Miscanthus, a new perennial crop for biomass production can be used as raw material for energy, building materials, geotextiles and paper pulp. Plant propagation can be performed by means of tissue-culture-propagated plants or by rhizomes. In the latter case, the farmer can produce them on his farm from 2–3yr old plants, which will reduce costs compared to micropropagation. Methods were developed for harvesting and planting of rhizomes. Harvest of the crop is influenced by the destination of the raw material and the drying and storage methods. Harvesting can be done by existing mowing, baling and chopping machines for some building material applications and energy and paper pulp use. For utilization of Miscanthus as special building materials and geotextiles whole stems are required, and machines for mowing and bundling of whole stems are a necessity. Different storage possibilities have been investigated. Selection of the most appropriate method can be performed only by comparing complete production chains from field harvest to delivery at the processing plant. Costs of different chains are compared from soil preparation to transport to the processing plant. Self-propelled baling is one of the lowest cost options but chopping and compaction after storage is also an attractive option, since drying is possible and transport costs are lower.