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An Evaluation of Tennessee Soybean Growers’ Views on a New Generation Cooperative to Produce Biodiesel

Author

Listed:
  • Jensen, Kimberly L.
  • English, Burton C.
  • Menard, R. Jamey
  • Zhang, Yu
Abstract
Substituting petroleum diesel with biodiesel could decrease air emissions, reduce reliance on foreign oil, and help expand markets for U.S. farmers. Soybean producers can potentially capture this value-added by forward integrating the processing of soybeans into biodiesel via a New Generation Cooperative (NGC). Using probit analysis, this study examines factors influencing soybean producers’ willingness to participate in an NGC to produce biodiesel. Tobit analysis is used to examine the factors influencing the number of shares the soybean producer would be willing to purchase. Survey results indicate that over 70% of the soybean producers in the study group are interested in investing in an NGC to produce biodiesel. Among those producers willing to participate, the average number of shares they would purchase was just under 3,460.

Suggested Citation

  • Jensen, Kimberly L. & English, Burton C. & Menard, R. Jamey & Zhang, Yu, 2004. "An Evaluation of Tennessee Soybean Growers’ Views on a New Generation Cooperative to Produce Biodiesel," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 22(2), pages 1-11.
    • Handle: RePEc:ags:jloagb:59400
    DOI: 10.22004/ag.econ.59400
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    Citations

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    Cited by:

    1. Carlberg, Jared G. & Ward, Clement E. & Holcomb, Rodney B., 2006. "Success Factors for New Generation Cooperatives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 9(1), pages 1-20.
    2. Sparks, Garreth D. & Ortmann, Gerald F. & Lyne, Michael C., 2011. "PR - An Analysis Of Cooperative Biodiesel Production By Smallholders In Kwazulu-natal, South Africa (p444-462)," 18th Congress, Methven, New Zealand, 2011 345597, International Farm Management Association.
    3. Montefrio, Marvin Joseph F. & Sonnenfeld, David A. & Luzadis, Valerie A., 2015. "Social construction of the environment and smallholder farmers' participation in ‘low-carbon’, agro-industrial crop production contracts in the Philippines," Ecological Economics, Elsevier, vol. 116(C), pages 70-77.

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