The Conservation Reserve Program as a Means to Subsidize Bioenergy Crop Prices

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The Conservation Reserve Program (CRP), enacted in the 1985 Farm Bill, removes environmentally sensitive cropland from production in exchange for annual rental payments from the federal government. To reduce the cost of the program, economic use of CRP acres in exchange for reduced rental payments were proposed, but not implemented in the 1995 Farm Bill. This paper examines the potential impact an economic use policy would have on the market prices of bioenergy crops if they were permitted to be harvested from CRP acres. The analysis shows that at average yields of 11.25 dry Mg/ha/yr (5 dry tons/ac/yr) and total ... continued below

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8 pages

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Walsh, M.E.; Becker, D. & Graham, R.L. September 15, 1996.

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Description

The Conservation Reserve Program (CRP), enacted in the 1985 Farm Bill, removes environmentally sensitive cropland from production in exchange for annual rental payments from the federal government. To reduce the cost of the program, economic use of CRP acres in exchange for reduced rental payments were proposed, but not implemented in the 1995 Farm Bill. This paper examines the potential impact an economic use policy would have on the market prices of bioenergy crops if they were permitted to be harvested from CRP acres. The analysis shows that at average yields of 11.25 dry Mg/ha/yr (5 dry tons/ac/yr) and total production of 9.1 million dry Mg (10 million dry tons) subsidized farmgate prices of as low as $16.5/dry Mg ($15/dry ton) for switchgrass and $24.2/dry Mg ($22/dry ton) for short-rotation woody crops can be achieved. Furthermore, the government can reduce the cost of the CRP resulting in a potential win-win situation.

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8 pages

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OSTI as DE00772466

Source

  • Bioenergy '96, Nashville, TN (US), 09/15/1996--09/20/1996

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  • Report No.: P00-108395
  • Grant Number: AC05-00OR22725
  • Office of Scientific & Technical Information Report Number: 772466
  • Archival Resource Key: ark:/67531/metadc723247

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Office of Scientific & Technical Information Technical Reports

Reports, articles and other documents harvested from the Office of Scientific and Technical Information.

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  • September 15, 1996

Added to The UNT Digital Library

  • Sept. 29, 2015, 5:31 a.m.

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  • Jan. 19, 2016, noon

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Walsh, M.E.; Becker, D. & Graham, R.L. The Conservation Reserve Program as a Means to Subsidize Bioenergy Crop Prices, article, September 15, 1996; Tennessee. (digital.library.unt.edu/ark:/67531/metadc723247/: accessed October 21, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.