Tuesday, November 6, 2007
165-10

On-Farm Oilseed Crushing and Biodiesel Production in the Upper Midwest.

Seth R. Fore and Paul Porter. University of Minnesota, 411 Borlaug Hall, 1991 Buford Circle, St. Paul, MN 55108-6026

While the economics surrounding large-scale oilseed crushing and biodiesel production have been fairly well documented, the economics of small-scale on-farm oilseed crushing and biodiesel production have largely been left to discovery by individual producers. In 2006 several farmers in Wisconsin and Minnesota began crushing oilseeds with small-scale on-farm oilseed presses. Depending on the press, the amount of oil produced ranges from 5,000 to 35,000 gallons per year. We conducted five case studies of these operations and have identified the rational for beginning these activities and several key economic and agronomic constraints associated with utilizing the pressed meal and oil. Meal is utilized as animal feed while the oil can be utilized as straight vegetable oil or converted into biodiesel. The dramatic change in crop prices since mid-2006 has influenced the economics of on-farm biodiesel production, causing farmers to evaluate alternative uses for the straight vegetable oil. These include utilizing the straight vegetable oil directly as a heating source or as a fuel for modified diesel engines.  Pressed oilseed meal generally contains more energy then the corresponding solvent extracted oilseed meal, and should command a price premium when used in feed rations.