Impact of Environmental Values on the Breakeven Price of Switchgrass

This study estimates the farm-gate breakeven price of switchgrass relative to wheat in Oklahoma. The breakeven price of switchgrass is determined for two situations: when external consequences are ignored and when the environment costs of changes in soil erosion, fertilizer (nitrogen and phosphorous) runoff, and soil organic carbon are considered. Results suggest that the farm-gate breakeven price of switchgrass from the internal cost only perspective is higher than the cost if the value of the selected external consequences is considered. The potential environmental benefits are greater if highly erodible land is switched from annual cropping to switchgrass.