Economic potential of producing sweet sorghum as an annual bioenergy crop in the state of Florida

A study conducted by the University of Florida’s Institute of Food and Agricultural Sciences (UF/IFAS) evaluated the economic potential of producing sweet sorghum as an annual bioenergy crop in the state of Florida. An enterprise budget indicated that it would cost about $1,620 per acre to produce a plant (first) and a ratoon (second) crop of sweet sorghum for energy on the mineral soils of South Florida.

Harvest and transportation, account for over two-thirds of total production expenses and are directly related to energy consumption. These costs are increasing significantly, when transport miles are greater and energy prices rise proportionately. Fertilizer prices have risen in recent years with energy prices and continue to fluctuate. Moreover there are other expenses involving fuel used in tillage, planting, and cultivation that also consume energy directly, thus fluctuating with energy prices. The high expenses for energy use must be surpassed by the energy produced by the crop. The budget assumes a total yield of 45 tons per acre for the plant (30 tons/acre) and ratoon (15 tons/acre) crops (average of 22.5 tons per crop). Assuming 14 gallons of ethanol are derived from fermentation per wet ton, a yield of over 600 gallons of ethanol could be realized from these 45 tons. Breakeven cost evaluations indicated that at the base yield of 45 tons per acre, ethanol would need to have a value of at least $3.12 per gallon for the ethanol producer to break even at this yield level when two crops of sweet sorghum are harvested. The previous analysis assumed that two crops of sweet sorghum were grown in one year and that they were harvested and transported as corn for silage, which conveys very high transportation costs.

The results of the study showed that, if sweet sorghum can be produced as a rotation crop and some of the practices in the sugarcane industry can be utilized, sweet sorghum can become profitable as ethanol prices rise. For this expectation to be fully realized, however, improved varieties with higher yields of sugar and with pest resistance, fertilizer nutrient efficiencies, and alternative utilizations (grain, bagasse, vinasse, etc.) will need further research and development to reduce energy and dollar investments in producing sweet sorghum, boost revenue, and increase overall profitability.

Source : Economic Potential of Sweet Sorghum for Ethanol Production in South Florida, Zane R. Helsel and José Álvarez