An agro-economic analysis of willow cultivation in Poland

Bioenergy is recognized as the most important renewable energy source in Poland in several national policy documents. This has spurred an in increasing interest in energy crops, particularly willow, due to the large areas of arable land in Poland. However, in order for willow to be adopted by farmers, this crop must be perceived to be at least as profitable as cereal crops, such as wheat and barley, which compete for the same land. The objective of this study was to calculate the economics of growing willow on relatively large farms from a farmer's perspective in Poland. An additional objective was to relate the viability of growing willow to that of growing wheat and barley. Our calculations show that growing willow can indeed be an economically viable alternative to wheat and barley. At the current Polish price of wood chips (about 33 PLN/MWh or 7.5 E/MWh), the viability of willow is similar to that of barley given our assumptions on yields, etc. Wheat is the most viable crop of the three crops studied. Willow, however, is more profitable than both wheat and barley assuming a wood chip price of 50 PLN/MWh (11 E/MWh), which better represents the price in Europe as a whole. Despite good viability, willow is unlikely to be adopted by a great number of farmers without active support mechanisms and long-term stability of the status of energy crops in the Polish and the EU common agricultural policy. (C) 2005 Elsevier Ltd. All rights reserved.