Farmgate contract

Creation of a multi-bale handling unit will require specialized equipment. It is not a cost — effective to require each farmgate contract holder to own this equipment The rack system, for example, envisions a farmgate contract whereby the contract holder grows the crop, harvests in round bales, and places these bales in storage at a specified SSL. The contract holder owns and maintains the SSL and is paid a storage fee for each unit of feedstock that is stored. The biomass is purchased by the bioenergy plant in the SSL. All agricultural operations are now "sequestered" in the farmgate contract which gives those seeking a farmgate contract a well-defined process to prepare their bid.

A SSL must be graded to a minimum slope specification, must be near a main road, and must have a compacted gravel base. The gravel reduces bale degradation from water damage on the bottom of the bale and provides a suitable surface for equipment operations. Each SSL will receive material from either a single large production field or multiple, smaller fields as proposed by Cundiff et al. [59].