Since European settlement the Aspen Parkland has been subject to agricultural intensification. This research assessed the agronomic, ecologic and economic impact of native Parkland conversion into tame pasture, by building on a study initiated in 1980 investigating the short-term agronomic responses within three landscape-level treatments: an intensive Clear & Break (C&B), a Spray & Burn (S&B) and a burnt Native Check (NC). Historical information was supplemented with recently collected data (2005-2006). Production remained high within the NC relative to the others after 25 years, in part due to contributions from browse in areas with increasing woody species. Plant species composition also demonstrated considerable convergence (i.e. overlap) between native and tame grasslands, and although not different in soil organic matter, microfaunal activity differed marginally. Net present value (NPV) economic analysis indicated the NC and S&B provided greater aggregate returns over the study period, and has implications for aspen management in the future. / Rangeland and Wildlife Resources

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / Johnsonville Sausage is a privately held company based in Sheboygan Falls, WI. The company has a growing cooked sausage business and is evaluating options to expand capacity. Investing in either of two existing facilities or outsourcing production to a co-manufacturer is being considered in this make versus buy analysis. Intense competition in the category and uncertain raw material markets are considerations in the evaluation. Data used for the analyses were obtained from Johnsonville sources. Assumptions for the “make” analyses were based on existing data where applicable such as labor and utilities, and in other cases assumptions were made based on company knowledge of the process. Johnsonville engineers worked closely with equipment vendors to develop the building and equipment investment plan. Data for the “buy” alternative were received from a prequalified co-packer with advanced manufacturing technology. A Net Present Value (NPV) model is developed for each alternative and used to determine financial viability of each. The models consider varying investment requirements, freight rates and cost of goods for each alternative. Sensitivity analyses are performed to address key variables such as raw material prices and sales volume. The paper concludes that investment in Sheboygan is a viable option; however, the investment poses risk if raw material prices rise and or volume declines from expected projections. Therefore, the recommendation is to outsource production and initiate the Sheboygan project when the co-packed volume reaches 15 million pounds.

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / Best Maid is a middle-sized regionally orientated company, headquartered in Fort Worth, Texas. It is currently owned and operated by the fourth generation of the Dalton family. The company specializes in the production of pickles and condiment products and currently holds the title of #1 retail brand of pickles in the state of Texas. In addition to the Best Maid label, products are also produced under the Del-Dixie label. The objective of this thesis is to analyze a potential capital project: a bucket line replacement. The analysis will be completed by using net present value to determine the cost and benefits of the project. The focus of the project will be the food service bucket line. The current line was designed and installed over 20 years ago. Currently, this line and supporting resources require a staff of 17 employees to operate. The process is looking to be improved through advances in technology including vibratory conveyors, more complex PLC programming, and increased accuracy of scaling equipment. Implementing these advancements has the potential to reduce the employee labor cost as well as decrease over-scaling. The goal of this project is to inform the Best Maid owners of the investment costs, labor savings, benefits, and the financial viability of the proposed capital investment. Best Maid has consistently grown at a high single digit to low double digit rate each year. Businesses must continually identify and react to the needs of tomorrow, today. Formal processes within the business will be established to evaluate and prioritize future potential projects. The conclusion of the analysis resulted in a positive NPV of about $567 thousand and a favorable IRR. The recommendation is to adopt the new technology.

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / The purpose of this thesis is to analyze the impact the installation of an automated packaging system would have on the predominately manual bulk packaging work centers at Wixon Inc., a privately held, integrated food and beverage developer, manufacturer, and processor. The objective of this thesis is to determine if converting to an automated system would minimize costs and increase line speeds. The owners desire a 3-year payback on the investment. In addition to the financial and economical aspects of automating the equipment, there are potential food safety and personnel safety improvements that would be brought to the firm by changing equipment. The firm’s owners want to be proactive and minimize any impact a reduction in the labor pool might see cause from the exit of workers from the Baby Boomer generation. Methods used to determine the objectives of this thesis include a comparative time study of bag filling rates, an analysis of incremental cost savings, net present value (NPV) analysis and return on investment (ROI). Data were collected from studies conducted by the engineering consulting firm of Middough Incorporated, from Wixon Inc. accounting records and, interviews of key Wixon employees. The report provided by Middough determined that the new system would be able to replace three work centers in the Bulk Packaging department based on bag fill rates and flexibility in bag sizes. This reduces the employee cost per bag. The incremental costs were analyzed using accounting records for past history. Floor space, labor costs and other integral costs were compared to determine what costsavings there may be. Cost savings were treated as cash flow. The NPV and ROI for the project used this cash flow to determine if an investment in automation is a wise one. The conclusion based on the analysis made was that, based on NPV the investment would be profitable. However, the 3-year payback of $1.5 million would not be possible under current assumptions. The automation would reduce the number of needed employees enough to absorb any reduction in the labor pool while providing increased food and employee safety.

