I recently co-authored a summary of the economics of on-farm biodiesel with Netaka White from the Vermont Sustainable Jobs Fund. This report collects the economic and logistic learning from the past seven years of the Vermont Bioenergy Initiative (VBI). The VBI has supported a wide range of sustainable fuel related efforts in Vermont. Along with agronomic research by Heather Darby’s Northwest Crops and Soils team funding has supported efforts to streamline on-farm processing and production systems, improve safety, expand storage capacity and ultimately to expand adoption of sustainable fueling practices.
We showcase five Vermont on-farm biodiesel operations that use a variety of equipment to reach their different biodiesel and feed production goals. We use data from these farms, collected over several years, to run a detailed economic analysis of a hypothetical 100,000-gallon per year on-farm biodiesel facility. A second hypothetical case based on a 13,000-gallon per year facility is also reviewed. Finally, we explain in ten steps how to estimate breakeven and profitability in both cases. The information and steps are applicable to any farmer interested in fuel and feed self-sufficiency or generating additional farm income. The analysis was done using the Oilseed Cost and Profit Calculator I developed under this program.
This figure illustrates how the cost of production is distributed when seed is pressed to meal and oil.
In the two examples above, one a 100,000 gallon per year commercial enterprise, and the other a 13,000 gallon per year operation, both used representative sunflower production data from five Vermont farms. Over a range of crop production costs between $100 and $200 per acre, and yields between 1,000 and 2,000 pounds per acre, at current market prices the combined worth of the meal and the oil, or the meal plus the biodiesel are shown to be profitable.
Both scales of operation can also see a payback on their investment within a reasonably short time frame when selling meal and biodiesel or selling meal and using biodiesel to reduce enterprise expenses; 100,000 gallon per year payback is 6.4 years & 13,000 gallon per year payback is 9.4 years. This is based on current, relatively low fuel costs. Should diesel prices reach $5 a gallon, simple payback could occur in less than 12 months for the 100,000 gallon per year case and less than 3 years for the 13,000 gallon per year case.
Thanks also to Rachel Shattman of Bella Farm for hosting a charrette walkthrough of her wash/pack and storage facilities. That provided a very real component to the course (and the Apple Crisp was excellent as well!)
Demand for on-farm cold storage of produce and other Vermont agricultural products is increasing as local markets for these goods expand. I receive many inquiries regarding CoolBotsTM, an adaptation of a window air-conditioner to make a cooler out of an insulated space. This article is intended to collect related resources in one place and to also highlight some considerations adopters of CoolBots should be aware of.
Plan for maintenance (cleaning the coil, off-season storage, protection from elements, etc.)
A farmer-built cooler (photo from storeitcold.com).
These systems utilize a commercially available controller ($299) to allow the AC unit to run with a lower temperature than normal. Store-It-Cold, The manufacturer’s website has excellent resources and FAQ’s. They include a list of AC units that they have had positive experiences using. They are also very clear about who should consider NOT using a CoolBot. Applications for which the CoolBot is not well suited, according to the manufacture, include;
rapid “pull down” of temperature (e.g. high levels of field heat or frequent exchanges of product)
freezers – CoolBots perform best above 36 °F.
sites with many door openings per day (e.g. > 6 times per hour)
running through the winter – not a show stopper, but you need to be more careful about which AC unit you choose
Other things to be very aware of, according to the CoolBot controller manufacturer, include
A CoolBot installation (photo from storeitcold.com)
A report commissioned by NYSERDA summarizes the cost, energy efficiency, and greenhouse gas emission benefits of a CoolBot installation when compared to a conventional walk-in cooler system at certain conditions. The cost estimate of the CoolBot system (15,000 BTU/hr) is $750 installed compared to $4,400 for a conventional system (8’x10′ cooler box cost not included).
The authors conclude that a CoolBot system can result in approximately 230 kWhr/year of energy savings ($30/year at $0.13/kWhr VT average) when cooling 100 ft2 of cooler floor area to 35 °F (assumes Albany, NY conditions). It is important to note that this analysis highlights the main energy efficiency benefit of the CoolBot system comes from the reduced operating time of evaporator fans. High efficiency fans and improved controls exist for conventional walk-in systems and they are even supported by rebates from Efficiency Vermont. When the CoolBot system was compared with a conventional cooler that also had evaporator fan controls, the savings went the other way; i.e. the conventional walk-in system resulted in 74 kWhr/year savings.
A recent report from the USDA ERS sums it up this way, “use of energy along the food chain for food purchases by or for U.S. households increased between 1997 and 2002 at more than six times the rate of increase in totaldomestic energy use. … The use of more energy-intensive technologies throughout the U.S. food system accounted for half of this increase, with the remainder attributed to population growth and higher real (inflation-adjusted) per capita food expenditures.”
Some of the loss occurs in storage, and I think we all can agree that we can do better with our storage practices. Regardless of whether you are root cellaring, using a CoolBot(TM) or a commercial walk-in cooler, the principles remain the same. Some loss occurs in transport and distribution which speaks to the benefit of the broader food system considerations espoused by UVM’s Food Systems Spire and the Vermont Farm to Plate Initiative. Some, of course, occurs in the kitchen or in consumer storage and suggests we have some work to do with consumers as well.
