A mixed integer programming model is developed to determine a logistical design for maximizing rates of return to harvest, storage, transportation, and bioreflning of herbaceous crop residue for production of biofuels and feed for ruminant animals. The primary objective of this research is to identify the optimal location, scale, and number of pretreatment and biorefinery plants in northeastern North Dakota. The pretreatment and biorefinery plants are modeled under the assumption that they utilize recent technological advancement in AFEX and Simultaneous Saccharification and Fermentation, respectively. Potential feedstocks include wheat straw, barley straw, Durum straw, and com stover. Results indicate that the minimum ethanol rack price that will effectively trigger the production of cellulosic ethanol is $1.75 per gallon.