Economic Value of Burning Bluegrass Residue: Current Status

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Economic Value of Burning Bluegrass Residue
Current Status

• L.W. Van Tassell
• University of Idaho

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Objectives

• Examine the impact of the no-burn ruling on
  bluegrass seed production in the State of
  Washington.
• Examine the profitability difference in current
  burn and no-burn production techniques.

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Economic Analysis

• Establishment year with no production
• Burning
• 7 year stand life
• No-burn
• variable, 4-yr max stand life
• Rake, Bale, Stack, 2x Harrow

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Economic Analysis

• Costs based on Hinman and Schreiber
• Establishment
• approximately 210 per acre
• Burn
• 200 to 271 per acre
• No-Burn
• 227 to 378 per acre

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Economic Analysis

• Seed price
• 0.74 per pound
• Residue
• Sold at 0, 20, or 40 per ton

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Economic Analysis

• Determined net present value of the burn and
  no-burn alternatives
• Annuity equivalent determined for each
• Difference between annuity equivalents was
  determined
• 4 discount rate used in present value analysis

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Bluegrass Seed Yield Scenarios
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Bluegrass Seed Yield Scenarios
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Bluegrass Seed Yield Scenarios, Value of Residue,
and Difference between Burn and No-Burn
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Bluegrass Seed Yield Scenarios, Value of Residue,
and Difference between Burn and No-Burn