Open Access

Sabine Wichmann

• Drainage has commonly been a pre-requisite for the productive use of peatlands. The biased focus on agriculture, forestry and peat extraction has long ignored the destructive effects of drainage and the successive degradation of ecosystem functions of wet peatlands. Accelerated by the climate crisis, the finite nature of drainage-based peatland use is increasingly recognised. Consequently, productive land use options for wet or rewetted peatlands (paludiculture) are required as sustainable alternatives. A wide range of paludiculture plants and options of biomass utilisation are identified as suitable and promising. Despite the growing interest, experiences with and research on the economic viability of paludiculture are still rare. This thesis addresses the lack of knowledge on paludiculture in terms of practical feasibility, costs and benefits at the farm level, market prospects and framework conditions. I selected the two currently most advanced paludicultural practices in Europe: a) Harvesting natural reed beds as a traditional ‘low-input’ paludiculture, i. e. the utilisation of existing ‘wild’ vegetation stands; b) ‘Sphagnum farming’ as a novel ‘high-input’ paludiculture including stand establishment and water management required for the active transformation from drainage-based peatland use to paludiculture. In both cases, I investigate three different biomass utilisation avenues. This thesis adds to the fields of problem-driven sustainability and land-use science. Procedures and costs of paludiculture were studied in transdisciplinary research projects in close cooperation with practitioners. Due to the novelty of the topic, I put special emphasis on the triangulation of methods and data sources: pilot trials, field measurements, semi-structured expert interviews, structured questionnaires, secondary data from trade statistics and literature. To account for uncertainty related to costs and revenues, I conduct stochastic scenario analysis (Monte Carlo simulation) for the extended contribution margin accounting of harvesting reeds and sensitivity analysis for the investment appraisal of Sphagnum farming. Paludiculture on fens: harvesting reeds Paper I investigates harvesting procedures for reed-dominated (Phragmites australis) vegetation stands. In many European countries special-purpose tracked machinery is applied for large-scale conservation management and the commercial harvest of thatching reed. Stochastic scenario analysis reveals a wide range of possible economic outcomes (ca. € -1000 to € 1500 ha-1 a-1) and identifies material use of reed superior to its use as a source of energy. Winter harvest of high-quality thatching reed in bundles is the most profitable option. Winter harvest of bales for direct combustion is suitable for low-quality stands and has a limited risk of loss. In the case of summer harvest, revenues for green chaff for biogas production cannot cover harvesting costs but non-market income via subsidies and agri-environmental payments may ensure profitability. While biomass for energy generation is limited to a local market, thatching reed is traded as an international commodity. The market situation for thatching reed is investigated for Europe (Paper II) and Germany (Paper III). The major reed consuming countries in Western Europe (Netherlands, Germany, UK, Denmark) rely on imports of up to 85 % of the national consumption, with reed being imported from Eastern and Southern Europe and since 2005 also from China. The total market volume for reed for thatching in Northern Germany is estimated with 3 ± 0.8 million bundles of reed with a monetary value at sales prices of € 11.6 ± 2.8 million. Most of the thatchers (70 %) did not promote reed of regional origin to their customers due to insufficient availability in the first place and a lack in quality as second reason. The cultivation of reed in paludiculture may improve quantity and quality of domestic thatching reed. An area of 6000 ± 1600 ha with an average yield of 500 bundles per hectare would allow covering the current total demand of 3 million bundles of the German thatching reed market (Paper III). Paludiculture on bogs: Sphagnum farming Sphagnum farming provides an alternative to peatland degradation in two ways: Firstly, Sphagnum mosses can be cultivated as new agricultural crops on rewetted peatlands. Secondly, the produced Sphagnum biomass is a high-quality raw material suitable to replace peat in horticultural growing media (Paper V). Pilot trials have demonstrated the practical feasibility of establishing Sphagnum cultures on former bog grassland, cut-over bogs and mats floating on acidic waters bodies; Paper IV compares for the three types of production sites the specific procedures, costs and area potential in Germany. Water-based Sphagnum farming is not recommended for large-scale implementation due to highest establishment costs, major cultivation risks and limited area potential. For soil-based Sphagnum farming, the most important cost positions were Sphagnum shoots to set up pilots, investment for water management and regular weed management. Bog grassland has the highest area potential, i. e. 90,000 ha in NW Germany. Paper V assesses the profitability of Sphagnum farming on former bog grassland based on extrapolating five years of field experience data (establishment ņ management ņ harvest) to a total cultivation time of twenty years. Cultivating Sphagnum biomass as founder material for Sphagnum farming or restoration was profitable even in pessimistic scenarios with high costs, high bulk density and low yields. Selling Sphagnum for orchid production was economically viable in the case of medium to high yields with a low bulk density. Cost-covering prices for Sphagnum biomass substituting peat seem achievable if end consumers pay a surcharge of 10 % on the peat-free cultivated horticultural end-product. An area of 35,000 ha of Sphagnum farming suffices to meet the annual demand of the German growing media industry for slightly decomposed Sphagnum peat. Framework conditions affecting feasibility of paludiculture The relation of revenues from selling biomass to its production costs is an important piece of the paludiculture feasibility puzzle. Further aspects effecting the economic viability and competitiveness of paludiculture encompass the market demand, the availability of mature technology, legal restrictions, the eligibility for agricultural subsidies, a remuneration of external benefits and the opportunity costs of present farming activities (Paper I, V). Legal and policy regulations are of major importance for land use decisions on peatlands – both for keeping up drainage and for shifting to paludiculture. Conclusion and Outlook This thesis provides a first assessment of the costs and profitability of large-scale harvesting of reeds and Sphagnum farming based on real-life data. The paludicultural practices investigated may be a solution for a minor share of the more than 1 million ha of peatlands drained for agriculture in Germany. Future research should also address other biomass utilisation options and other crops. Large-scale pilots are required to improve technical maturity of procedures and machinery, gather reliable data to replace assumptions on costs and revenues and study long-term effects on economics and ecosystem services. The micro-economic perspective needs to be complemented by the societal perspective quantifying and monetising external effects of peatland restoration, paludiculture and drainage-based peatland use. There is a high need for intensified research, large-scale implementation and accelerated adaption of the policy and legal framework to develop paludiculture as an economically viable option for degraded peatlands.