Production Profitability of Ethanol from Alternative Feedstocks in the Texas Panhandle

Lal K. Almas, David G. Lust, Kathleen Brooks and J.R. Girase

No 119723, 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama from Southern Agricultural Economics Association

Abstract: The potential of three feedstocks: grain sorghum, sweet sorghum, and switchgrass for ethanol production in the top 26 counties of the Texas Panhandle Region is analyzed using yield and production costs of feedstock, processing cost of feedstock, final demand for ethanol, farm to wholesale marketing margin, and the derived demand price of feedstock. The calculated economic returns per acre of grain sorghum, sweet sorghum, and switchgrass are -$45.37, -$410.19, and -$150.17 respectively under irrigated condition and -$38.25, -$145.09, and -$29.04 respectively under dryland condition. The evaluation in this study demonstrates that ethanol production from grain sorghum, sweet sorghum, and switchgrass in the Texas Panhandle Region is not economically feasible given the current price for ethanol in Texas. This is consistent with the status of the ethanol industry in the Texas Panhandle.

Keywords: Crop Production/Industries; Production Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 17
Date: 2012
New Economics Papers: this item is included in nep-agr and nep-ene
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea12:119723

DOI: 10.22004/ag.econ.119723

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