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ARS Home » Plains Area » Mandan, North Dakota » Northern Great Plains Research Laboratory » Research » Publications at this Location » Publication #338264
Title: Examining farmers' willingness to grow and allocate land for oilseed crops for biofuel production

Author
item EMBAYE, WELDENSIE - Kansas State University
item BERGTOLD, JASON - Kansas State University
item Archer, David
item FLORA, CORNELIA - Kansas State University
item ANDRANGO, GRACIELA - Kansas State University
item ODENING, MARTING - University Of Humbolt
item BUYSSE, JEROEN - Ghent University

Submitted to: Energy Economics
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 3/1/2018
Publication Date: 3/6/2018
Citation: Embaye, W.T., Bergtold, J.S., Archer, D.W., Flora, C., Andrango, G.C., Odening, M., Buysse, J. 2018. Examining farmers' willingness to grow and allocate land for oilseed crops for biofuel production. Energy Economics. 71:311-320. https://doi.org/10.1016/j.eneco.2018.03.005.
DOI: https://doi.org/10.1016/j.eneco.2018.03.005

Interpretive Summary: The purpose of this paper is to determine farmers’ willingness to adopt and allocate land for growing non-food oilseeds as bio-energy crops across the western U.S. A survey of wheat farmers was conducted by mail in three regions of the western U.S. With favorable contracts, the study found that 58 percent of the farmers were willing to grow oilseeds as bio-energy crops and initially on an average of 160 acres of land. Factors that would increase or decrease farmers’ attitudes toward growing oilseeds for biofuel were identified. This is important information for bio-energy industry, economic development professionals, researchers, and extension personnel in identifying areas and farmers most likely to be willing to produce oilseeds for bio-energy.

Technical Abstract: The purpose of this paper is to determine farmers’ willingness to adopt and allocate land for growing non-food oilseeds as bio-energy crops across the western US. A mail survey was conducted in three regions of the western US from randomly selected wheat farmers. Data was analyzed using Heckman’s two stage selection model to correct for selection bias. Under favorable contracts, the study found that 58 percent of sample farmers were willing to adopt oilseeds as bio-energy crops and initially contribute an average of 160 acres of land for production per farm. Concerning farmers’ adoption decisions, factors such as experience growing oilseed crops, availability of a nearby crushing facility, use of no till, being a first adopter and having a college degree positively affected adoption, while risk behavior, farm experience and gender negatively affected adoption. With regard to the land allocation decision, factors such as farm income and gender positively affected land allocation decisions, whereas percentage of land rented on a crop share basis, profit ratio (wheat/canola) and livestock ownership negatively affected land allocation decisions.