As one grower recently said to me, “By the time we put food in our farm cooler, 99% of our cost is sunk into that product. We gotta pay attention to what goes on in there and make sure we get paid for it.“
As I’ve mentioned in several other posts, I think the continual monitoring of conditions in greenhouses and food storage spaces is incredibly important for quality and safety and insightful for any operation. There is a really clever design for a do-it-yourself temperature monitoring system called Fido, on the FarmHack site. It uses an Arduino control and electronics platform, a cheap cell phone, and a few other pretty inexpensive pieces to do the job.
“A farmer-built electronic tool that can monitor greenhouse temperature, record greenhouse data, and alert the farmer to problems in the greenhouse via cell phone text message. This tool will be much more affordable and useful than commercially available greenhouse alarms (which rely on landline connections or internet connections, which usually aren’t available in the greenhouse).“
I’ll be trying to add RH monitoring to this soon, and will update the post when that is complete.
The presentation slides are available at the VVBGA’s website. I’m still very grateful for the responses to the food storage survey, and we discussed these at the meeting. I also highlighted 5 things I think are critical considerations for VT growers storing vegetables and berries.
Zoned Storage – While many are zoning (or grouping) their stored products based on optimal temperature and relative humidity (RH), it is also important to consider a zone for pre-cooling product as it comes into storage. The sudden addition of product with field heat and elevated respiration can contribute significantly to the cooling load in the room and could lead to slightly warming other crops already in storage. Additionally, we talked about the need to consider ethylene production of crops and also their sensitivity to it; sometimes requiring outside air exchange to remove the ethylene. Most are familiar with ethylene production from apples, but even common vegetable crops also produce some. Storage conditions for main crops as well as respiration rates and ethylene emission rates can all be found in USDA Handbook 66.
Measurement and Monitoring – It is understandable that one should expect a cooler to be at the temperature you set on the thermostat. But I’m a believer in secondary, accurate measurement to confirm storage conditions. This means both temperature and RH. I urge growers to check it regularly (daily), and to keep track in some sort of log so that trends are captured. This can take the form of an advanced remote data monitoring system, but it can also take the form of a simple clipboard or notebook. The important thing is that the conditions are actually measured with an accurate device such as a certified and calibrated thermohygrometer or sling psychrometer and be recorded. Here’s a video showing how to use a sling psychrometer (equally useful in a greenhouse or cooler, although I recommend “slinging” for 1 minute or more, taking 3 readings to check for stability, and using a psychrometric calculator to determine RH as the slide calculator on the device is not terribly accurate.)
Scouting – Despite all the best intentions; zoning your storage and confirming the conditions, sometimes you still run into problems. There are varietal differences in storage and many other factors that will influence how the crops keep in storage. So it is important to “scout” the storage as well. This can be daunting with bins and boxes piled high, but catching a problem early could help prevent a major loss. It is possible, as well, that you have to deviate from the published references for storage conditions for a certain crop. The verification of the storage conditions is the measurement step above, but the validation is the crop quality. The proof is always in the pudding.
Cooler Audits – It is hard to make time to stop and smell the roses, and it is hard to take time to stop and audit your cooler. But there are things you can do on a routine basis that take little to no additional time.
Check Door Seals – Walk inside the cooler, shut off the lights and look around the door for daylight. If you find spots with light shining through look more closely at the seal in that area, it may need repair or replacement. Look also for frost (on freezers) or condensation (on coolers) which can also be signs of air leakage.
Door Closure Tightness – Even if your seals are in good condition, the door must shut snugly to have them work. Most commercial cooler doors have adjustable latches. Make sure there is no play in the latch when the door is closed, and adjust as needed so it closes tightly.
Mold, Condensation – Keep an eye out for mold and/or water condensation, this may point to air circulation issues or dead spots of air flow that need to be addressed.
Noise – Noise is energy, and if you get to know the typical “hum” of your compressor and fans, you’ll be able to tell when something is amiss. New noises or more frequent operation of the compressor can signal a significant change in the refrigeration system (a higher than normal load, or heavier work than normal.) Keep an ear out for new noises and do a complete walk around on a regular basis to catch maintenance issues early.
Coil Cleaning – The air coils are the lungs of the system, and they need to be clear of debris. Regular coil cleaning should be added to any preventative maintenance or seasonal job list. If your system can’t reject heat (either inside the box or outside the box), you’re not cooling as effectively as you could. This definitely means reduced efficiency and increased energy use, but it could also mean reduced storage efficacy and premature spoilage.
Mechanical Maintenance – A trained mechanical contractor should inspect your system on a regular basis (yearly prior to your main storage season). This will help minimize the chances of system failures and (worse) crop loss.
Technical Resources – There are several excellent resources available on crop storage. The New England Vegetable Guide is an excellent overall crop guide that includes basic storage information. To dive a bit deeper, look at the USDA Handbook 66, note that the online edition has increased detail than the last print edition. I also recommend the UC Davis Postharvest Technology site which has a wide array of searchable resources, many of which are crop specific. If you get real deeply involved in environmental control (temperature and humidity), you might want to learn more about psychrometric charts and calculators. These allow you to very accurately understand the relationship of water vapor and air and are especially useful when used with a sling psychrometer.