Second-generation bioenergy feedstocks stand poised to become a key
component of the nation’s agricultural and energy sectors, yet few studies have examined farm supply response using survey information. We use contingent valuation data from farmers in south western Wisconsin to develop ex ante supply estimates for two prospective feedstocks—corn stover and switchgrass—in terms of farmers’ extensive and intensive acreage decisions. Supply response is found to be price inelastic and spatially fragmented, making widespread production unlikely in the near-term. However, heterogeneity in farmer reservation prices suggests that agglomerations or “hot spots” of feedstock supply could arise at local or regional levels.
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