Master of Agribusiness / Department of Agricultural Economics / Jason S. Bergtold / Location optimization of a new dairy processing plant is crucial given the significant capital investment of $350 million required to build the plant. Couple this with notable differences in milk and transportation costs due to location, an examination of historical Net Present Value (NPV) of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) adjusted by a discount rate of 3% is warranted to help determine the most optimal location for a new dairy processing plant investment. This thesis is an examination of historical EBITDA NPV for three locations: Dumas, TX, Sioux Falls, SD, and Lansing, MI in an effort to predict the optimal location of a future dairy processing plant. These locations were chosen due to each having the necessary milk supply that would both encourage milk production and support increases in dairy processing. Prices dairy processors receive for cheese can fluctuate but are not tied to the location in which the cheese is produced. Transportation costs of the cheese are determined by the distance to the processing plant from Plymouth, WI, which is where most further cheese processing takes place. Therefore, this thesis includes a sensitivity analysis for the Lansing, MI location to determine a breakeven milk cost and cheddar cheese price. The NPV was positive for the Dumas, TX location at $100 million as compared to (-$820) million and (-$247) million at the Sioux Falls, SD and Lansing, MI locations, respectively. The results indicate an emerging EBITDA NPV trend favoring the Lansing, MI location as indicated by this location having the best performance in the last two years (2016-2017) of $104 million compared to a negative performance at both of the other locations. The previous 8 years performance would favor the Dumas, TX location, however more weight was given to the past 2 years performance as an indicator for future economic returns. As a result, this thesis concludes the Lansing, MI location as the most favorable location for a new dairy processing investment.

Life Cycle Cost Analysis (LCCA) forms an important part of asset management practices and provides an informed decision support. The holistic nature of LCCA includes life cycle assessment (LCA) as an important component alongside economic life cycle cost analysis. The drinking water industry is right now lacking a reliable cost data structure which will ensure that all the utilities capture the same set of cost data. Also, models and tools currently available in the academia and industry are purely deterministic in nature and do not cater to uncertainty in the data. This study provides a framework for a holistic life cycle cost analysis tool which will help drinking water utilities to prioritize the activities and optimize the cost spending of the utility. The methodology includes the development of a cost data structure, a life cycle cost analysis and a life cycle assessment model in the form of an excel spreadsheet. The LCCA model has the capability to compare different pipe materials, installation, condition assessment, rehabilitation and replacement technologies. Whereas, LCA model can compare different pipe materials based on greenhouse gas emissions calculations. The final step of the methodology includes piloting the model with data from utility A. The analysis has been shown in the form of three case studies - comparison of two pipe materials, two pipe installation technologies and two pipe rehabilitation technologies. The case studies provide results in the form of comparison of total life cycle costs for different alternatives and hence a better alternative can be chosen. / Master of Science

Climate change has already had major impacts on our planet. Loss of sea ice, accelerated sea level rise and longer, more intense heat waves, are a few of these. Many scientists believe that a continued climate change will have even more severe impact on our planet. To tackle the climate change, a fast transition towards renewable energy sources is necessary. One of the most promising sources of renewable energy is solar energy. To achieve the goal of making the world more reliable on solar energy, various actors try to improve the technology and the financial basis regarding this way of extracting energy. In this transition, calculations have to be as accurate as possible, in order to benefit from them when installing solar panels. This bachelor thesis intends to create an investment model for solar plants and an optimization of the plant’s size based on net present value. The model is built in Microsoft Excel, and factors such as electricity prices, electricity production/consumption and several others are taken into account. Based on the comparison with a case study and the calculations made by the model, the results suggest a reliable model. On behalf of Herrljunga Elektriska AB, the model is created to help them generate reliable and fast investment calculations, which will hopefully bring value to their business.

