Economic Evaluation of Switchgrass Feedstock Production Systems Tested in Potassium-Deficient Soils

Limited information is available about the economic benefits and costs associated with managing switchgrass (Panicum virgatum L.) produced for bioenergy feedstock in the K-deficient soils common in the southern Great Plains. The objectives of this study were to determine the most economical production system for harvesting and managing N and K fertilizations on switchgrass stands and to determine how sensitive the results are to various feedstock and fertilizer market price scenarios. A 4-year agronomic field experiment was conducted on a K-deficient site in South Central Oklahoma; the treatments included two harvest systems (summer and winter (SW) and winter only (W)), two N rates (0 and 135 kg ha−1), and two K rates (0 and 67 kg ha−1). Enterprise budgeting techniques and mixed ANOVA models were used to determine and compare the effects of eight harvest/N/K systems on yield, total cost, revenue, and net return. The harvest/N/K systems evaluated included SW/0/0, SW/0/67, SW/135/0, SW/135/67, W/0/0, W/0/67, W/135/0, and W/135/67. Results revealed the SW/135/67 system produced significantly (P > 0.0001) greater average yield compared to the other systems; however, the SW/0/0 system was the most (P > 0.0001) economical, realizing an average net return of $415 ha−1. Compared to the base–case net return of the SW/0/0 system, the value of the additional yield generated with the SW/135/67 system was less than the costs associated with the extra nutrients and additional harvest activity. For feedstock prices greater than $110 Mg−1, the most economical system shifted from the SW/0/0 to favor the SW/135/67 system.