The economic feasibility of producing ethanol from sweet sorghum juice is projected using Monte Carlo simulation models to estimate the price ethanol plants will likely have to pay for sweet sorghum and the uncertain returns for ethanol plants. Ethanol plants in high yielding regions will likely...

A Monte Carlo simulation model was constructed to analyze the economic feasibility of growing algae as a renewable fuel source. Increasing growth rates, pond water depth, oil content, and facility size are important for ensuring the economic viability of a commercial algae facility.

One of the most fundamental and traditional risk management tools available to agricultural producers is a savings account. Cash reserves in savings provide a safety net for producers, allowing financial obligations and living expenses to be met when unexpected shortfalls in income occur. Crop...

The objective of this study is to demonstrate the benefits of quantifying the economic viability of a proposed agribusiness under risk relative to a feasibility study which ignores risk. To achieve this objective, the economic viability of a 50 MMGPY ethanol facility in Texas is analyzed over a...

The Base and Yield Update Option Analyzer (BYA) is a decision support tool for analyzing the economic consequences of the Base Acre and Payment Yield update options in the 2002 farm bill. The BYA is provided by Texas A&M University for educational purposes and is not intended to replace or...

The levels and risk-free nature of rice market transition payments associated with the FAIR Act of 1996 have encouraged many rice landowners to reconsider their tenure contracts. A methodology for comparing landowners' decision to "self-operate" versus "rent to a tenant" is presented.

In anticipation of the new farm bill, seventeen representative rice farms from six different rice-producing states have been analyzed to compare the continuation of the FAIR Act provisions with the House proposal, H.R. 2646. Each farm was simulated assuming each policy would be in place for the...