The regional effects of a biomass fuel industry on US agriculture

• We look at the potential competitiveness of a mature biomass fuel (BF) industry in the US.
• We model a land policy that allows BF-cattle competition for forage, crop residues, and pasture.
• We estimate the cost reductions and welfare gains associated with modifying the land use policy.

This study looks at the potential competitiveness of the emerging biomass-based biofuel industry in the current economic environment. A simulation model suggests that a mature biomassbased biofuel industry is potentially competitive with gasoline, and capable of filling a significant fraction of motor fuel supplies. However, the existing land policy has a narrow definition of agricultural land for a biomass-based fuel industry. A broader definition of agricultural land suitable for biomass inputs would reduce biofuel processing costs, relieve the food versus fuel conflict, and increase the net gain to fuel consumers, food consumers, and producers of food and fuel.