Biogas and Organic Farming: Empirical evidence on production structure and economics in Germany

Summary

Biogas production has an increasing importance on organic farms in Germany. Biogas plants have the possibility to produce energy, soil fertility and positive returns on capital. Yet previously no studies on the structure, economic outcomes and internal benefits of biogas production on organic farms existed. Therefore in 2006 and 2007 an empirical study, designed as a census, has been carried out to investigate these questions. Based on the empirical study a simulation model was built to analyse the economic potential. The highest economic potential, particularly if organic food and energy production are to be accomplished, was found for biogas plants which are mainly residual-based and on a farm scale size. The construction of small but also low priced biogas plants for organic farms will be a challenge.