Farmer Decision-Making in Energy Crop Production

Farmers’ choices to cultivate energy crops are shaped by a confluence of economic, environmental and social drivers. Economic considerations include comparative profitability of feedstocks versus conventional crops, access to subsidies or carbon payments and perceived price volatility. Agronomic factors such as soil suitability, water availability and required machinery influence the technical feasibility of dedicated energy crops or use of agricultural residues. Policy frameworks and market incentives—ranging from biofuel mandates to carbon credit schemes—play a critical role in reducing investment risk and guiding land‐use change towards renewable feedstocks.

Beyond economics, social and cultural dimensions exert strong influence. Trust in institutions, local cooperation networks and farmers’ perceptions of rural identity affect willingness to trial novel crops. Risk preferences and anticipated returns over multi-year rotations further shape adoption decisions, especially for long-lived perennials. Spatial attributes of the farm—such as field heterogeneity and proximity to processing facilities—also interact with personal objectives to determine whether farmers convert marginal land or integrate feedstocks into existing rotations.

Global case studies illustrate that tailored incentive structures, participatory extension services and targeted research are essential to align farmer aspirations with broader decarbonisation goals. Understanding the interplay of financial, technical and social factors is key to designing policies and business models that support sustainable scaling of energy crop production without compromising food security or rural livelihoods.

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Farmer Decision-Making in Energy Crop Production publication trend

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Technical terms

Bioenergy crops: Plant species grown specifically for conversion into biofuels, power or heat, including perennials like miscanthus and fast-growing coppice willow.

Short-rotation coppice (SRC): A system of repeatedly harvesting woody species on a short cycle (typically 2–5 years) for biomass production.

Social capital: The networks, norms and trust that facilitate collective action and influence individuals’ adoption of innovations.

Marginal land: Agricultural land of low productivity or limited suitability for food crops, often targeted for energy crop cultivation to avoid food–fuel competition.

Spatial microsimulation: A modelling approach that combines spatial data with economic and environmental parameters to assess land-use outcomes at fine scales.

References

1. Social Capital, Trust, and Cultivation of Bioenergy Crops: Evidence from Germany and Greece. Agriculture (2024).
2. A spatial analysis of the economic returns to land‐use change from agriculture to renewable energy production: Evidence from Ireland. GCB Bioenergy (2024).
3. Prospects for dedicated energy crop production and attitudes towards agricultural straw use: The case of livestock farmers. Energy Policy (2014).