Notes
Page 86. Notes given in source: "Cost basis: As we have excluded straw needed for other uses, no price competition with these is considered. Costs of supply are harvesting, baling and handling costs (as baled, at farm gate), and costs of fertiliser to replace nutrients lost, using the method developed by ADAS (2008)
Supply curve based on 4 assumptions:
- No straw is extracted below the cost of harvesting and fertiliser replacement
- Half of the straw is extracted at below current straw prices
- 90% of the straw is extracted at below a price = (fertiliser value of straw + extraction costs) x 1.5 (additional 50% to cover value of other nutrients, soil structural benefits, profit margin)
- Some farmers will never extract straw: 2%
Resource availability increases over time (10% in 2008, 20% in 2010, 50% in 2015, 100% from 2030 onwards)