The effect on costs and profit can be predicted by itemizing and predicting each of the components of farm costs and profits that may change with a change in manure management. Partial budgeting is a technique that can be used for this purpose. Changed cost and returns include the annualized (amortized) value of change in investment, change in annual operating cost, and change in annual returns or income. These changes include those directly attributable to the energy capture system as well as savings and additional expenses elsewhere in the farming operation.

In a simple example, if poultry litter is sold to an energy producer rather than to a farmer who land-applied it, the comparison may be simply the price received from each buyer and any differences in storage and handling costs.

In a more complex example, the installation of an anaerobic digester and electricity generation system requires careful projection of appropriate system capacity and design, investment, operating costs, operating income, savings on the farm, and additional costs incurred on the farm over the expected life of the digester and generator. Critical elements of this analysis may include subsidies such as payments, loans, and tax benefits for “green” power generation and contract terms with the electricity buyer. Additional considerations may include revenue from greenhouse gas emission reduction (carbon credits) and the value to the operator of reduced odor or emissions of other gases.

It is strongly advised that producers seek objective professional assistance in evaluating investments in systems to capture energy from manure. As energy prices are increasing, so is the feasibility of capturing energy from manure.

For more information, consult the following resources:
• 1996 Penn State Cooperative Extension fact sheet, titled "Biological Manipulation of Manure: Getting What You Want from Animal Manure," on capturing methane from manure: www.age.psu.edu/extension/factsheets/g/G87.pdf

• Agstar Web site with links to the AgSTAR program sponsored by USEPA, USDA, and USDOE. The AgSTAR program supports capture and utilization of methane from livestock manure to produce energy:
www.epa.gov/agstar/index.html