Southeast Region

Cropland in the upper Coastal Plain and lower Piedmont portions of the region (Fig. 26) appears well suited for energy crops, in particular switchgrass (Tables 15 and 16). Cash land rents are low; yields are moderately high. The field data on switchgrass yields are comparatively rich for this region. Farmgate prices under $35/dry ton seem possible for most cropland. The drawback to the region is its comparatively low density of cropland which would raise transportation costs. If mature yields of 6 dry tons/yr could also be achieved on cropland that is currently being used for pasture, the density of land suitable for switchgrass production would double. Nonetheless, the region should be capable of supplying several million tons of biomass annually using the current cropland.

Fig. 26. Southeast Region

This was also one of the lowest cost production regions for hybrid poplar with substantial acreages with prices under $50/dry ton. Given the strong wood products industry in the region, the infrastructure for handling wood should be available. There is also considerable interest in hybrid poplar production by the wood products industry in this region.

ORIBAS Analysis - Alabama, Florida, Georgia, South Carolina

All four states in this region have been analyzed using ORIBAS. The results largely corroborate the ORECCL analysis. The ORIBAS analysis, which is not biased by real estate development pressures (e.g., as near Atlanta and Athens, Georgia), suggests that the upper Piedmont of Georgia would also be a good region for switchgrass production. Transportation costs were estimated to be about $8/dry ton for large facilities (>700,000 tons/yr) and around $6/dry ton for moderate-sized facilities (110,000 tons/yr). The much lower average farmgate prices for Florida are due to differences in the land area considered. The ORIBAS analyses only considered counties which produced at least some corn and, thereby, excluded the high-priced countries around Gainesville and Ocala and the Gulf Coast counties.

Table 15. Short Rotation Woody Crops - Southeast Region

Table 16. Switchgrass - Southeast Region

At 110,000 dry ton/yr facility demand, ORIBAS identified 29 sites in Alabama whose marginal delivered switchgrass feedstock price was $28.08 to $31.84/dry ton (Fig. 27). Sites were generally located in the southeast corner of the state and or along the northern tenth of the state. Both are regions of high cropland density. The paucity of sites in the black prairie region is probably due to the lack of active cropland (cropland on which crops are being produced—the only land base considered in these ORIBAS analyses). The northern sites were slightly less expensive. At the 700,000 ton/yr demand level only three sites were located, and prices ranged from $31.99 to $35.94 (Fig. 28). The geographic distribution of the sites at this facility demand mirrored that of the smaller facilities demand.

	Fig. 27. Location and marginal delivered switchgrass price of lowest cost 110,000 ton/yr facility sites in Alabama.
	Fig. 28. Location and marginal delivered switchgrass price of lowest cost 700,000 ton/yr facility sites in Alabama.

At 110,000 dry ton/yr facility demand, ORIBAS identified three sites in Florida whose marginal delivered switchgrass feedstock price was $35.43 to $36.79/dry ton (Fig. 29). The land base for switchgrass in Florida is largely limited to the northern panhandle, and cropland density is fairly low. The state was incapable of supporting a 700,000 dry/year switchgrass facility under the crop land availability assumptions used in the analyses.

Fig. 29. Location and marginal delivered switchgrass price of lowest cost 110,000 ton/yr facility sites in Florida.

At 110,000 dry ton/yr facility demand, ORIBAS identified 30 sites in Georgia whose marginal delivered switchgrass feedstock price was $30.01 to $34.19/dry ton (Fig. 30). The lowest cost sites tended to fall along the southern boundary of the Piedmont region.

The lack of facilities in the southeast portion of Georgia is due to low cropland density and the assumption of low switchgrass yields in the coastal plain. The lack of facilities in the northwest corner of the state is due to the profitability of conventional crops. At the 700,000 ton/yr demand level only four sites were located and prices ranged from $35.74 to $37.40 (Fig. 31). The geographic distribution of the sites at this facility demand mirrored that of the smaller facilities.

	Fig. 30. Location and marginal delivered switchgrass price of lowest cost 110,000 ton/yr facility sites in Georgia.
	Fig. 31. Location and marginal delivered switchgrass price of lowest cost 700,000 ton/yr facility sites in Georgia.

At 110,000 dry ton/yr facility demand, ORIBAS identified 15 sites in South Carolina whose marginal delivered switchgrass feedstock price was $29.44 to $32.48/dry ton (Fig. 32). As in Georgia, the lowest cost sites tended to fall along the southern boundary of the Piedmont, and no facilities were sited in the Coastal Plain area due to low cropland density and low switchgrass yields. At the 700,000 ton/yr demand level, only two sites were located at prices of $34.07 and $35.54 (Fig. 33).

	Fig. 32. Location and marginal delivered switchgrass price of lowest cost 110,000 ton/yr facility sites in South Carolina.
	Fig. 33. Location and marginal delivered switchgrass price of lowest cost 700,000 ton/yr facility sites in Georgia.

File created: April 29, 1999: Last updated: