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Testing On-Farm Biodiesel Economics

Aug 1, 2008 12:00 PM, BY LYNN GROOMS

The average price for diesel across the U.S. was $4.72/gal. on Memorial Day. A few days later, July soybean futures on the CBOT were at $13.22 ¾. Despite high fuel prices and a drop in soybean futures prices, there was still good money to be made from soybeans…enough to dissuade growers from producing their own soy-based biodiesel anytime soon.

But what about biodiesel from other oilseeds or restaurant grease? Farmers around the country are attending workshops and participating in test programs to see what makes the most economic sense.

Some western-Wisconsin growers and the University of Wisconsin (UW) Extension Service, for example, are testing the concept. “In fall 2006, a lot of farmers were frustrated enough with fuel prices to ask about alternative sources of fuel,” says Bill Halfman, UW Extension agent in Monroe County. “Some of this was spurred by claims of how inexpensive it was to grow and produce your own biodiesel. We couldn't find any unbiased research on small-scale biodiesel production.”

So Halfman, five other Extension agents and UW soybean specialists evaluated the economics of on-farm biodiesel production. They organized several workshops covering the basics of growing alternative oilseed crops (canola and sunflower), production processes and costs and state regulations.
Chris and Dustin Ellis, Independence, WI, were willing to set up a biodiesel production system on their farm. They already had experience using a 50/50 diesel/biodiesel blend from a local cooperative in their John Deere 8000 series equipment with no adverse effects. As temperatures dropped in the fall, they cut back to a B5 blend.

The Ellises and several other growers agreed to plant test plots for the Wisconsin project. Last year, several grew sunflowers.

Matt Danzinger, Alma, WI, grew 8 acres. Because this dairy producer's soil is so fertile, the sunflower heads grew to the size of basketballs and lodged. Danzinger also learned about shelling loss and sunflowers' drydown requirements.

This year, he's planted 4 acres to sunflowers, which average 1,500-3,000 lbs./acre. A 3,000-lb. yield would produce 140 gal./acre of biodiesel, he says. He is not motivated by cost savings. Rather, he looks to biodiesel production as a way to improve land, air and water resources.

Danzinger says biodiesel would be a good fit on his 500-cow farm. He could use as much as 30,000 gal./year to fuel mixer trucks, forage harvesters, a payloader, skid steers and other equipment. Moreover, he could feed the oilseed meal back to his cattle. One of the study's goals is to examine the feed value of oilseed meal.

While the Wisconsin project's cooperators didn't have much success with sunflowers last year, some are trying it again this year. One grower also is planting a small canola plot.

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