Miscanthus: Another income-generating cash crop (Part Two of Two)

by | Jan 19, 2021 | 5 Ag Stories, News

Steve Schomberg, who farms in Muscatine County, started growing Miscanthus in 2013 for the University of Iowa. Schomberg continues his contract work, but also grows Miscanthus on 15 commercial acres.

“We often talk about being good stewards of the land, but we also have to make a profit.” Schomberg says. “Those have to be done in lockstep.” In order for Miscanthus to be profitable, one must ensure market access.

“As a commercial crop, the first bullet (point) is markets. I cannot emphasize that enough. You grow a crop, and in order to get paid for it, you have to have some kind of a market,” Schomberg says. “We’re fortunate in working with AGgrow Tech in that they have worked in Iowa to find markets beyond the fuel market – In erosion control, bedding, and a replacement for plastic, Styrofoam, and paper.”

Schomberg grows an upwards of 60 acres. Fifteen acres have been dedicated to commercial production. Schomberg plants Miscanthus on underperforming acres.

“The fields I selected for a Miscanthus campus were fields that met several criteria. They were less productive. Yield monitors, when you hit those areas, would drop. They had more slope. The soil types were more erodible. They had odd shapes and were frustrating to farm with the types of equipment we’re using now, in terms of size,” Schomberg says.

In terms of a profit, Schomberg nets roughly 86-dollars per ton.

“Less fixed expenses,” Schomberg says. “What is different about the perennial crop is you have the upfront cost. So you have to invest in it. As I run numbers – Once I paid my upfront costs after the fourth harvest year, without putting land costs into it, I’m projected to net about $500 per acre.”