【Abstract】The rapid expansion of the U.S. biofuel industry diverts a large amount of farm land into energy feedstock production, and in turn affects food, energy and land market equilibria, as well as agricultural economic development in local areas. In this talk, we present Stackelberg-Nash game models that incorporate farmers' decisions on land use and market choice into the biofuel manufacturers' supply chain design problem. The models determine the optimal number and locations of biorefineries, the required prices for these refineries to compete for feedstock resources, as well as farmers' land acquisition and production decisions. We also introduce government farmland use regulations that aim at balancing food and energy production and marginal land use, and a cap-and-trade implementation mechanism. Spatial market equilibrium is utilized to model the relationship between crop supply and demand and the associated price variations in local food markets. We develop solution approaches that transform the original discrete mathematical program with equilibrium constraints into a mixed integer quadratic programming problem, and explore adaptive decomposition methods based on Lagrangian and linear relaxations. The proposed methodologies are illustrated with an empirical case study of the Illinois State. The computation results reveal interesting insights into optimal land use strategies, government