Crop-based biofuels feasibility study for Washington County, New York

The following sections identify the most significant feasibility findings in three categories: social, technical / environmental, and economic.

SOCIAL FEASIBILITY
1. Farmers surveyed indicate strong shared concern about stability of fuel supply and pricing as they relate to the long-term viability of their farming enterprises. Eighty-seven percent (87%) of respondents indicated fuel costs were either their most significant concern or had a major impact on their operation. The vast majority of farmers surveyed (79%) believe that the Washington County agricultural industry should pursue biofuel crops.
2. Most farmers in the county would prefer a mode of operation in which they grow oilseed crops and sell the seed to a processor or cooperative. Forty-three percent (43%) indicate they would prefer to grow and sell seed, compared with those who would process the seed into saleable oil (13%) and those who would make biodiesel fuel (9%). Thirty-seven percent (37%) would opt to join a co-op when compared to partnering (17%) or “going it alone” (9%).

ENVIRONMENTAL & TECHNICAL FEASIBILITY
1. Washington County possesses soils that are compatible with production of oilseed crops. Oilseed crops will likely compete with corn for the most compatible soils and slightly graded land.
2. Oil seed crops have been grown in Washington County, though at relatively small scales. Examples of oilseed production for on-farm fueling can be observed in neighboring areas of Vermont. In fact, initial processing of pioneering Washington County farmers growing oil seed crops has been done at a cooperative scale processor in Southern Vermont. Common crops include sunflowers, canola and soybeans.
3. High yields have been demonstrated regionally for sunflower (2397 lbs/acre seed & 119 gal/acre oil) and canola (3360 lbs/acre & 112 gal/acre [est.]) More typical yields are lower (1800 lbs/acre seed and 70 gal/acre oil for sunflower and 1300 lbs/acre seed & 24 gal/acre for canola). Soybeans are grown widely in New York for feed with an average yield of 1976 lbs/acre (est. 52 gal/acre oil potential) National averages are 1454 lbs/acre sunflower grain and 2132 lbs/acre canola grain. European oilseed yields tend to be higher than US yields (France 1852 lbs/acre grain & 99 gal/acre oil for sunflower, Italy 1892 lbs/acre grain & 101 gal/acre oil). Interestingly, the climate of the dominant European growing regions is closer to the Northeast US than the Midwest when considering temperature and precipitation. Precipitation results in better growth and higher gross yield, but also presents a challenge for timing of harvest and moisture control. However, France and Italy both demonstrate relatively repeatable high yields despite high temperature and high precipitation even during harvest months. See Figure 2.
4. The vast majority of fuel use on Washington County farms is diesel fuel (87%).
5. Washington County farmers could self-fuel their operations by converting a minority of their existing cropland to oilseed production. Roughly 108,459 acres are designated as cropland in the county with 67% used for forage, 23% for corn silage and 7% for grain corn. Corn and forage, therefore, account for 97% of the cropland use in the county. Annual diesel fuel consumption by Washington County farms is 1.1 million gallons. A conservative estimate of net yield of oil from oilseed crops such as canola and sunflower in our region is 75 gallons/acre. This means that roughly 14,700 acres (or 13.5% of cropland) would have to be dedicated to oilseed crops for all farms in the county to be self-fueled. The level of diesel fuel usage on Washington County farms seems to vary widely regardless of acreage. At the farm level, to support an assumed fuel use of 1200 gallons per year, roughly 16 acres (or 11% of the average farm’s 147 acres of cropland) would be required to self-fuel. To support a higher assumed fuel use of 3200 gallons per year, roughly 43 acres (30% would be required.) This discrepancy suggests some farms should first consider fuel economy measures in addition to embarking on biodiesel production.
6. A majority of farmers in Washington County (75%) lack experience with biofuels.
7. Of those who have some experience with biofuels (25%), none have had any equipment issues that they would attribute to the use of the alternative fuel. Many farmers and others around the globe have had excellent experiences running equipment on both pure vegetable oil and on biodiesel. This is consistent with research through-out the world; well filtered pure vegetable oil and well converted biodiesel fuel will not impact equipment longevity. This is consistent with published results [7, 16, 17, 19 & 21].
8. Relatively few farmers surveyed indicate that equipment warranty is an extremely important issue for them (12%). The balance of respondents indicated warranty is either unimportant (50%) or somewhat important (38%).
10. Grain meal is a bi-product of the oil pressing process. This meal can be used as part of a ration for livestock or may represent a valuable revenue stream. The value of this bi-product has been well covered by other researchers [24].

ECONOMIC FEASIBILITY
1. Farm economics was noted as the main reason respondents have considered not farming anymore. Fifty-two percent (52%) of those who have considered stopping farming indicated this was the reason. Retirement was the second most common reason (24%).
2. Fuel represents about 10% of all farm expenses in Washington County.
3. Vegetable oil can be produced regionally at $3.50/gallon, and can be used directly in most diesel engines. Pure vegetable oil does require some additional equipment to be installed on equipment to heat the oil in cold temperatures. The cost of seed production equivalent to a gallon of oil is estimated at $3.00/gallon (at the farm gate). Pressing the oil from the seed is estimated to cost roughly $0.50/gallon on farm-scale equipment.
4. Crop-based biodiesel production has been demonstrated at a cost of roughly $5.00/gallon in our region. Processing the oil mentioned in #3 above to biodiesel adds another $1.50/gallon to the estimated $3.50/gallon cost for pure oil. The processing of vegetable oil to biodiesel introduces the most economic uncertainty due to costs of additional chemicals required for the reaction. Net yields in either case will be impacted by pest damage, disease and weather resulting in another significant variable. Off-road diesel was selling for $4.50/gallon at the time of writing, having risen $3.00/gallon in the past 10 years and $2.00/gallon in the past six months.
5. Centralized, co-op scale pressing of oilseeds can be done for as little as $0.05/gallon and conversion of oil to biodiesel may reduce the cost per gallon significantly to about $3.50/gallon due to economies of scale when compared to an on-farm processor.
6. Capital costs are significantly reduced by pooling resources to support a cooperative scale processing center. An 80 gallon batch processor for use by a single farm would cost about $5,800 and have a useful life of 10 years. A 300 gallon batch processor would cost about $50,000 and have a useful life of 20 years and could provide fuel for approximately 50 farms each year. Amortized capital costs work out to about $0.03 / gallon for a single farm processor and about $0.01/gallon for a cooperative. Cooperatives will also benefit from reduced chemical costs since they could be purchased in larger quantities. Savings would be experienced in consolidating oil press operations, or using a mobile pressing unit that is shared within the co-op’s region.
7. Assessment of the impact of scale on biodiesel processing (Figure 7 and Figure 8) suggests a medium sized co-operative (15-30 farms) could produce biodiesel at roughly $4.00/gal compared with $3.95/gal when produced in a commercial facility from the same feedstock (locally grown oilseed crops) using similar equipment. A larger co-operative (30 or more farms) is predicted to produce fuel for even less ($3.65/gal). These comparisons all assume used grain bins and Asian oil presses. In reality, a commercial facility will likely not include used grain bins and may opt for more automated, higher cost European oil presses which would result in a higher cost of $4.92/gal. The inherent thift and fabrication ability of area farmers is an asset not typically appreciated or quantified. This assessment shows its value.