This master thesis has been performed in association with Blekinge Institute of Technology and in collaboration with the company Dynapac Compaction Equipment AB. The thesis aims to investigate how Discrete Event Simulation (DES) can be used for value and sustainability design concept assessments in early design stages. The research is made by investigating the example of simulating the lifecycle of a double drum asphalt compactor. The model is created in the computerbased DES software Simio LLC, where the captured data of the compactor´s lifecycle performances are linked to a Net Present Value (NPV) model and a sustainability assessment. The model is then further explored and evaluated in the Decision Arena, located at Blekinge Institute of Technology.  The simulated model is created to approach a ‘lifelike’ lifecycle of the machine, containing the compactor´s ordinary usage in road construction. This includes operations in sidewalk, parking lot and pothole repair scenarios. The model contain service, maintenance, transport, workers, resource sharing and more. The model is connected to MS Excel to transfer data. The life cycle performances are captured in the model and used to estimate the cost parameters of energy -, water -, maintenance -, service - and transportation energy cost within the NPV model. The CO2 – emission for fuel consumption and transport, together with the total water consumption in the sustainability assessment.  The outcome of the thesis showed that the method gave good results for developing new design configurations in the early phases in product development. The method could support designing towards sustainable and long-term solutions and collaborations over the sectors (i.e. between stakeholders, engineers, designers, non-experts and more). The outcome in the specific case resulted in successfulness of capturing all lifecycle performances of the machine and linking them to the mentioned parameters. The research question is, however, generic and the investigation for the specific case study uses assumptions and up- and down scaled data to protect the company secrecy. For future work, the method together with Internet of Things (IoT), Digital Twin or Industry 4.0 could be in high interest to investigate further. / Detta examensarbete har blivit utfört i association med Blekinge Tekniska högskolan och i samarbete med företaget Dynapac Compaction Equipment AB. Syftet med projektet är att undersöka hur diskret händelsesimulering (DES) kan användas för värde - och hållbarhets bedömning för olika designkonfigurationer, i tidiga skeden av produktutvecklingen. Arbetet är utfört genom att tillämpa exemplet av att simulera livscykeln för en asfaltsvält med dubbla trummor. Simuleringsmodellen är framställd genom det databaserade DES programmet Simio LLC, där utdata för maskinens livscykelprestanda tas fram och kopplas till en Net Present Value (NPV) modell och en hållbarhetsdömning för maskinen. Simuleringsmodellen utforskas och bedöms sedan vidare i ’Decision Arena’ på Blekinge Tekniska Högskola.  Den simulerade modellen är framställd för att eftersträva en verklighetstrogen livscykel av maskinen, innehållande dess vanliga användningsområden inom vägarbete. I livscykeln inkluderas operationer av trottoarer, parkeringsplatser och reparationer av hål i vägbanor. Modellen innehåller även service och underhåll, transport, arbetare/anställda, resursdelning med mera. Modellen är kopplad till MS Excel för att föra över in- och utdata mellan programmen. Maskinens livscykelprestanda är hämtat från modellen och använt till att uppskatta kostnadsparametrarna för energi, vatten, underhåll, service och energi under transport i NPV – modellen. Maskinens CO2 – utsläpp för bränsleförbrukning och transport, tillsammans med vattenkonsumtionen i hållbarhetsbedömningen. Arbetet visar på goda resultat för att utveckla nya desginkonfigurationer i de tidiga skedena inom produktutveckling. Metoden kan stödja utformning mot hållbara och långsiktiga lösningar, samt förstärka samarbeten över sektorerna (dvs. mellan intressenter, ingenjörer, designers, icke-experter med mera). Utfallet för det specifika fallet resulterade i framgång med att fånga upp maskinens livscykelprestanda och koppla dessa till de ovan nämnda parameterana. Forskningsfrågan är dock generell och utredningen för den specifika fallstudien använder uppskattningar och upp- och nerskalade data för att skydda företagets sekretess. För framtida arbete, kan metoden tillsammans med Internet of Things (IoT), Digital Twin och Industry 4.0 vara av stort intresse för att undersöka.

Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / The cost of energy is a major concern for the United States and its citizens. With domestic demand at all time highs, the need for renewable fuels has become a key in reducing our countries reliance on imported energy. It is important for the U.S. to examine the feasibility of producing its own energy from renewable resources that can be grown domestically. Along with the potential financial gains from renewable fuels, the ability to control the supply of energy for the U.S. is also very important. With the amount of oil imported by the U.S., the ability to produce more of our nations needs and not be forced to rely on other countries could be important for our country moving forward. With the political unrest in many oil producing areas, the security of energy independence is a goal for the U.S. This study uses United States Department of Agriculture, Pro Exporter, Advance Trading, and other statistical sources to analyze the economic feasibility of an ethanol plant near Des Moines, IA. It looks at the available supply of corn in the area as well as the production of ethanol and distillers grains. An increase in the price of imported oil does not necessarily results in an economically viable ethanol plant. Many variables go into the economic viability of an ethanol plant and consumers will still buy the low cost good, and that may be imported energy. Some of these variables affecting economic viability include corn price and availability, denaturant price, natural gas price, ethanol demand and distillers grains demand. With the push for cleaner air and a cleaner environment, ethanol is also used as a gasoline additive to reduce emissions. As more states regulate a higher inclusion rate of ethanol, this will continue to create greater demand. A 100 million gallon ethanol plant is an economically viable investment in the Des Moines area, but when looking at the sensitivity tests, the better investment option if investors want to enter the ethanol industry, is to buy an existing ethanol plant.

Master of Agribusiness / Department of Agricultural Economics / Jeffery R. Williams / The objective of this thesis is to conduct a net present value analysis of installing a solar power generation system on company owned turkey grow out ranches. This research project provides information regarding the systems power production capacity, investment cost, maintenance requirements, amount of energy saved, useful life of the equipment, marginal state and federal tax brackets for the company. The investment cost of the system includes the price of the equipment and installation service. Many of the system costs may be offset by rebates, tax credits and grants from various government agencies. These must also be included in the financial analysis as they can greatly affect the financial viability of the project. The system is projected to have a useful life of 30 years with an inverter replacement planned for year 15. Four scenarios were evaluated using two levels of rebates and two electrical rate inflation levels. The evaluations conducted showed positive after tax NPV evaluations on three of four scenarios reviewed with the most financially attractive options available when the rebates, tax credits and grants were maximized. This was the case at both electrical rate inflation scenarios. These same scenarios produced favorable results when looking at reduction of live production ranch costs. The system effectively locked in electrical rates below current rates for the 30 year life of the system. This reduced ranch live production cost by as much as 11.73 percent. It also gives the company an advantage over the competition when used as a marketing tool due to the use of green technology in company production practices.