Preferences for Marketing Arrangements by Potential Switchgrass Growers

Abstract

This study analyzes factors influencing farmer interest in marketing switchgrass through contracts and/or joining a cooperative that harvests, transports, stores, and markets their switchgrass. Data are from a survey of farmers in 12 southern states. A bivariate probit analysis is used to estimate the effects of farm characteristics, farmer demographics, and opinions about switchgrass on marketing alternative preferences. Interest in contracting and joining a cooperative are positively influenced by farm size, on-farm storage, moderate off-farm income, and heightened importance of job creation in decision to produce switchgrass. Negative influences include concerns about planting/harvesting conflicts and expectation of ceasing farming soon.