main Authors: Keske, Catherine M.H., Hoag, Dana L., Brandess, Andrew, Johnson, Jerry J.
• Format: Article
• Language: English
• Subjects: Agronomic–economic model; Agronomy. Soil science and plant productions; Biological and medical sciences; Camelina; Camelina sativa; Economic feasibility; Energy independence; Fundamental and applied biological sciences. Psychology; General agronomy. Plant production; Generalities. Agricultural and farming systems. Agricultural development; Generalities. Production, biomass, yield. Quality; Oilseed; Straight vegetable oil (SVO)
• ISSN: 0961-9534; 1873-2909
• DOI: 10.1016/j.biombioe.2013.03.015

This paper models the economic feasibility of growing the oilseed crop Camelina sativa (“camelina”) in the western United States to produce value-added protein feed supplement and an SVO-based biofuel. Modeled in eastern Colorado, this study demonstrates that camelina can be grown profitably both as a commodity and as an energy biofuel. These findings, along with the stochastic crop rotation budget and profitability sensitivity analysis, reflect unique contributions to the literature. The study's stochastic break-even analysis demonstrates a 0.51 probability of growing camelina profitably when diesel prices reach 1.15 $ L−1. Results also show that the sale of camelina meal has the greatest impact on profitability. Yet once the price of diesel fuel exceeds 0.90 $ L−1, the farmer generates more revenue from the ability to offset diesel fuel purchases than the revenues generated from the sale of camelina meal. A risk analysis using second degree stochastic dominance demonstrates that a risk-averse farmer would choose to grow camelina if the price of diesel equals or exceeds 1.31 $ L−1. The article concludes that camelina can offset on-farm diesel use, making it economically feasible for farmers to grow their own fuel. As a result, camelina production may increase farm income, diversify rural economic development, and contribute to the attainment of energy policy goals. •This is a stochastic budget analysis of growing camelina as SVO-based biofuel.•Results demonstrate economic feasibility for producers to grow their own fuel.•Camelina production can diversify regional and national energy portfolios.•Camelina production can contribute to on-farm energy independence.