Economic Analysis of Biochar Use in Soybean Production in Poland

Abstract

Soybean (Glycine max L.) is one of the most important crops grown globally. Biochar has been proposed as an alternative to aid sustainable soybean production. However, comprehensive studies that include both the economic aspects of soybean production and biochar are scarce. Poland, with an economy largely based on agriculture, is an interesting case to investigate the cost-effectiveness of using biochar in soybean production. We show that the use of biochar at rates of 40, 60 and 80 t/ha is unprofitable compared with a traditional soil amendment, such as NPK fertilization. The breakeven price for biochar to be economically viable should be USD 39.22, USD 38.29 and USD 23.53 for 40, 60 and 80 Mg/ha biochar, respectively, while the cost of biochar used for this experiment was USD 85.33. The payback period for doses of 40 and 60 Mg/ha was estimated to be three years. With a carbon sequestration subsidy of USD 30 per ton of CO2, the use of biochar may be profitable in the first year of soybean production. This is the first comprehensive economic analysis of the use of biochar in soybean production in Poland and one of the few published worldwide.

Impact of Corn Cob-Derived Biochar in Altering Soil Quality, Biochemical Status and Improving Maize Growth under Drought Stress

“…Several factors influence enzyme activity in the soil, including soil structure and texture, soil moisture, pH and temperature [12,13]. Biochar has a large surface area, which improves soil structure, retention capacity, and influences soil pH [14,15]. These changes in soil properties associated with biochar amendment can thus influence enzyme activities.…”

Methodical Aspects of Soil Ecosystem Services Valuation

“…Based on the dose of biochar, the proportion of fixed carbon in biochar (approx. 80%) and the fraction of persistent biochar (70%) Latawiec et al (2021) calculated financial benefits to farmers from carbon sequestration in soil given three levels of subsidies for tonne of CO2eq stored (USD 10, USD 20 and USD 30). They found that if with the subsidy of USD 30 t ha -1 from carbon sequestration, the soybean production with the addition of biochar (40 Mg ha -1 and 60 Mg ha -1 ) would be profitable already in the first year of cultivation.…”

Assessment of Greenhouse Gas Emissions in Soybean Cultivation Fertilized with Biochar from Various Utility Plants

“…Biochar production and application costs are one of the most important factors limiting the biochar use in agriculture. Latawiec et al [21] indicate that there is no economic profitability in biochar application as it improved in soybean cultivation in the amount of 40, 60, and 80 Mg/ha. These authors emphasise that the popularity of biochar application as a soil enhancer is determined by subsidy programs for farms, which introduce biochar to soil.…”

“…The introduction of organic carbon in the form of biochar is more beneficial in terms of improving soil fertility and in terms of permanent carbon binding in the soil [20,21]. Yuan et al [22] report that the efficiency of biochar introduced into the soil depends on the level of decomposition of organic matter, which, in turn, depends on the type of raw material of biochar and the temperature of biochar production.…”