Who Owns Biomass - Tenant or Landowner?

Dakota Farmer

Who owns the biomass? NDSU economists are asking that question as they study the feasibility of producing wheat straw and other crop residues for the proposed Spiritwood, N.D., biofuels plant.

Farmers who rent land argue that biomass is theirs, like the grain they produce on cash-rented land, says Cole Gustafson, NDSU Extension biofuels economist.

But landowners can argue they own the biomass. Stalks and straw are usually left on the land after the grain is removed. They protect the soil from wind erosion and, as they decompose, build organic matter and soil health

"North Dakota law states that tenants own production that accrues over the rental period, which broadly includes crop residues," says David Saxowsky, an NDSU agricultural attorney. "This line of reasoning is consistent with past practices which allow tenants to remove straw for feed and bedding. A specific law supporting this view is North Dakota Century Code (NDCC) 47-16-04. It says that in the absence of any agreement to the contrary between the lessor and the lessee, the products received from real property during the term of a lease belong to the lessee."

Read more