Economics of Biochar
Remark: The references mentioned in square brackets [ ] relate to the references used in the scientific report of dr. Arnold on the Biochar Calculator. You will find these references under References. The text is an excerpt of the scientific report.
Few economic sectors are challenged as much as agriculture by climate change and its consequences in form of droughts, wildfires, floods, and extreme weather events leading to soil degradation, related decline of soil fertility and crop yields. With this background, the agricultural sector is expected to pay its share in fighting climate change by reducing the agricultural greenhouse gas emissions – especially from animal husbandry and manure management.
On one hand, the production costs of farms are rising due to necessary environmental standards in almost all areas; on the other hand, there is little or no scope to pass on increased costs to retailers and to end-consumers in the face of global competition and of the dominance of large retail chains. Efficiency requirements are driving the trends towards expansion and
concentration of production sites, intensification and industrialization of production methods, and completion of supply and value creation chains. In such a professional environment the romanticized image of “our small farm” is often falling by the wayside. As a result of this process and of the associated loss of public acceptance, agricultural emissions and other negative environmental impacts are increasingly becoming the focus of public attention and legal regulation.
Regarding regulation important topics and objects are soil treatment, use of potentially hazardous substances including pesticides and herbicides, soil fertilization and in particular the associated seepage of the basic fertilizer substances, Nitrogen, Phosphorus, and Potassium, into the surface- and groundwater bodies. Climate and environmental protection, however, has to pay off for the farmer to be implemented successfully and in time. Application oriented agronomic tools are necessary to support the decision makers, i.e., the farmers, in analyzing and evaluating the expectable economic impacts of changed cattle feeding, manure and slurry handling and soil treatment methods for their local and highly individual farm conditions.
Therefore, the Biochar Calculator was mainly developed as a decision-supporting instrument for farmers and others who are interested to have a closer look at the potential benefits of integrating biochar into their operational practices.
How it works
Anyone who is interested in the economic effects of individual biochar applications is able to calculate her or his own involvement. In order to use the Biochar Calculator, the user registers and chooses from a dropdown list what type of application is aimed for. That choice will automatically adjust the settings of the calculator. For example, farms with dairy cows will get a different set of relevant questions compared to a greenskeeper or tomato farmer.
In a second step, the user answers all questions asked in the online questionnaire. By pushing the “Calculate” button, the calculator shows the results, which are based on an extensive meta-analysis of the current scientific data, which was collected and evaluated by Dr. Arnold, one of the leading German experts on biochar. Until today, there are over 250 scientific reports evaluated and built into the calculator. The data provided by the user is highly adapted to the actual location where biochar is applied and the individual conditions of the farm. The amount of animals held, individual prices of produce, size of the farmland and farmland prices as well as soil quality (pH and soil organic matter) is put into the input page as well as the type of corps, which are grown, the amount of mineral fertilizers used and how much irrigation is required. All these inputs are required to provide a clear economic picture of a biochar application.
The calculation base is chosen with great diligence and a solid margin of error, meaning a rather conservative evaluation approach was followed. The Biochar Calculator shows not only the total net earnings of the biochar application, but also the net biochar input costs and volumes needed, based on the prices of the chosen biochar vendor and its product quality. There are also shown the various application methods, which are investigated by the user, as for example
- Biochar used as feed biochar for animals,
- Bedding biochar,
- Slurry biochar,
- Biochar used as soil amendment.
Each item will show individually the suggested consumption of biochar, the relevant input costs and net earnings. In addition, the calculator shows also the environmental effects of the suggested application:
- The amount of greenhouse gases bound in the soil, inclusive the carbon sink that is totally created through that recommended biochar application in US tons of CO2.
- In addition, it shows also the saved amount of nitrate in US tons of NO3.
- Also, the total amount of ammonia is shown as US tons of NH3 at that farm.
The shown environmental effects are the background for the application of Carbon Credits, which the Biochar Calculator will apply for, for the benefit of the user, minus a small handling fee. Based on these evaluations, the user is able to make an informed decision of her or his individual biochar project. It will provide a clear picture of what can be expected as a total financial and environmental outcome.