Proceedings available at: www.extension.org/67646
In recent years, sharply rising costs of inorganic fertilizers have contributed to an increased demand for manure and compost in crop production acreage, transforming cattle manure from a valueless waste to a viable alternative to commercial fertilizer. If additional demand for manure as a bio-fuel were to arise manure could take on two distinct values, a fertilizer value and a fuel value. This potential “dual” value of manure begs several questions. What would the fertilizer and fuel markets of manure look like? Is there enough manure supply for the markets to operate independently? If not, which market would prevail? In essence, how, if at all, would manure’s potential value as a bio-fuel distort the traditional Panhandle manure market? A modeling framework was developed to assess the potential impacts of a manure-fired ethanol plant on the existing Texas Panhandle manure fertilizer market. Two manure-allocation runs were performed using a spreadsheet model. Run #1 allocated all available manure from dairies and feedlots to cropland as manure fertilizer; run #2 first allocated fuel manure to the ethanol plant and then allocated the remaining manure to cropland. Both model runs assumed a time horizon of one year and no antecedent nutrients in cropland soils. Other constraints included only irrigated acreages received manure and no supplemental fertilizer was used. The model revealed a 6.4% increase in cost per acre of fertilizing with manure for fields whose nutrient requirements were fully satisfied in both runs. The increase in cost per acre was likely due to an increase in hauling distances attributed to fewer CAFOs available for fertilizer manure. The model is not presented as a dynamic, systems model, but rather a static model with the potential to be incorporated into a more dynamic systems-based modeling environment. Suggestions for further model development and expansion including GAMS integration are presented.
3. MODELING MANURE FLOWS IN THE TEXAS
PANHANDLE IN RESPONSE TO FERTILIZER
PRICES, BIOFUEL DEMAND, AND OTHER
EXTERNALITIES
Gary Marek, Ph. D.
Research Engineer
USDA-ARS, Bushland, TX
Photo courtesy of Emalee Buttrey
4. Project Background
WTAMU Systems I class project:
Initial Q: Evaluate the economic
feasibility of a manure-fueled corn
ethanol plant in the Texas Panhandle
Revised Q: Under what conditions is it
economically feasible to fuel an EtOH
plant with manure in the Panhandle?
6. Mass & Energy Layers
• Manure
• Distillers Grains
• Water
• Natural Gas
• Corn
• Ash
7. Conceptual Model Schematic
Mass & Energy Flows
FEEDYARD
LAND
MANAGEMENT
UNIT
PANDA
ETHANOL
PLANT
manure
ash
natural
gaswater
CORN
DISTILLERS GRAINS
SEED
Adapted from image by Sharon Preece
8. System Manure Flow
• Time of Year
• Storage capacity
• Collection radius
• Price of fossil fuel
• Manure production rate
• Price of chemical fertilizer
• Fertilizer Value
• Fuel Value
• Agronomic Rate
• HHV Demand
• NPK Demand
9. Distillers Grains Effects on Manure
• Increases concentration of phosphorous
May increase land requirements, travel
distances, and management practices
• Decreases Higher Heating Value (HHV) (Buttrey et al.,2012)
18. Manure Value Calculator
INPUTS:
N & P conc. of manure N & P crop requirements
Price of inorganic N & P Hauling distance
Hauling costs Price of natural gas
Landfill disposal costs
OUTPUTS:
Manure value as N & P fertilizer
Manure value as an energy source
Net values after transportation
20. Market Structures
• Prior to markets operating, a hypothesis can be used
to simulate potential markets
• Local market conditions determine the type of
market (Zering 2010)
A. Sufficient # of buyers & sellers, prices adjust frequently
to clear the market
B. Single seller, multiple buyers (monopoly), seller sets
price
C. Single buyer, multiple sellers (monopsony), buyer sets
price
D. Few buyers & sellers, potential for “hold up”, whoever
can survive the longest without the other sets price
23. Explicit Model
• Database information
• Manure fertilizer value modules
• Manure fuel value modules
• Transaction Models
• Dynamically linked system layers
How do we synthesize all of this information?
