ECONOMIC ANALYSIS OF SMALL SCALE ON-FARM PRODUCTION OF BIODIESEL AND VEGETABLE OIL FOR INDUSTRIAL ..

According to the United States Department of Agriculture's Agriculture Research Service (USDA-ARS), the southeastern United States has a strong potential for growing a variety of bioenergy feedstocks, including oil seed crops. These oilseed crops can be used as a source of biodiesel feedstock. Winter oilseed crops, in particular, can be sown during the winter months, when most farmers leave their land fallow. The goal of this study was to calculate the overall economic benefits of producing biodiesel and vegetable oil for industrial use from small-scale winter oilseed crops. The benefit:cost model was utilised for the analysis, which was based on primary and secondary data sources. Under different situations, winter canola and industrial rapeseed production could produce positive net returns, according to the analysis. Biodiesel production from winter canola could result in a positive net return, whereas rapeseed oil production yielded a negative net return. Rapeseed meal also provided no additional revenue due to its toxicity. The production cost of biodiesel from winter canola to the producer was between $0.33/l and $0.72/l, according to the analysis. As a result, net returns could range from $0.26 to $0.65 per litre. Depending on canola yield, the predicted break-even price for winter canola grain ranged from $0.12 to $0.16/kg. The predicted break-even price for biodiesel production from winter canola was $0.33/l to $0.72/l. However, the grain and oil break-even prices for industrial rapeseed were $0.29/kg and $2.42/l, respectively. The benefit:cost ratio also revealed that biodiesel production from winter canola was cost-effective, whereas oil production from industrial rapeseed was not under the yield scenario utilised in the investigation. Industrial rapeseed, on the other hand, may be a competitive crop for manufacturing vegetable oil for industrial application if the toxicity of rapeseed meal could be resolved. The study's findings will be beneficial to oilseed growers and farmers interested in manufacturing on-farm biodiesel.

Please see the link :- https://www.ikprress.org/index.php/JOGAE/article/view/866