Impacts to the Agricultural Sector

Production, prices, and acreage from each of the 305 (ASD) are determined independently and aggregated to obtain information at the state level for barley, corn, cotton, hay, oats, rice, sorghum, soybeans, dedicated energy crops, wheat, corn stover, and wheat straw. In addition, information on the cost of production of dedicated energy crops by ASD is transferred from the POLYSYS solution, along with national energy production estimates for electricity generated from fuel sources, including animal waste, food waste, and wood; ethanol generated from corn, corn stover, wheat straw, dedicated energy crops, and wood; and biodiesel from yellow grease and soybeans. To incorporate the POLYSYS data into IMPLAN for the agricultural (non forest) impacts, the following procedure was followed: 1) the change in Total Industry Output (TIO) is calculated for corn, sorghum, oats, barley, wheat, soybeans, cotton, and rice including changes in proprietary income and government payments; 2) for states growing dedicated energy crops and/or using corn stover and wheat straw, TIO, Employment, Total Value Added (employee compensation), and the Gross Absorption Coefficients (GACs) are calculated for a new agricultural fuel feedstock industry; 3) Total Revenue (TR) from POLYSYS is equated to TIO and is calculated by multiplying the price of the cellulose by the quantity produced; 4) the demands for inputs are represented by GACs and are developed by dividing cellulose input expenditures by TIO; and 5) labor costs and the number of employees are estimated (English, Menard, Wilson, De La Torre Ugarte, 2004).

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