Energy Flow

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1 Energy Issues Affecting Corn/Soybean Systems: Challenges for Sustainable Production Issue Paper 48 January 2012 Dr. Doug Karlen www.cast-science.org

Task Force Members : 

Task Force Members Authors Douglas Karlen (Chair) USDA–ARS, National Laboratory for Agriculture and the Environment, Ames, Iowa David Archer USDA–ARS, Northern Great Plains Research Center, Mandan, North Dakota Adam Liska Department of Biological Systems Engineering, University of Nebraska–Lincoln Seth Meyer Food and Agricultural Policy Research Institute–Missouri, Columbia Reviewers Harold Reetz Reetz Agronomics, LLC, Monticello, Illinois Timothy Smith Bioproduct and Biosystems Engineering, University of Minnesota–Twin Cities Campus, St. Paul Anthony Turhollow Environmental Sciences Division, Oak Ridge National Laboratory, Oak Ridge, Tennessee 2

An Overview of this Paper : 

An Overview of this Paper Quantifying energy issues for agricultural systems is not easy This Issue Paper uses corn/soybean production systems to illustrate complexities in generation, supply, distribution, and use of energy Implementing energy-conserving production practices and developing sustainable biofuel feedstock supply strategies are critical issues 3

Background : 

Background Many current agricultural practices developed assuming cheap and abundant energy supplies Increased global demand for food, feed, and energy; climate variability; and uncertain oil supplies all affect energy demand and use Our key assumptions were that: (1) energy conservation and efficiency are the most important factors, and (2) that corn/soybean systems must continue to have positive local and regional economic impact 4

How is Sustainability Defined? : 

How is Sustainability Defined? Based on U.S. Code Title 7, Section 3103 Satisfy human food and fiber needs Enhance environmental quality Efficient use of nonrenewable and on-farm resources Sustain economic viability Enhance the quality of life for farmers and society Simply stated -- sustainability means —economically viable, environmentally benign, and socially acceptable 5

Understanding Corn/Soybean Production : 

Understanding Corn/Soybean Production These systems and their energy issues involve: Genetic resources (including genetic engineering) Nutrient supply chain Equipment—tillage, planting, cultural, and harvest Pesticides—herbicides, insecticides, and fungicides Land use effects Soybean area increased 500% from 1950 to 2010 Ensured a consistent commodity supply but raised conservation concerns and increased fossil fuel use 6

Critical Corn/Soybean Energy Issues : 

Critical Corn/Soybean Energy Issues Dependent upon the system boundaries Are tillage, seedbed prep, weed control, fertilizer use, manufacture, and transport included? For what time period are evaluations being made? What heating values are being used for various energy sources? What assumptions are made regarding GHGs? Are the scales for each subsystem consistent and appropriate? 7

Economics of Corn/Soybean Systems : 

Economics of Corn/Soybean Systems Energy accounted for 44% of total operating cost for corn and 22% for soybean in 2004 Decreasing tillage can lower fuel requirements 8

Economics of Efficient N Use : 

Economics of Efficient N Use 9 N fertilizer is a high energy and cost input for corn Reduce input per unit output with Crop rotation, cover crops, manure management, banding, less fall application, soil testing, site specific management, stabilizers, or inhibitors Interactions with other management Reduce tillage, avoid excess herbicide and N rates Stover harvest may facilitate no-till adoption

Market Linkage Economics : 

Corn for ethanol links grain & energy markets Higher energy prices increases corn prices Also increases other production input costs High crop and fertilizer prices increases cost of incorrect application rates Increases benefit of soil testing Cellulosic ethanol production requires total cost to be competitive with other liquid fuels Must account for increased nutrient removal Must not increase erosion or decrease productivity Could decrease N2O emission or NO3 leaching loss Market Linkage Economics 10

What about Economies of Scale? : 

What about Economies of Scale? Current strategies have favored large farms Diversification could increase energy efficiency However, this may complicate management Perennial and woody species increase diversity How would this change affect current commodity support payments for corn/soybean producers? Including ecosystem service benefits in energy assessments is crucial but complicated by scale 11

Environmental Challenges : 

Environmental Challenges Climate change and land conversion are key components when quantifying energy issues for corn/soybean systems Rising temperatures increase evaporation and the amount of water in the atmosphere This increases the potential for fluctuations in local rainfall patterns and intensities Land conversion is more of an international issue but does affect CRP discussions in the United States 12

