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In 2002 Tennessee produced approximately 35.7 million bushels of soybeans. University of Tennessee researchers say this is well above the 9 million bushels required to support a 13-million gallon biodiesel poduction plant.

(KNOXVILLE, Tenn.) - Tennessee soybean producers could and would support a 13-million gallon biodiesel plant, according to two studies performed by agricultural economists at the University of Tennessee.

The first study determined that 9 million bushels of soybeans would be needed to support a 13-million gallon biodiesel production plant, said Dr. Burton English, a professor of agricultural economics and a member of the research team. Last year the state produced approximately 35.7 million bushels of soybeans - well above the required 9 million bushels.

"We also examined seven potential locations for such a biodiesel processing facility and concluded that a location along the Mississippi would be the best location," English said. The river's transportation network, location of feed demand and the location of the state's primary areas of soybean production supported locating the plant along the Mississippi, he said.

However, he added, that if demand for biodiesel was concentrated in a central location within the state, then a location closer to that demand center might be better. An example of this might be an electric utility that currently generates electricity with diesel generators.

A second study evaluated perceptions and characteristics of Tennessee soybean growers. "Our results indicate a strong interest on the part of soybean farmers in selling their soybeans to a biodiesel production plant," English said. "If 9 million bushels are required to provide sufficient feedstock for a biodiesel production plant, more than enough of our producers would be interested in supplying soybeans to support the plant," he said.

The survey results also indicated that state producers are interested in forming a cooperative to produce biodiesel. According to Dr. Kim Jensen, another UT agricultural economist who worked on the project, a plant of this scale would cost about $37 million to build. "Our survey results suggest that Tennessee producers are willing to invest a portion of this by participating in a new generation cooperative," Jensen said.

In addition to English and Jensen, the research team included Jamey Menard, an agricultural economics research associate.

The studies were funded in part by the Soybean Promotion Board, Tennessee Department of Agriculture, Tennessee Farm Bureau Federation, USDA's Rural Development, and TVA.

Complete results are available online at http://web.utk.edu/~aimag/.

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Contacts: Dr. Burton English, 865-974-3716; Patricia McDaniels, 865-974-7141