Comparative Economic Analysis Between Bioenergy and Forage Types of Switchgrass for Sustainable Biofuel Feedstock Production: A Data Envelopment Analysis and Cost–Benefit Analysis Approach

Abstract

The capacity to produce switchgrass efficiently and cost-effectively across diverse environments can be pivotal in achieving the short- and medium-term Sustainable Aviation Fuel targets set by the U.S. Department of Energy. This study evaluated the economic performance of forage- and bioenergy-type switchgrass cultivars and their response to N fertilization under diverse marginal environments across the US Midwest that included Illinois (IL), Iowa (IA), Nebraska (NE), and South Dakota (SD). Data Envelopment Analysis (DEA) was used to evaluate the efficiency of 23 Decision-Making Units (DMUs)—cultivar types and N fertilization rate combinations—while a cost–benefit analysis calculated their profitability over 5 years. Results showed that two energy-type cultivars—“Independence” and “Liberty”—were superior economically to the forage cultivars. Independence performed best with the highest profit margin when fertilized at 56 kg N ha⁻¹, particularly in the US hardiness zone 6a (Urbana, IL). Liberty exhibited the highest profit margins in hardiness zone 5b (Madrid, IA, and Ithaca, NE) at 56 kg N ha⁻¹ and showed exceptional profitability with 28 kg N ha⁻¹ in hardiness zone 6b (Brighton, IL). Switchgrass cultivar “Carthage” showed better efficiency score and profitability results in hardiness zone 4b (South Shore, SD) at 56 kg N ha⁻¹. The profit trends observed in current study sites may indicate broader patterns across similar US hardiness zones. This study provides valuable insights for decision-makers to optimize input strategies for biomass production of bioenergy switchgrass to meet renewable energy demands.