PR - Investing In Short Rotation Coppice - Alternative Energy Crop Of An Albatross Around The Neck?

Short Rotation Coppice (SRC) for bioenergy generation becomes increasingly important and is regarded as a promising new income source for farmers. The present study compares the profitability of SRC in line with a typical crop rotation. For comparison of profitabilities investment analysis is applied to account for the time value of money. Results show that the net present values for the regarded cropping activities vary widely. Although SRC can reach profitability the regarded crop rotation turns out to be the better option in periods with high market prices for agricultural commodities. Since SRC is related with long-term specific investments and break-even is achieved after 8 years, investment decisions have to be scrutinized.

Keywords— Short Rotation Coppice, investment analysis, profitability