The Energy Independence and Security Act of 2007 has prompted the development of renewable energy. The research objective was to determine what contracting terms provide sufficient incentives for farmers to establish switchgrass on high- and low-quality cropland compared to traditional enterprises on a representative East Tennessee farm. Contracting alternatives, including a spot market, University of Tennessee Biofuels Initiative, and an expected yield contract, were analyzed. It was determined that contracting incentives analyzed would not be sufficient to encourage switchgrass production on any cropland on the representative farm.