Life Cycle Assessments (LCA) : 

Life Cycle Assessments (LCA) LCA is a method for evaluating the full environmental impact of any industrial system Now being used to evaluate GHG emissions associated with biofuel relative to petroleum Changes in soil organic carbon (SOC) may be the largest source of biofuel GHG emissions SOC changes slowly and is highly variable, emphasizing the importance of continuing long-term field studies with corn/soybean systems 13

Market and Policy Effects on Energy Issues : 

Market and Policy Effects on Energy Issues Energy traditionally influenced grain markets through production and distribution costs (e.g., fuel costs, N fertilizer costs, transportation) A new relationship emerged in 2006 when agriculture was asked to supply bioenergy feedstock (i.e., grain ethanol or biodiesel) This led to Food vs. Fuel controversies 14

Market and Policy Interactions : 

Market and Policy Interactions Fluctuation in global production patterns (e.g., 2010 Russian wheat deficits), which are related to global weather patterns, rekindled the debate Therefore, understanding and having consistent global biofuel and energy policies is crucial for commodity price stability Petroleum prices will continue to be a factor 15

Mandate or Subsidy Effects : 

Mandate or Subsidy Effects Binding mandates create inelastic demand Enhanced productivity and feedstock research are crucial long-term investments 16

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A Landscape Vision for More Sustainable and Energy-Efficient Corn/Soybean Production 17

What Is a Landscape Vision? : 

What Is a Landscape Vision? Recognizing Nature’s Diversity! 18

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Wilhelm et al. 2010. Balancing economic drivers and limiting factors. Ind Biotech 6:271—287. Striving for Balance 19

Why Is Diversity Important? : 

Why Is Diversity Important? 20

A Diverse Landscape Provides: : 

A Diverse Landscape Provides: Multiple ecosystem services Increased energy efficiency Multiple feedstocks for bioenergy Enhanced nutrient cycling Multiple pathways for sequestering C Food, feed, and fiber resources Filtering and buffering processes Wildlife food and habitat Soil protection and enhancement Economic opportunities for humankind 21

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How Do You Implement This Vision? 22

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What are the water quality impacts of current practices? What are the air quality impacts? What cropping system is best for the landscape? Do we have the best spatial arrangement of plants on the landscape? Is the soil improving or degrading? Are crop and livestock production affecting environmental quality? Assess Current Practices 23

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Windbreak Know What Your Options Are Riparian Herbaceous Buffer 24

Design, Implement, and Verify New Strategies : 

Design, Implement, and Verify New Strategies For example, integrate bioenergy feedstock crops into sustainable corn/soybean production systems by using integrated simulation models and multiscale field and watershed validation data generated through research 25

Plan For Multiple Technologies : 

Plan For Multiple Technologies Multiple feedstock materials, including wastes Multiple conversion platforms Switchgrass Bagasse Wood Chips Waste Paper Corn Stover Biochemical / Fermentation (through sugar intermediates) Thermochemical / Pyrolysis (direct to building blocks CO, H2) Direct / Catalyst Embrace Multiple Solutions 26

What Barrier Must Be Overcome? : 

What Barrier Must Be Overcome? Stop addressing individual problems! A landscape vision must address bioenergy, air quality, water quality, soil quality, wildlife, C sequestration, rural development, and other issues as an integrated system (SWAPA+E+H). Switchgrass Erosion Water Quality Crop Residue Soybean Corn Grain 27

Summary and Conclusions : 

Summary and Conclusions Economic, environmental, and market factors affecting energy issues for corn/soybean production systems are reviewed in this Issue Paper Need to overcome barriers to energy conservation Climate variation and land use issues must be understood Consistent system boundaries must be established for effective GHG, LCA, and energy assessments 28

Research Needs : 

Research Needs Protocols to quantify energy flow in complex systems Quantify no-till effects on C sequestration and GHGs Quantify crop residue harvest on SOC and GHGs Holistic land management using integrated landscape management strategies and incentives Rural development and entrepreneurial opportunities using bioenergy as a catalyst, not as the endpoint Residual, coproduct, and renewable fuel uses Strive for consistent federal, state, and local bioenergy policies that stimulate private and public investment 29

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Any Questions? 30 For a free download of this Issue Paper, visit the CAST website at www.cast-science.org