24. System Boundary
Panda
• Feedlots
• Dairies
• Manure collection radius of
30 miles from proposed
Panda plant
41 feedlots
3,000 – 100,000 head
21 dairies
250 - 5,000 head
• CAFO capacities estimated by
industry and extension
personnel
• System Boundary - Manure
dispersion radius of 20 miles
from each CAFO
• Boundary encompasses
4,172,815 acres
25. Satellite Imagery
Panda
• Feedlots
• Dairies
• DOQ’s from Texas Natural
Resources Information System
(TNRIS) added to the project
• Used to estimate
irrigated, dryland, rangeland,
and municipal acreages
26. Irrigated Land
• DOQ’s from Texas Natural
Resources Information System
(TNRIS) added to the project
• Irrigated land calculated by
digitizing center pivot circles
4,935 circles
740,765 acres
• Dryland acreage was
calculated by subtracting
irrigated acreage from total
arable land
3,226,894 acres
• Rangeland/Municipal Acreage
205,156 acres
27. Grid Overlay
• Grid constructed to address
spatial aspects of project
1,023 cells
3 mi x 3 mi
• Cells assigned crop
composition and yield values
based on county NASS data
• Road distance from centroid
of every cell to each CAFO
was calculated using ArcGIS
Network Analyst algorithm
28. Simple Optimization Model
(MS Excel)
A B C D E G
1
2
3
4
5
7
8
8
9
10
CAFOS (feedlots & dairies)
LMUCells
… n=62
n=1,023…
30. CAFO Attributes
• Feedlot or Dairy
• Annual manure production capacity
• As-collected manure production
• Nutrient concentrations of CAFO manure
31. LMU Cell Attributes
• Acreage characterization and allocation
(irrigated,dryland, rangeland/municipal)
• Nitrogen and phosphorus requirements
(based on county NASS crop composition and
average yield values)
• Road distance to CAFO
32. Array Calculations/Switches
• Tons of manure required to fulfill nitrogen and
phosphorus requirements
• Fulfill nitrogen or phosphorus demand
• Net price per acre to fulfill nutrient
requirements
33. Model Assumptions & Constraints
• One year time horizon
• Manure to satisfy nitrogen requirements
• No antecedent nutrients
• Only irrigated acreage would receive manure
• CAFOs and Panda operate at 100% capacity
• All manure allocated to LMU (no storage)
• No supplemental commercial fertilizer
• Zero value for organic matter
• Price of manure held constant ($2.50 per ton)
• Hauling & spreading costs held constant ($0.24 per ton mile)
34. Model Runs
• Model run #1 – Manure from all 62 CAFOs
allocated to LMU
• Model run #2 – Manure from closest feedlots
allocated to Panda. Manure from the
remaining 55 CAFOs allocated to LMU
35. Subscription Ratio
A B C D E G
1
2
3
4
5
7
8
8
9
10
CAFOS (feedlots & dairies)
LMUCells
… n=62
n=431…
RATIO 3.2 0.9 10.5 6.5 1.5 0.25
RANK 3 5 1 2 4 6
36. Subscription Ratio (i=1)
A B C D E G
1
2
3
4
5
7
8
9
10
11
CAFOS (feedlots & dairies)
LMUCells
… n=62
n=431…
RATIO 3.2 0.9 10.5 6.5 1.5 0.25
RANK 3 5 1 2 4 6
37. Subscription Ratio (i=2)
A B C D E G
1
2
3
4
5
7
8
9
10
11
CAFOS (feedlots & dairies)
LMUCells
… n=62
n=431…
RATIO 3.2 0.9 1.0 6.5 1.5 0.25
RANK 2 4 N/A 1 3 5
38. Subscription Ratio (i=2)
A B C D E G
1
2
3
4
5
7
8
9
10
11
CAFOS (feedlots & dairies)
LMUCells
… n=62
n=431…
RATIO 3.2 0.9 1.0 6.5 1.5 0.25
RANK 2 4 N/A 1 3 5
39. Ranking LMU Cells within a CAFO
• NPA for manure to NPA for commercial
fertilizer ratio
Assumed Co-Op at a distance of 10 miles from every cell
• Fields allocated until CAFO manure is depleted
• Partially fulfilled fields returned to array with
updated nutrient and acreage requirements
40. CAFOs with Unallocated Manure
• Model forced CAFOs to allocate all manure
produced
• Taking off point for transaction modeling
• To move manure, would likely have to
discount price
Introduce this question as a researchable question as we drill down into the quantitative level. We are first exploring the manure flow stream because we are manure guys.
This body of work originated as a systems I class project. The original project question posed was “Is it economically feasible to use manure as a fuel for ethanol production?” In order to answer that question, one would have to be presented a set of conditions and the answer “yes” or “no. This is not a systems question. A better question would be… ”under what conditions is it economically feasible to use manure as a fuel source for ethanol production?” In fact, why would we consider manure in the first place? …We’ll get to that.
This body of work originated as a systems I class project. The original project question posed was “Is it economically feasible to use manure as a fuel for ethanol production?” In order to answer that question, one would have to be presented a set of conditions and the answer “yes” or “no. This is not a systems question. A better question would be… ”under what conditions is it economically feasible to use manure as a fuel source for ethanol production?” In fact, why would we consider manure in the first place? …We’ll get to that.
This body of work originated as a systems I class project. The original project question posed was “Is it economically feasible to use manure as a fuel for ethanol production?” In order to answer that question, one would have to be presented a set of conditions and the answer “yes” or “no. This is not a systems question. A better question would be… ”under what conditions is it economically feasible to use manure as a fuel source for ethanol production?” In fact, why would we consider manure in the first place? …We’ll get to that.
MNV for the area of concern. Discus the nutrient thresholds and associated diminishing returns with application beyond them.
Explain that HHV of manure is a function of ash and moisture content. We as researchers spent a lot of time figuring out how to manage for low ash, high BTU manure.
Introduce our manure value calculator model. List main assumptions: 1) fertilizer values are for one growing season – crop requirements are determined by soil test. 2) assumes landfill will accept ash fraction from EtOH plant, etc. Mention that most of the model parameters are adjustable variables. Notice we have no flow associated with the model, this is a calculation module that will provide data for flow direction.
Generic conceptual transaction model. We are not sure of the “shape” of the area between PB and PA.
Introduce market structures according to Zering
Market structure flow chart, explain how storage or regulatory pressure may lead to expedited manure removal.
Market structure flow chart, explain how storage or regulatory pressure may lead to expedited manure removal.