When adapted to individual grower conditions, the break-even biomass prices and yields offered here provide benchmarks for evaluating the profitability potential of converting current cropland to bioenergy crops.
Until a market develops for biomass, corn remains a better option for Michigan farmers than biofuel crops.
Once a market does develop, break-even budgeting is just a first step in evaluating whether to grow these crops. Other important direct costs will include storage and new equipment needs.
Contract designs and the risks that they present to growers will also deserve careful scrutiny before a grower engages in production of perennial bioenergy crops.