Crop Selection and Contracting

Selecting the appropriate crop for energy production for a given area is critical to commercial scale success. The choice is fundamentally determined by the product of two primary factors, adaptation and intended use. Firstly, the species must be adapted to the local climate. For example, tropical species such as Napier grass will have limited application in more northern climates, while species like miscanthus are more adapted to those areas. Extensive research and development has produced production guidelines for many biomass crops and data are readily available to producers [6-8].

The second factor (i. e., use) will be determined by the end user’s specifications. Bioenergy crops will not be planted at large scales unless there are markets available for those crops. Those markets will be developed by biopower, biofuel, and bioproducts manufacturers. Some technologies are feedstock agnostic and can consume a wide array of feedstocks. Other technologies, most commonly biochemical platforms, are more selective and may have a more narrow specification for the species and types of feedstocks they accept. Either way, the biomass producer must ensure they are growing an acceptable type and quality of feedstock for the consumer.

An additional facet of crop selection is the determination of perennial versus annual energy crops. Most energy crops are perennial in nature. Species such as switchgrass, miscanthus, and energy canes can all have lifespans exceeding 10-15 years [6]. Woody crops, like poplar and willow, can extend 15-20 years depending on the desired rotation [9]. However, there are some energy crops that are annual in nature. Biomass sorghum, sweet sorghum, and grain sorghum all can be used as energy crops. These annuals offer flexibility in land utilization and farmer adoption.

Perennial bioenergy crops are desired for a range of reasons, mainly their low input and management intensity compared to other crops [10]. Annual crops, like sorghum, function more like traditional row crops and typically require higher levels of inputs. Yet these crops may be attractive to some landowners. Flexibility in contracting with both perennial and annual crops would allow an energy crop supply chain manager to offer both long-term (perennials) and short-term (annuals) contracts to attract landowners of differing interests and management goals. Having multiple types of contracts will truly increase the pool of available agricultural land.

Contracting with farmers for production of energy crop biomass can take many forms as well. The choice between perennial and annual crops will significantly determine contract attributes [11]. For perennial energy crops, long-term contracts (5-10 years) will likely be the norm. These longer-term contracts will be required to allow for recovery of the higher up-front establishment costs. Additionally, they provide more security and lower risk to the end user, whose project financing will require as much guarantee around feedstock supply as possible. In contrast, however, selection of an annual energy crop such as sorghum would allow for more short-term contracting and may attract landowners and farmers who have different approaches to land management. Those landowners and farmers would typically not participate in long-term contracts as they make more decisions on an annual basis. From a processor’s perspective, being able to contract for cropping systems that combine annuals and perennials will provide the most flexibility regarding the type of contract and type of landowner/farmer they can recruit.

Undoubtedly, contracts will likely vary substantially from farm to farm. Commercial biomass entities need to be prepared with a base level contract that spells out the specific criteria that must be met (e. g., who is performing the management, what is the floor price, what are the materials specifications, etc.). Some landowners and farmers will want to self — perform all management activities while others will prefer to have custom operators fulfill those duties. There will not be one single type of contract used for commercial applications.

There will also be multiple types of contracts to address the many different farm situations that exist.