1. Department of Economics Social and Economic Issues of Pyrolysis Processing Systems and Biochar Pyrolysis and Biochar Workshop Ames, Iowa November 30, 2009 Chad Hart Assistant Professor/Grain Markets Specialist chart@iastate.edu 515-294-9911

2. Department of Economics Crop Productivity Source: USDA - NASS

3. Department of Economics Crop Productivity Boost from Biochar

4. Department of Economics Agricultural Production Costs Source: USDA, Economic Research Service

5. Department of Economics Change in Economic Incentives CornSoybeansWheat Yield(bu/acre)162.943.344.4 Price($/bu)3.559.204.85 Revenue($/acre)578.30398.36215.34 Costs($/acre)535.77350.67273.55 Net($/acre)42.5347.69-58.21 Current cropping decisions based on grain revenues and costs Harvest of biomass and reincorporation of biochar could significantly change incentives Higher crop yields, lower crop prices Biomass revenues Biochar costs Carbon policy benefits/costs It’s the creation of a new set of markets.

6. Department of Economics Source: NREL Price Variations

7. Department of Economics Source: NREL

8. Department of Economics Source: USDA - Census of Ag.

9. Department of Economics Source: USDA - Census of Ag.

10. Department of Economics Source: USDA - Census of Ag.

11. Department of Economics Sources: USDA - Census of Ag., ISU - Mike Duffy

12. Department of Economics Sources: USDA - Census of Ag., ISU - Mike Duffy

13. Department of Economics Source: USDA, Agricultural Prices, Oct. 30, 2009

14. Department of Economics Portable Biochar Facilities Source: Biochar Systems

15. Department of Economics Government Policies  Biomass Crop Assistance Program  To support production of crops for bioenergy and assist with collection, harvest, storage, and transportation of biomass to conversion facilities  Matching payments  $1 for each $1 per ton paid by conversion facility, up to $45 per ton, for 2 years  Water Efficiency via Carbon Harvesting and Restoration (WECHAR) Bill  Would establish loan guarantees and grants for biochar projects

16. Department of Economics Thank you for your time! Any questions?