SURE CONFERENCE
CONFERENCE, 2009
Renewable Energy: Landowner Opportunities
Dan Conable
Central New York Land Management, LLC
Consulting firm
† Research
consulting – biomass supply analysis
† Operations modeling for agricultural production
businesses
† Advice
Ad i for
f landowners
l d
and
d investors
i
t on options
ti
for
f
productive uses of open land
† Analysis
y of sourcing
g options,
p
, costs and purchase
p
options
p
for companies seeking agricultural feedstocks for
energy projects (grasses, oilseeds, new energy crops)
Rural land – the landowner perspective
p p
We often assume:
1) “The
The farmer”
farmer is the
key decision maker
with regard to rural
land use
2) Financial
considerations
id ti
rule
l
In fact:
1) Farmers (of various
types) own only
about half the open
l d
land
2) Money is often a
secondary
consideration
Reasons for rural land ownership
p
12%
2%
Agricultural use
4%
35%
Current residence
Forestry
7%
LT investment
8%
Hunting
2nd Home
10%
Future residence
22%
Other*
*Most frequent: keeping land open, maintaining open
space, maintaining nature or habitat
Source: NYS Rural Land Survey, 2004;
weighted by acreage
Land is a store of diverse values…
For the landowner --
“This is where we’re going to built our dream
house”
“I grew up here, and I guess I’ll die here, too”
“I make my living here”
This is where I…
I
“This
…hunt”
…snowmobile”
bl”
…ride my horse”
Land is a store of diverse values…
For society -”What an exquisite view!”
“A strong farming sector keeps small towns
alive”
“he
The critters were here first!
first!”
“Resource conservation is a community concern”
“can’t you do that in someone else’s back yard?”
Wildlife
It’s the same resource,, but…
habitat
College
tuition
My back
yard
Where I
spread manure
My building
lots
My view
Separable values and value streams
Development
D
l
rights
i h ((permanent
and term easements)
gas leases
Wind and g
Hunting rights
Land reserve programs
Land rental – short term
L
Leases
which
hi h encumber
b lland
d title
titl
“Environmental services”
Biomass production incentives?
Grasses
Advantages: Known technology; sun dried
Disadvantage: Not much cheaper to produce than forage hay
C
Crop
residues
d
Advantages: No cost except handling costs
Disadvantages: Most have alternative uses (soil enhancement, feed)
Sh b willow
Shrub
ll
Advantages: Many years of output with very little management
Disadvantages: High establishment cost; long-term commitment
Ol d
Oilseeds
Advantages: High energy output/acre; known technology
Disadvantages: Value of biodiesel; competing uses for oil
G
Grain
crops
Advantages: Known technology; highest energy output per acre
Disadvantages: High cost, high input production systems
Energy
gy crops
p todayy
Corn – itit’ss back! (almost)
Oilseeds – may be coming; policy environment
critical
Willow – numbers aren’t bad; watch wood chip
demand
Grasses – waiting for a biomass price bump,
evolution of the pellet market, killer yeasts and
enzymes
Crop residues – probably not around here
Thank you
info@cnylm.com
315-529-0634