Analysis of the Economic Competitiveness of Perennial Energy Crops on Arable Farms

With the anticipated ending of obligatory set-aside, energy crops and industrial crops will be subject to direct competition with arable crops or livestock enterprises. This will have a significant impact upon farmers’ decisions as to whether to grow such crops.

Author D Turley, N Liddle. Agricultural and Rural Strategy Team, Central Science Laboratory
Published 09 May 2008
Industry Feedstocks Bioenergy
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The provision to allow production of only non-food crops on set-aside land enabled production of industrial and energy crops that in other circumstances may have been less economically competitive with potential competitor arable crops.

A simple analysis was undertaken to compare anticipated annual enterprise margins for short rotation coppice (SRC) willow and Miscanthus with those of wheat, taking account of variation in typical yield and crop price for both wheat and energy crops.

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