A systems approach is proposed to simultaneously consider the agronomic aspects of forage production and the processing aspects related to the extraction of a glucose or xylose substrate, its fermentation into ethanol and the optimal utilization of co-products (protein meal, fibrous residue). The energy to produce and transport forage on the farm was estimated to be only 375 MJ/t dry matter (DM) when liquid manure was used and 1165 MJ/t DM when mineral fertilizer was used. An additional 126 MJ/t DM would be required to transport it to a processing plant. In contrast, whole-plant corn production using mineral fertilizer required about 3211 MJ/t DM, but it had a potential ethanol yield 3.2 times greater per unit area than perennial forage. A forage system with mechanical juice extraction resulted in 8-20% of the original forage dry matter available in a liquid substrate with subsequent protein meal separation and the fermentation of soluble sugars into ethanol. Another forage system with relatively complete conversion of cellulose and hemicellulose into simple sugars by thermal, acidic and enzymatic treatments was estimated to produce 12-28 times more ethanol per unit area than the mechanically extracted juice. Complete conversion of perennial forages would meet the petroleum industry's needs more consistently than simple extraction of soluble components. (C) 1996 Elsevier Science Ltd.