Charles Martinez, Christopher N. Boyer, Tun-Hsiang Yu, S. Aaron Smith and Adam Rabinowitz
The authors examined the impact of the Market Facilitation Program (MFP) and Coronavirus Food Assistance Program (CFAP) payments to United States agricultural producers on…
Abstract
Purpose
The authors examined the impact of the Market Facilitation Program (MFP) and Coronavirus Food Assistance Program (CFAP) payments to United States agricultural producers on non-real estate agricultural loans.
Design/methodology/approach
The authors used quarterly, state-level commercial bank data from 2016–2020 to estimate dynamic panel models.
Findings
The authors found MFP and CFAP payments not associated with the percentage of non-real estate agricultural loans with payments over 90 days late. However, these payments associated with the percentage of non-real estate agricultural loans with payments between 30 and 89 days late. The available data utilized cannot consider when producers received the actual payment and what they specifically did with those funds.
Originality/value
The contribution of this study is for US policymakers and agricultural lenders. The findings could be helpful in designing and implementing future ad hoc payment programs and provide an understanding of potential shortcomings of the current safety net for agricultural producers in the Farm Bill. Additionally, findings can assist agricultural lenders in predicting the impact of ad hoc payments on their distressed loan portfolios.
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Keywords
James A. Larson, Tun‐Hsiang Yu, Burton C. English, Daniel F. Mooney and Chenguang Wang
The US Department of Energy has a goal to make ethanol from biomass cost competitive with petroleum by 2012. Feedstock procurement is expected to represent a significant portion…
Abstract
Purpose
The US Department of Energy has a goal to make ethanol from biomass cost competitive with petroleum by 2012. Feedstock procurement is expected to represent a significant portion of the operating costs for a refinery that produces ethanol from biomass such as switchgrass. Thus, cost‐effective feedstock logistics will be a key factor for the future development of a capital intensive cellulosic ethanol industry. The purpose of this paper is to analyze the cost of various logistic methods of switchgrass production, harvesting, storing, and transportation.
Design/methodology/approach
This study applied enterprise budgeting and geographical information system (GIS) software to analyze the costs of three logistic methods of acquiring switchgrass feedstock for a 25 million gallon per year refinery. Procurement methods included traditional large round and rectangular bale harvest and storage systems and satellite preprocessing facilities using field‐chopped material. The analysis evaluated tradeoffs in operating costs, dry matter losses during storage, and investment requirements among the three systems.
Findings
Results suggest that the preprocessing system outperformed the conventional bale harvest methods in the delivered costs of switchgrass.
Practical implications
The cost savings in harvest, transportation, and dry matter losses for the preprocessing system offset their extensive capital costs and generated cost advantages over the conventional methods.
Social implications
The traditional round bale system has a higher overall investment cost, may not be the most cost‐effective way to procure switchgrass feedstock for a refinery, and may limit farmer participation in the feedstock value chain.
Originality/value
GIS methods combined with enterprise budgeting can be useful tools for evaluating investment in feedstock supply chain infrastructure.
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J.F. Dallemand, G. De Santi, A. Leip, D. Baxter, N. Rettenmaier and H. Ossenbrink
The objective of this paper is to discuss some scientific challenges related to the production and use of biomass for transport, heat and electricity.
Abstract
Purpose
The objective of this paper is to discuss some scientific challenges related to the production and use of biomass for transport, heat and electricity.
Design/methodology/approach
Specific attention is paid to the environmental assessment of liquid bio‐fuels for transport and to the discussion of causes of uncertainties in the assessment. Three main topics are taken as examples, in order to illustrate the complexity of environmental assessment of bio‐fuels and the difficulty in reducing uncertainties: agro‐environmental impact of bio‐ethanol (from sugar cane) in Brazil and bio‐diesel (from palm oil) in Malaysia. These two tropical countries were selected because of their role as leaders at world level and their strong export potential to the European Union), N2O (Nitrous Oxide) emissions related to crop cultivation for bio‐fuels and land use change; and GHG emissions and Life Cycle Assessment (LCA) of bio‐diesel from palm oil in Malaysia. These three topics are discussed and complemented by considerations about biomass conversion issues.
Findings
The quantification of the degree of the sustainability of the production and use of bio‐fuels for transport is to a large extent related to the choice of farming practices during the feedstock production and their corresponding environmental impact.
Practical implications
Recommendations are formulated so as to reduce scientific uncertainty, for example through the development of internationally‐agreed sustainability certification systems with corresponding verification measures, or further research on emissions and indirect land‐use change.
Originality/value
The value of the paper on bio‐energy research challenges is related to the combined analysis of European and tropical constraints in the field of biomass.