Biomass production is spatially distributed resulting in high transportation costs when moving dedicated biomass crops and crop residues. A multifaceted approach was taken to address this issue as the low bulk and energy density of biomass limits transportation efficiency. Two systems were analyzed for the conversion of biomass into a denser feedstock applicable to on-farm use. Pelletization was able to densify the material into a solid fuel. Using a pilot scale flat ring pellet mill, the density of the material was able to be increased to at least 4.4 times that of uncompressed material. Pellet durability was found to be strongly related to the moisture content of the material entering the mill. Unlike with ring roller pellet mills, a higher durability was typically seen forbiomass materials with a preconditioned moisture content of 20% (w.b.). From a liquid fuel standpoint, the conversion of lignocellulosic material into biobutanol on-farm was the second method investigated. For the pretreatment of biomass, alkaline hydrogen peroxide spray was demonstrated to be an effective enhancer of saccharification. The viability of on-farm biobutanol preprocessing bunker facilities within Kentucky was analyzed using Geographic Information systems (GIS) to specifically address transportation related factors. The spatial variability of corn field production, size, and location were resolved by utilizing ModelBuilder to combine the various forms of data and their attributes. Centralized and Distributed preprocessing with Centralized refining (DC) transportation systems were compared. Centralized was defined as transport of corn stover directly from the field to a refinery. Distributed-Centralized was specified as going from the field to the biobutanol bunker with corn stover and from the bunker to the refinery with a dewatered crude biobutanol solution. For the DC design, the location of the field and refinery were fixed with the biobutanol bunker location being variable and dependent upon differing maximum transportation (8-80 km) cutoffs for biomass transport from the field to biobutanol bunkers. The DC designs demonstrated a lower (38 - 59%) total transportation cost with a reduced fuel use and CO2 emissions compared to the centralized system.