Improving the Profitability of Willow Crops-Identifying Opportunities with a Crop Budget Model

Short-rotation woody crops like shrub willow are a potential source of biomass for energy generation and bioproducts. However, since willow crops are not widely grown in North America, the economics of this crop and the impacts of key crop production and management components are not well understood. We developed a budget model, EcoWillow v1.4 (Beta), that allows users to analyze the entire production-chain for willow systems from the establishment to the delivery of wood chips to the end-user. EcoWillow was used to analyze how yield, crop management options, land rent, fuel, labor, and other costs influence the Internal Rate of Return (IRR) of willow crop systems in upstate New York. We further identified cost variables with the greatest potential for reducing production and transport costs of willow biomass. Productivity of 12 oven-dried tons (odt) ha(-1) year(-1) and a biomass price of $ (US dollars) 60 odt(-1) results in an IRR of 5.5%. Establishment, harvesting, and transportation operations account for 71% of total costs. Increases in willow yield, rotation length, and truck capacity as well as a reduction in harvester down time, land costs, planting material costs, and planting densities can improve the profitability of the system. Results indicate that planting speed and fuel and labor costs have a minimal effect on the profitability of willow biomass crops. To improve profitability, efforts should concentrate on (1) reducing planting stock costs, (2) increasing yields, (3) optimizing harvesting operations, and (4) co-development of plantation designs with new high-yielding clones to reduce planting density.